First Insight Research Flags Large Numbers of Holiday Shoppers Using Social Media and AI Tools This Year

Retail Technology Innovation Hub Mentions First Insight | First Insight Research Flags Large Numbers of Holiday Shoppers Using Social Media and AI Tools This Year

A new First Insight report reveals that a majority of holiday shoppers plan to use social media (57%) and AI tools (39%) to make shopping easier this year - from researching gift ideas and discovering sales.

1,145 Americans were surveyed for this.

While 42% are set to checkout directly through social media, shoppers are increasingly looking to AI as their holiday “one-stop-shop,” with 68% of those using tools such as ChatGPT, Gemini and Claude making purchases directly through them. This shift towards AI driven shopping is especially prevalent among Gen Z shoppers, with 73% saying they’ll use AI for everything from product discovery to purchase.

For many shoppers this holiday season, AI will work as a personal assistant, delivering tailored product recommendations and finding sales and promotions, which is especially important as many consumers approach their shopping with a stronger focus on budgeting.

74% will spend the same or less than last year, with 41% planning to buy fewer items overall and 23% actively seeking deals. 80% of shoppers say they would need at least a 15% discount to consider buying a product this year.

Among the findings: 

• Price and convenience continue to drive shopping behaviour, both in-store and online. Consumers cite price/deals (58%) and ease of shopping/convenience (47%) as their top reasons for shopping in-store, with the same factors (55% and 47%, respectively) motivating online purchases.

• Consumers are worried packages may not arrive on time, and are willing to pay more to ensure they do. 57% of consumers are concerned about shipping delays this holiday season (up from 48% last year). 86% are they’re willing to pay for shipping, with 17% willing to pay over $20.

• Gift cards will be a go to option to stay within budget. 68% of consumers plan to purchase gift cards this year, up rom 64% in 2024. 62% will purchase more gift cards this year than last, as a way to manage spending.

• Consumers are leaning into essentials, purchasing more apparel and personal care items. In stores, shoppers plan to purchase athletic footwear (27%), casual apparel such as jeans and button-downs (26%) and beauty or personal care items (24%).

  Online, athletic footwear (27%) and casual apparel (29%) are the top categories, alongside entertainment and electronics items such as movies, music, books and board games (27%), and tech gadgets or video games (29%). 65% of consumers do not plan to purchase luxury items at all this holiday season.

• Facebook and TikTok are the top social platforms used to discover and shop for gifts. For holiday shopping research, consumers turn to Facebook (59%), TikTok (54%) and YouTube (52%) the most. Facebook and TikTok lead the way (59% and 54%, respectively) when it comes to completing purchases, followed by Instagram (47%).

• Big box retailers hold their lead as preferred stores for holiday shopping. 26% of consumers prefer to do their holiday shopping at big box retailers like Walmart and Target, followed by e-commerce marketplaces (15%) and outlet stores (10%). 

“This holiday season marks the moment AI truly enters the shopping aisle,” said Greg Petro, CEO at First Insight. “Consumers aren’t just using it to search - they’re buying through it. At the same time, they’re more cautious about spending, focusing on price, value, and convenience. Retailers that listen to their customers and adapt quickly to these new buying behaviours will be the ones building loyalty that lasts long after the holidays.”

Read article on Retail Technology Innovation Hub.