How are consumers planning to spend during the upcoming holiday season?

Eighty-seven percent of shoppers plan to spend the same or more, an increase from last year, largely influenced by higher prices.

What impact is AI having on consumer shopping decisions?

Generative AI adoption has jumped to 66%, as consumers use AI tools to overcome choice overload and get personalized recommendations.

What is the role of physical stores in modern holiday shopping?

Physical stores remain relevant, with three in ten consumers visiting them for inspiration and a hands-on product experience.

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AI Transforms Holiday Shopping: Chatbots Guide Choices

26 Nov

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Summary

87% of shoppers plan to spend the same or more this holiday season.
76% of consumers feel overwhelmed by product choices, favoring AI.
Gen AI adoption for shopping assistance jumped to 66% in three months.

AI Transforms Holiday Shopping: Chatbots Guide Choices

Consumer spending is projected to remain steady or increase for the upcoming holiday season, with 87% of shoppers indicating their intent to spend at least as much as last year. This uptick in planned expenditure is largely attributed to increased pricing rather than a rise in purchased units. Millennials and Gen X are expected to spend significantly, though this is influenced by inflation.

The overwhelming abundance of product choices and promotions is leading to decision fatigue among 76% of consumers. To navigate this, shoppers are increasingly turning to Generative AI tools. The adoption of these AI assistants has dramatically risen to 66% in the past three months, up from 39% a year ago, highlighting their growing role in product discovery and research.

Retailers are adapting to this new landscape, where being found through AI-powered recommendations is crucial. Physical stores also retain importance, with three in ten consumers still valuing them for inspiration and tactile experiences. Additionally, the well-being of retail staff is a growing concern, as 70% of frontline workers report stress heading into the busy holiday period.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.