Consumers are using AI to find deals, compare products, and build gift lists, while retailers use it to forecast demand, personalize offers, and speed service. Here’s what’s changing, what the data says, and simple steps you can take now.
How AI Will Change Holiday Shopping
AI has been the buzzword for years, but this season, it is taking center stage in how we shop. AI holiday shopping is moving beyond chatbots and product descriptions — now, AI is shaping real decisions from gift ideas to pricing, customer support, and even inventory planning. I use AI myself to find the best deals (because with tariffs and inflation, every dollar counts).
I’m not alone: Talkdesk’s third annual AI Holiday Shopping Report shows that 75% of consumers plan to use AI to find deals and 67% to get personalized gift ideas this holiday season, showing just how quickly these tools have become part of everyday buying habits. Major retailers like Amazon and Walmart are betting heavily on AI, but small business owners can compete, too.
In this guide, I’ll show how AI is changing holiday shopping for both consumers and retailers and what steps you can take to stay visible, profitable, and ahead.
Key takeaways:
- AI is now part of everyday shopping: Tools that once analyzed data are now recommending gifts, finding deals, and even handling customer service.
- Big retailers lead, but small businesses can keep pace: You can apply the same AI techniques, including product discovery, voice ordering, and smart inventory, to your own store.
- Practical, affordable steps work: From AI-friendly gift guides to Square’s new AI tools, you can use accessible features that improve sales and efficiency this season.
What shoppers will actually do with AI this season
I’ve noticed myself relying on AI more with every online purchase; it’s almost second nature now. And it’s not only me, with the majority of shoppers leveraging AI to help them shop. Whether it’s comparing prices, summarizing reviews, or asking for the “best gifts for mom under $50,” AI assistants are helping shoppers cut through choice overload and inflation pressures. This season, shoppers are letting AI do the heavy lifting.
Use AI to find deals and gift ideas
The Talkdesk report says that three in four US consumers plan to use AI to find deals this holiday season, and two in three will use it for gift ideas. Add to the fact that ecommerce is set to outpace stores again in the US, with online sales expected to rise about 7.9% year-over-year (YoY) versus 2.3% in store, so expect more shoppers to start digitally even if they finish in person.
What this means for you
- Shoppers expect help choosing gifts, not just a product grid.
- AI assistants reward listings that clearly answer “who is this for” and “why is it worth it.”
- Gift-specific FAQs and filters help your site match how people phrase AI prompts.
Add this to your strategy
- Add conversational filters like “Gifts for Dad under $100.”
- Add two-sentence FAQs (“What makes this a good gift for Dad?”).
- Build niche guides, like “gifts for beginner bakers under $50”, that echo natural-language queries.
I have outlined steps on how to create a gift guide in a separate article. To help your store appear in AI search and assistants, you can also follow the steps I outline in my article, AI search for ecommerce — validate schema, allow search bots, and add merchant feeds. Just plan for higher AI usage in general. Accenture reports 66% of consumers used generative AI in the past three months, and 77% plan to use it for holiday shopping.
Did you know? AI-optimized gift guides are getting a fresh push. Editors favor specific, niche guides that match conversational queries, such as gifts for beginner bakers under $50. Brands are pitching selective outlets and Substacks to earn placements that help both sales now and long-term generative engine optimization (GEO) visibility.
Summarize reviews and compare products faster
Deloitte data shows that among shoppers, 56% plan to use AI to compare prices and 47% to summarize reviews. Make this easy by adding short comparison tables and key review summaries on product pages. The Accenture report finds 76% of shoppers feel overwhelmed by too many choices, and 85% say they are likely to abandon carts due to frustration. Clear comparisons reduce that risk.
What this means for you
- Shoppers want quick clarity, not long scrolls.
- If your site doesn’t summarize key pros and cons, AI tools may do it for them and send traffic elsewhere.
- Transparent prices and return details reduce cart abandonment.
Add this to your strategy
- Add a short review-summary box on each product page.
- Create comparison tables (your item vs similar ones) listing the top six attributes buyers ask about.
- Include price-match or guarantee language.
- Place returns, exchanges, and shipping info in a short bullet block near the “Add to Cart” button.
Start the journey inside assistants and AI search
Salesforce estimates AI-powered recommendations will influence approximately $263 billion in online orders, and 7% of shoppers now start product searches with AI chat assistants. Adobe reports ~4,700% YoY growth in AI-referred shopping traffic heading into July 2025. Meanwhile, Accenture advises shifting to GEO with natural-language attributes and FAQ-style copy. Gift guides built around real questions tend to earn assistant snippets and long-tail traffic over time.
What this means for you
- Assistants need clean, current product data and plain-English attributes to recommend you.
- FAQ-style content, schema, and fresh feeds are table stakes.
- Niche gift guides that mirror real queries (“who + interest + budget”) compound long-tail traffic and assistant visibility.
Add this to your strategy
- Start by running a quick GEO checklist: make sure your structured data (Product, Offer, and FAQ) validates correctly, keep prices, stock, and shipping details up to date through your product feeds, use natural-language attributes that reflect how shoppers actually search, like fit, use case, age range, or materials, and confirm that your robots.txt file allows reputable crawlers.
- Next, focus on content upgrades. Publish three to five niche gift guides based on real search questions and include a short FAQ or mini comparison block in each. Add a Q&A section to every product page that answers the top three buyer questions in complete sentences.
What retailers are rolling out right now
While consumers are leaning on AI for smarter decisions, retailers are racing to keep up — and some are setting new standards for personalization and service. Big players like Walmart, Amazon, and Target have all expanded AI-driven search, personalization, and AR tools ahead of the holidays.
I’ve spoken with small store owners trying lighter versions of the same tech, using AI to forecast demand, write product copy, or even create gift bundles automatically. These aren’t out-of-reach experiments anymore; they’re becoming standard tools that even small retailers can use today.
In-store AI helpers and immersive shopping
Walmart’s 2025 holiday rollout shows where the market is heading. The retailer’s app now includes In-Store Savings, enhanced search with aisle location, wish lists sorted by aisle, AI party planning, AI audio summaries for beauty, and AR experiences like Shop the Background and Dynamic Showroom.
What this means for you
- Big-box retailers are normalizing AI-assisted shopping experiences that merge online convenience with in-store interaction.
- Shoppers will expect smoother store navigation, faster checkout, and helpful digital touchpoints.
- Even simple tools, such as QR codes, pickup options, or short demo videos, can make your store feel modern without major tech spend.
Add this to your strategy
Use a QR code at your entrance or checkout counter that links to an FAQ or gift-finder page. Offer mobile checkout or curbside pickup during busy hours. Record 60-second demo videos showing best-sellers in use. Focus on frictionless experiences: Accenture found that easy returns and helpful staff cut holiday shopper stress that often leads to cart abandonment. Finally, train your floor staff to use basic AI lookup tools for sizing, stock, or product alternatives — four in five frontline workers say they would use AI for quick answers.
AI-optimized gift guides as a discovery channel
Gift guides are no longer limited to Q4 promotions. They now act as discovery tools for assistants and search engines, surfacing all year when people ask for best gifts for a new mom or gifts under $50 for gamers. They work because they combine human curation with AI-friendly structure — clear who-it’s-for language, real price limits, and concise pros and cons.
What this means for you
- Gift guides are your low-cost path into AI discovery. Assistants index them as answers, not ads.
- When optimized correctly, they drive recurring organic and assistant-sourced traffic well beyond the holiday rush.
- Modern Retail reports brands now pitch highly specific guides (e.g., “gifts for beginner bakers under $50”) to boost both visibility and GEO ranking.
Add this to your strategy
Create guides that answer real, long-tail search questions and feature six to 10 curated products per theme. Include a short FAQ and a simple comparison or “best-for” block for context. Track guide performance — assistant referrals, time on page, and click-throughs to product detail pages — and update the winning ones quarterly to stay visible year-round.
Agentic commerce is moving from concept to practice
Agentic commerce refers to AI agents that handle parts of the shopping process autonomously—building lists, comparing products, and completing transactions. Payments providers like Mastercard are preparing standards for secure, agent-driven checkouts and trust verification, making it easier for shoppers to transact safely through AI intermediaries.
What this means for you
- AI agents are the next evolution of shopping automation; they’ll expect reliable, structured product data.
- Early adopters will gain visibility when agents start managing holiday wish lists and reorders.
- Small retailers that keep their feeds current and policies transparent will be “agent-ready” sooner than competitors.
Add this to your strategy
Audit your product listings for complete specs, consistent pricing, and return policy details. Use structured data and trusted payment integrations (PayPal, Square, Stripe) to simplify agent-based orders. For setup guidance, review my Agentic Commerce guide, which breaks down how to prepare your site and data feeds for this next stage of automation.
How to use smart AI tools right now
As big retailers roll out AI across search, fulfillment, and customer engagement, you can tap into similar capabilities without big budgets. Many of the same efficiencies — inventory forecasting, staffing optimization, and faster customer response — are now available through plug-and-play tools that don’t require coding or consultants.
The next few strategies show how you can apply AI right away to manage the holiday rush.
Plan inventory and staffing for peak hours
One of the simplest AI wins comes from smarter forecasting. Square AI blends your sales data with local signals — like weather, community events, and customer reviews — to help you to predict when demand will spike and how much staff or stock you’ll need. This helps you order the right amount of inventory and schedule shifts more efficiently instead of guessing based on last year’s numbers. Learn more about Square AI.
Keep orders flowing with voice AI
Phone orders can pile up during peak shopping hours. Square Voice AI automatically answers calls, takes orders, and sends them directly to your POS system, freeing your team to focus on customers in-store.
Turn insights into action on mobile
You don’t need to be tied to the counter to stay on top of your business. Square Dashboard now includes AI-powered insights that surface directly on mobile, so you can see what’s trending, what’s running low, and which bundles are outperforming last year, all in real time.
Holiday AI tools for small retailers: Quick picks
Compare small-business-friendly AI tools for holiday shopping, including use cases, pros, cons, and estimated costs to help you pick the right fit fast. The tools I recommend below are available to common ecommerce platforms most small businesses already use.
Tool | What it is best at | Pros | Cons | Rough cost |
|---|---|---|---|---|
Local demand insights, staffing prompts, voice ordering | Uses weather, events, and reviews; mobile insights; captures phone orders | Voice minutes can add cost | Included with Square plan fees and processing; Voice Ordering may be an add-on | |
Fast product copy, FAQs, basic admin help | Included on paid plans | Advanced automation needs apps | Included with Shopify plans | |
AI product imagery for Shopping | Free and native to Merchant Center | Limited creative control | Free |
Bottom line
AI is already shaping discovery, comparison, and checkout. Small retailers do not need a big-box budget to benefit. As AI continues to evolve, small retailers who start experimenting now will have an edge when these tools become standard for every shopper.
Ready to try these ideas without new systems or a big budget? Visit Square to turn on forecasting, voice ordering, and mobile insights today.
