AI-Powered Shopping Is Transforming How Consumers Buy Holiday Gifts

 

Artificial intelligence is emerging with a new dimension in holiday shopping for consumers, going beyond search capabilities into a more proactive role in exploration and decision-making. Rather than endlessly clicking through online shopping sites, consumers are increasingly turning to AI-powered chatbots to suggest gift ideas, compare prices, and recommend specialized products they may not have thought of otherwise.

Such a trend is being fueled by the increasing availability of technology such as Microsoft Copilot, ChatGPT from OpenAI, and Gemini from Google. With basic information such as a few elements of a gift receiver’s interest, age, or hobbies, personalized recommendations can be obtained which will direct such a person to specialized retail stores or distinct products. 

Such technology is being viewed increasingly as a means of relieving a busy time of year with thoughtfulness in gift selection despite being rushed.

Industry analysts have termed this year a critical milestone in AI-enabled commerce. Although figures quantifying expenditures driven by AI are not available, a report by Salesforce reveals that AI-enabled activities have the potential to impact over one-twentieth of holiday sales globally, amounting to an expenditure in the order of hundreds of billions of dollars. Supportive evidence can be derived from a poll of consumers in countries such as America, Britain, and Ireland, where a majority of them have already adopted AI assistance in shopping, mainly for comparisons and recommendations. 

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