As AI-powered chatbots move from gift inspiration to direct purchasing, they are rapidly reshaping holiday shopping—creating new opportunities for consumers and retailers while concentrating power in the hands of AI platforms. (Source: Image by RR)

Consumers Use AI to Find Niche Products and Compare Prices Faster

Artificial intelligence is beginning to meaningfully reshape the holiday shopping experience, with consumers increasingly turning to chatbots like Microsoft Copilot, OpenAI’s ChatGPT and Google’s Gemini for gift inspiration, product discovery, and price comparisons. Christmas shopper Rachael Dunfell, as noted in an article at bbc.com, uses AI tools to help uncover niche, highly personalized gifts that traditional searches would likely miss. What once required extensive browsing or insider knowledge can now be surfaced through a few conversational prompts.

Analysts say 2025 marks the first holiday season genuinely shaped by AI-assisted shopping, even as comprehensive spending data remains limited. Salesforce estimates that AI will influence 21% of global holiday orders, representing roughly $263 billion in sales, while surveys show growing consumer comfort with AI tools. In the U.S., more than half of shoppers say they would likely use AI for purchases, and in the UK and Ireland, 61% of consumers report having used AI while shopping, most often to locate deals or find where to buy specific items.

Retailers, however, face mounting pressure to adapt as AI increasingly mediates purchasing decisions. Experts warn that outdated or inconsistent product data can lead to poor recommendations, disproportionately harming smaller brands that rely on discoverability. As Melanie Nuce-Hilton of GS1 US notes, AI systems now influence what people buy before they ever visit a store or website, forcing retailers to rethink how product information is structured, maintained, and surfaced.

The next phase of AI shopping is already emerging, with direct purchasing inside chatbots beginning to take shape. OpenAI’s Instant Checkout feature and partnerships with platforms like Etsy, Shopify, Walmart, Target, and Salesforce hint at a future where consumers may complete transactions without leaving an AI interface. Yet analysts caution that AI companies currently control access, approvals, and visibility, raising concerns about market power and fairness. While AI promises greater convenience and personalization, it also introduces new risks—potentially amplifying impulsive buying and widening the gap between informed and uninformed consumers.

read more at bbc.com