Research from Coveo has found that the use of generative artificial intelligence for Christmas shopping is set to increase sharply amongst British consumers this year.
The firm's 2025 Holiday Shopper Report surveyed 6,000 shoppers across the UK, United States, Australia and New Zealand, and its findings indicate a pronounced shift in how shoppers are approaching the festive season. According to the report, 71% of Brits say they would use GenAI to help select gifts this Christmas, more than double the 31% reported in last year's survey.
Contrary to perceptions that technology erodes the personal touch in gift giving, the research suggests that consumers are leveraging AI primarily to streamline the shopping process, find the best deals, and manage their budgets. The survey highlighted that Britons are under notable financial pressure, with 85% expressing concerns about Christmas shopping, a figure likely influenced by the ongoing cost of living challenges in the UK.
Shoppers stick to budgets
Despite these concerns, the majority of shoppers intend to maintain or even increase their spending. The study found that 75% of UK participants plan to give more, spend more, or keep their gifting levels unchanged compared to last year. This is in line with a broader adoption of digital tools, including GenAI, which many respondents say helps them find the right gifts within their personal financial constraints.
Physical retail, meanwhile, remains resilient. The report found that 55% of shoppers plan to conduct at least part of their Christmas purchasing in brick-and-mortar stores. Sale events also retain their popularity, with 87% of Brits intending to make purchases during Black Friday and Cyber Monday in an effort to secure gifts ahead of the holiday rush.
GenAI usage widespread
When asked how they would most value the support of GenAI in holiday shopping, respondents identified a broad set of tasks. The most common uses cited were product comparison on features, price, and reviews (39%), recommendations within a set budget (36%), and acquiring more information about products (28%). Additional desired AI functions included generating gift inspiration when unsure what to buy (26%), helping build a shopping list within budget parameters (24%), and personalising gift ideas based on recipient age or interests (23%).
Openness to GenAI varies across age groups, although acceptance is high in all categories. Among Generation Z (aged 13–28), 88% are willing to use AI shopping assistants, with Millennials (aged 29–44) close behind at 87%. Two-thirds of Generation X (45–60) expressed similar intentions (68%), while 52% of Baby Boomers (61–79) showed readiness to adopt the technology. Even among the oldest cohort surveyed (80+), more than a third (37%) are open to AI-assisted holiday shopping.
"Consumers are not just open to GenAI in their shopping journeys, they're actively seeking it out. The industry has seen some early experimentation, but retailers have been hesitant to fully embrace GenAI-powered shopping tools. This report clearly signals a significant missed opportunity for retailers to truly differentiate themselves, reduce shopper stress, and drive conversions this holiday season by leaning into intelligent, conversational discovery," said Peter Curran, GM of Commerce at Coveo.
Shopping channels
The report also noted that many shoppers begin their hunt for Christmas gifts online, with 40% of Brits starting on a marketplace or a known retailer website. Globally, the research observed a split, with around a third of consumers beginning their search on either general search engines or AI assistants, and another third on marketplaces or direct retailer sites.
The data points to an ongoing evolution in retail, with digital technology and traditional retail channels both playing significant roles in consumers' festive preparations. Retailers are presented with both challenges and opportunities as shoppers across generations turn to new tools - including generative AI - to enhance their purchasing decisions amid ongoing economic uncertainty.
