Coveo Holiday Report Finds Shoppers Turning to AI for Gift Buying
Coveo has published its 2025 holiday shopping report, and the message is unmistakable: shoppers want generative AI (GenAI) to be part of their holiday gift experience. More than 70% of consumers surveyed said they would use GenAI to shop this season. That includes 85% of Gen Z and Millennials, two groups that now set the pace for digital shopping trends. The survey covered 6,000 adults across the U.S., U.K., Australia, and New Zealand and points to a widening gap between consumer demand and retailer readiness.
The data underscores an important shift. Holiday shopping is no longer just about promotions or convenience. Consumers now expect digital tools that simplify choice, cut through noise, and provide fast answers. The findings are both a warning and an opportunity for retailers preparing for the most competitive shopping season of the year.
Consumer Curiosity Becomes Action
In 2024, only 31% of shoppers expressed interest in using a virtual assistant for gift buying. In 2025, that curiosity has more than doubled. Sixty-three percent are now open to the idea, and 72% are willing to use GenAI for help this season. That’s not just idle talk—35% already have tried GenAI for shopping. Among those early adopters, 91% said they plan to do it again. Repeat usage is always the strongest sign of value. Once shoppers experience the time savings, they want it back.
Generational differences are stark. Gen Z and Millennials are leading the way with 85% openness to GenAI assistants. Their expectations are shaping the market faster than older demographics. Retailers who cater to these groups will gain momentum, while those who ignore them risk losing long-term loyalty.
What Shoppers Expect From GenAI
The research shows that consumers are asking AI to do specific jobs. Forty-one percent want help comparing products, 35% want recommendations based on budget, and 31% want more information about products. These are the pain points of gift buying. Shoppers are signaling they don’t want another marketing gimmick. They want useful digital assistance that trims hours off the process and reduces guesswork.
For retailers, this means AI integration should focus on solving problems, not just generating buzz. A chatbot that suggests random items won’t cut it. A conversational assistant that can show side-by-side comparisons, flag products in-stock at the right price, and guide shoppers to checkout will be the difference-maker.
Stress Levels Are High, Spending Still Strong
The report reveals another paradox: shoppers are stressed but still spending. Eighty-six percent said they are worried about holiday shopping, yet 73% plan to give as much or more than last year. Younger shoppers feel the most strain—96% of Gen Z and 92% of Millennials reported significant concern about cost, timing, or choosing the right gift. Even with those pressures, gifting remains central to the season. People are willing to adjust in other areas to protect their ability to give.
This means retailers must strike a balance. Discounts remain important, but clarity and guidance may matter even more. If AI can reduce uncertainty—whether about delivery timelines, price ranges, or suitability of gifts—shoppers may be more willing to buy from that retailer rather than switching to a competitor.
Omnichannel Expectations Are Standard
The data shows that 83% of consumers will shop online, 61% will shop in-store, and 44% plan to split evenly between both. That’s not a preference for one channel over the other—it’s a demand for both to work together. Shoppers want seamless transitions between digital browsing and in-person pickup. If one side of that experience fails, the entire brand perception suffers.
Search engines and retailer websites remain the first stop for 34% of shoppers, while another 34% start on marketplaces. That means discovery is fragmented. Retailers must invest in both SEO (Search Engine Optimization) and AI-driven discovery to ensure their products surface wherever consumers begin their search.
Black Friday and Cyber Monday Still Set the Standard
Despite predictions of shifting habits, Black Friday and Cyber Monday remain dominant. Eighty-eight percent of shoppers globally plan to participate, with 91% in the U.S. Retailers that treat these events as routine discounting exercises risk blending into the noise. The new competitive edge will come from personalization. Using GenAI to suggest relevant promotions, highlight trending gifts, or bundle offers could separate one retailer from another in a crowded field.
Personalization Is Rising in Value
The report points out that 38% of shoppers want personalized or custom gifts. That’s the most popular gift category this year. People want gifts that feel thoughtful rather than generic. GenAI can help here by analyzing preferences, suggesting unique options, and making the shopping process more personal. Retailers who integrate this functionality stand to gain both sales and goodwill.
What Retailers Must Focus On Now
AI Integration
Retailers should prioritize practical GenAI tools that directly reduce shopping friction. This includes product comparisons, price-based filtering, inventory awareness, and conversational gift guides. Half-measures won’t be enough—consumers already know what good looks like from their experiences with other AI tools.
Inventory and Delivery Transparency
Shoppers are concerned about delivery timing. Clear inventory visibility, reliable shipping estimates, and proactive alerts can reduce this anxiety. Retailers who communicate effectively will stand out from those who hide details until checkout.
Budget-Friendly Options
With 66% of shoppers saying cost most shapes their brand perception, price will continue to drive decisions. Retailers should prepare promotions that feel meaningful without eroding margins. Bundled offers, AI-assisted discount recommendations, and loyalty rewards can make pricing strategies more effective.
Omnichannel Consistency
The experience across online and offline channels must be consistent. Shoppers will expect to browse online, reserve in-store, and return through either channel. Systems that fail to connect those experiences will frustrate buyers and push them elsewhere.
Coveo’s 2025 holiday shopping report highlights a moment of change. Consumers are ready for GenAI in holiday shopping, and they are clear about how they want to use it. Retailers who hesitate may miss one of the biggest shifts in consumer behavior in recent years. Retailers who adapt quickly—by implementing AI tools that simplify decision-making, reduce stress, and personalize experiences—stand to capture loyalty during the busiest season of the year. For shoppers, this holiday season may be remembered as the year AI stepped in to make gift buying less painful. For retailers, it will be remembered as the year the stakes changed.