As consumers spent a record $11.8 billion online during Black Friday, many transactions were facilitated by artificial intelligence. Although AI-driven purchases are still in their early stages, shopping assistants and agents from companies like Walmart (WMT.US), Amazon (AMZN.US), and Alphabet (GOOGL.US) have surpassed the capabilities of previous holiday-season chatbots. The latest versions aim to provide personalized product recommendations, track prices, and even place partial orders through unstructured "conversations" with customers. These features build upon shopping updates from AI platforms like OpenAI's ChatGPT and Google's Gemini.
One of the most anticipated releases this quarter is Google's new AI agent, which allows users to instruct it to call local stores and check inventory availability. According to Kayla Schwartz, Director of Consumer Insights at Salesforce (CRM.US), AI is estimated to influence $73 billion in global sales—22% of total spending—from the Tuesday before Thanksgiving through Cyber Monday. This figure was $60 billion a year ago, encompassing everything from ChatGPT queries to AI-generated gift suggestions on retailer websites.
Despite these advancements, Brad Jashinsky, Senior Retail Industry Analyst at Gartner, notes that AI's impact on holiday shopping this year remains "relatively limited," as not all shopping sites offer useful tools, and not all shoppers are willing to adopt them. "The more retailers that roll out these tools, the better they’ll become, and consumers will adapt and seek them out. But changing consumer behavior takes time," Jashinsky said.
Here are three ways AI is expected to reshape holiday shopping habits by 2025:
1. **Bypassing Search Bars** AI's most evident potential lies in tools that promise faster, more detailed results with fewer clicks than traditional browsers. OpenAI enhanced ChatGPT with a shopping research feature that generates personalized buying guides using product pages, reviews, pricing, and user interactions. Amazon’s AI assistant, Rufus, now leverages browsing history and purchases for tailored recommendations. Google’s upgraded AI search tool answers natural-language queries—like finding a casual sweater for a January trip to New York—by scanning its 50 billion product listings and generating side-by-side comparisons. Walmart’s Sparky and Target’s holiday-themed AI gift finder also offer occasion-based suggestions.
2. **New Price-Tracking Tools** While tools like CamelCamelCamel and PayPal’s Honey have long tracked online prices, this season introduces new options. Amazon launched a 90-day price history tracker for nearly all its products, plus budget-based alerts. Google and Microsoft (MSFT.US) also rolled out advanced price trackers, with Google allowing refinements by size or color. Jason Goldberg, Chief Commerce Strategy Officer at Publicis Groupe, predicts these tools will pressure retailers to stay competitive: "Many consumers will discover price alerts for the first time."
3. **Seamless AI-Powered Purchases** Amazon, OpenAI, and Google are racing to enable end-to-end AI shopping within a single app. OpenAI’s instant checkout lets users buy ChatGPT-recommended items from Etsy (ETSY.US) or Shopify brands without leaving the platform. Partnerships with Walmart and Target allow multi-item cart additions, though checkout still redirects to retailer apps. Amazon’s Rufus can auto-purchase items for users who opt in, while Google’s "Buy for Me" feature completes transactions via Google Pay when prices drop. Google also introduced AI-powered calls to local stores for product inquiries, disclosing its AI identity upfront.
Target (TGT.US) and Walmart declined to comment on integrating similar services in the future.
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