How AI Will Help Santa This Holiday Season

Dan Box feeds ChatGPT information about his children throughout the year. By the time the holidays arrive, he expects OpenAI’s chatbot to have learned enough about their hobbies and interests to suggest thoughtful gifts and where to find the best prices.

“For years I felt stressed about the holidays because I really wanted to buy great gifts, but it always took so much time,” said Box, a Vancouver-based gaming executive. “Using AI makes the process easier, and I like that.”

Box’s approach reflects a growing trend. More shoppers are relying on artificial intelligence to recommend products, monitor prices, notify them of sales, help complete purchases and arrange deliveries. Industry surveys and consumer behavior suggest the holidays intensify these patterns.

AI drives smarter holiday spending

Shopify’s survey of 18,000 consumers and 7,500 business leaders found that 64% plan to use AI for at least one shopping task this holiday season. Among Gen Z respondents (ages 18 to 24), adoption is even higher: 84% expect to use AI tools.

Since ChatGPT’s release in November 2022, many shoppers have turned to AI for discovery and comparison. The financial pressure of the season may persuade even more to try it for deal-finding. “Consumers are extremely price sensitive, and AI is a powerful tool for comparing deals,” said J.C. Williams Group retail strategist Lisa Hutcheson. “This year people will start to realize that.”

Shoppers also face an abundance of choice. Jenna Jacobson, director of the Retail Leadership Institute at Toronto Metropolitan University, says the variety of retailers, platforms and product offerings can be overwhelming. AI helps “cut through the noise,” she adds, by tracking prices, alerting users to product drops and locating coupons or promotions.

That behavior shows up in other research as well. Consultancy Accenture surveyed 630 Canadians in August and September and reported that 59% planned to use AI for product comparisons during the holidays. About 54% said they would use it to find where to buy items, and 47% said they would use AI for gift ideas and inspiration.

AI guides gift searches, with some gaps

Many people use AI primarily to research and generate gift ideas, while more experienced users employ it strategically to save time and money.

Box exemplifies both approaches. He uses AI to sift through Black Friday and Cyber Monday deals and to find gifts that feel personal. When shopping for a birthday present for his rugby-loving son, ChatGPT suggested the same type of ball used by the Australian national team, reflecting the family’s connection to Australia. On another occasion, the chatbot recommended a pair of boots Box hadn’t discovered on his own but that proved to be well suited to his needs.

Yet AI does not solve every shopping problem. Toronto account manager Caitlin Chua used ChatGPT to compare phone features and to find accommodation options for a trip to Croatia, with satisfactory results. But when she tried Dupe.com, an AI tool that searches for lower-cost lookalikes, it failed to locate a specific pair of pants with a distinctive cutout that she wanted. The alternatives were similar in some respects but lacked the exact detail, so she did not buy any replacement.

That experience highlights a limitation: AI can miss niche or out-of-stock items, and sometimes relevant matches simply don’t exist. Hutcheson cautions that AI remains in an early stage; it can surface outdated or inaccurate information and should not be viewed as infallible. Even so, shoppers are likely to continue using AI for price comparisons and idea generation during the holidays.

Retailers push AI, but hurdles remain

Retailers are actively integrating AI. In September, Shopify and Etsy partnered with OpenAI to allow ChatGPT to surface merchants’ inventory directly, creating opportunities to meet customers where they prefer to shop. For retailers, AI builds on search engine optimization and social media by providing conversational, personalized discovery.

Still, many consumers and businesses lag behind these advances. Brick-and-mortar stores remain dominant in many markets, and not all shoppers are willing to share the personal details that can improve AI recommendations. Privacy concerns and reluctance to disclose preferences for gift recipients are likely barriers to deeper adoption.

“The biggest hurdle will be educating consumers about how to share useful information safely,” Hutcheson said. “That’s not likely to change overnight during this holiday season.”

“Black Friday and Cyber Monday are short, intense windows that create urgency,” Jacobson said. “AI helps shoppers by surfacing price history, notifying them of sales, and finding promotions amid the noise.”

Despite its limitations, AI’s ability to streamline comparison shopping and suggest relevant products is reshaping how people approach gift buying. Many shoppers plan to use it for inspiration, research and price checks, while more advanced users will employ it to time purchases and make strategic choices.

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