Young Shoppers Embrace Artificial Intelligence for Gift-Giving and Bargain-Hunting This Season
- As the holiday season nears, retailers are shifting strategies to cater to Gen Z’s growing reliance on AI for shopping.
- A recent survey reveals that Gen Z shoppers are not only planning to spend more but are also integrating AI tools to enhance their shopping experience.
- Retailers are responding by investing heavily in AI and targeted marketing to meet the evolving expectations of young consumers.
The holiday shopping season is upon us, and this year, the approach to capturing consumer attention is undergoing a major transformation. Retailers are increasingly focusing on Generation Z, whose expectations and shopping habits are driving a new wave of innovation. Forget traditional browsing and buying; Gen Z shoppers are turning to artificial intelligence to guide their holiday purchases, and this shift is reshaping how businesses approach the season.
A new survey by Fiverr, encompassing over 2,500 consumers and 2,500 small-to-medium business leaders from across several countries, highlights a significant trend: Gen Z shoppers are embracing AI in their holiday shopping strategies. According to the survey, 43% of Gen Z shoppers plan to spend more this year, with more than half intending to use AI as a shopping assist. This marks a notable departure from traditional shopping methods, as young consumers increasingly rely on AI tools for price comparisons, gift suggestions, and even personalized holiday ideas.
For many Gen Z shoppers, AI tools like ChatGPT have become indispensable. University of Pittsburgh student Brooke and her peers exemplify this trend, using AI to generate gift ideas and find the best deals. “I use AI too with the generators and stuff for ideas,” Brooke explained. “If I need ideas, like stuff to get my dad for his birthday, I don’t know what to do.” This sentiment is echoed by other students who leverage AI to streamline their gift-giving process, making holiday shopping more efficient and personalized.
Retailers are keenly aware of this shift and are adjusting their strategies accordingly. Laura Podesta, public relations manager at Fiverr, notes that AI is becoming a crucial tool for connecting with Gen Z consumers. “Some Gen Z-ers said that they plan to use ChatGPT to find the best prices,” Podesta said. “Some are using AI to search for gifts, perhaps, put in, ‘What can I get my aunt who’s age 50,’ and then they’re getting a list of ideas.” This approach not only enhances the shopping experience but also allows retailers to target ads and promotions more effectively.
In response to these evolving preferences, businesses are ramping up their investment in AI and digital marketing. According to Podesta, 70% of businesses are planning to invest in AI, while 39% are increasing their social media advertising efforts and 35% are focusing on influencer marketing strategies. These investments reflect a strategic shift towards aligning with the digital habits of Gen Z consumers, aiming to capture their attention through the channels they frequent and the technologies they use.
As AI continues to integrate into various aspects of daily life, its role in holiday shopping is likely to expand. For retailers, understanding and adapting to these new consumer behaviors is essential for capturing the holiday spirit and driving sales. With Gen Z leading the charge in embracing AI for shopping, this holiday season marks the beginning of a new era in retail, where technology and consumer preferences converge to create a more dynamic and personalized shopping experience.