AI Shopping Drives $263 Billion in Holiday Sales as Walmart and Target Race to Integrate ChatGPT

AI shopping could drive $263 billion in holiday sales. Walmart and Target are racing to get in

Holiday shopping has always felt like a "chore" for Amrita Bhasin. Between deciding what to buy, comparing prices and checking reviews, the 24-year-old retail tech CEO said she spent more than 15 hours each year buying gifts for her friends and family, a process that took the joy out of giving. But this year, Bhasin said she did all of her shopping in a fraction of the time and even had a little "fun" -- all thanks to her new personal assistant: ChatGPT. "I feel like I've got that physical store associate that I'm talking to, so I feel like I'm getting better recommendations. I actually think my tendency to buy is higher because of ChatGPT," Bhasin, based in Menlo Park, California, told CNBC. "It has really changed the game." Bhasin is one of the many shoppers turning to AI platforms like OpenAI's ChatGPT, Google's Gemini and Perplexity this holiday season to help them buy gifts for their loved ones, and maybe a few for themselves, too. Whether consumers use them to get gift ideas or compare prices, AI platforms are poised to reshape the shopping experience and drive billions in revenue this holiday season as it becomes harder to get discovered on traditional search platforms. In a report published last month, Salesforce said it expects AI to drive a staggering $263 billion in global online holiday sales this year, representing 21% of all holiday orders. Though estimates vary widely, surveys conducted by Visa, Zeta Global and other organizations found that between 40% and 83% of consumers plan to use AI for shopping this holiday season. Meanwhile, AI traffic to U.S. retail sites surged 760% between Nov. 1 and Dec. 1, according to Adobe. While AI shopping is in its early stages, initial reads on how shoppers are interacting with it show the opportunity it can bring for retailers. Shoppers arriving on retail websites from generative AI platforms are 30% more likely to buy something and about 14% more engaged than those coming from non-AI sources, meaning they're spending more time on the site and are less likely to leave immediately, Adobe found. These AI-fueled shopping visits now generate 8% more revenue per session, the firm found. AI tools can also help shoppers spot deals and aid lesser-known brands in getting discovered -- about half of the gifts Bhasin bought this year came from brands she'd never shopped before. "It's where consumers are going, because they're just asking questions around, like, 'Hey, where can I find the best gift under $20 for my niece that cares about these things?'" said Kimberly Shenk, the founder and CEO of Novi, a tech firm that helps brands adjust to AI shopping.

AI Is Changing Last-Minute Gift Buying. Here's Exactly How to Get Your Product Included in AI Results

When Pablo Fourez set out to find the perfect gift for his wife, he took inspiration from her newfound interest in the Chinese tile game Mahjong. But when scavenging to find the perfect set for Christmas, Fourez, who is the Chief Digital Officer at Mastercard didn't turn to friends or the internet for help -- he turned to Chat GPT. "I had to research it, because I don't know anything about the game," Fourez says. "It's really a very big help for consumers." Fourez is not alone. A recent Salesforce analysis found that AI and AI agents drove $67 billion in Cyber Week sales this year. And Inc.'s Jason Aten recently referenced Black Friday sales data published by Adobe, which shows "AI-generated traffic to retail sites jumped 805 percent year-over-year. Not only are people using AI tools to find deals and compare products," he writes, "but also shoppers who landed on a site from an AI assistant were 38 percent more likely to convert than everyone else." AI companies and retailers alike are also taking note of the potential, with Walmart, Etsy, Stripe, and Shopify launching partnerships for checkout within ChatGPT. In November, OpenAI rolled out a new shopping research feature within ChatGPT, which, among other things, comes up with gift ideas and researches them for users. Similarly, Google's Gemini has also introduced new features to streamline the shopping process, like checking prices and availability nearby, and developing gift ideas conversationally.

Here's how AI is helping holiday shoppers

Waste less this holiday season with smart ways to reuse and choose sustainable decor and gifts. More shoppers are using AI this holiday season - whether they are utilizing the technology on purpose or not. The usage of AI to aid in finding gifts and tracking prices has skyrocketed this holiday season as the technology continues to advance and people's comfort level with AI increases. "Consumers are researching and they're price comparing," Katherine Black, a partner at global management consulting firm Kearney where she leads food, drug and mass market retail, told USA TODAY. "They're getting gift ideas.'' The major growth of AI has been as a referral channel, leading consumers directly to retailers' links to purchase items, she said. AI options include ChatGPT, Google's Gemini and AI built into retailers' own websites. AI usage has increased More than half of shoppers or 53% who were surveyed recently by CouponFollow said they have used or plan to use AI tools or services for their holiday shopping this year. Nearly 7 in 10, or 69%, said they believe AI is more helpful for shopping compared to traditional methods, such as flyers or loyalty emails. USA TODAY was given an exclusive look at the CouponFollow study. A report on the Generative AI landscape by Similarweb in November reported that generative AI platforms saw a 76% increase in web visits year-over-year and a 319% surge in app downloads. Over the five-day Thanksgiving to Cyber Monday period, Similarweb said AI referrals to top retailers was 9.3 million or up 274% from last November and converted total visits (resulting in a purchase) were up 14.7% from last November. Deal seekers are using AI for shopping AI tools are improving in offering gift ideas, especially if users have already been using them and the technology can use previous interactions to build from, said David Schweidel, a marketing professor at the Goizueta Business School at Emory University in Georgia. His research specializes in marketing technology and AI. One of the easiest ways that AI is being used is looking for deals and best prices, Schweidel told USA TODAY. AI can check coupon codes to see which ones are actively working, he said. "The way you would have had to do that before is go back and forth between your browser windows or your browse tabs to test this code out," Schweidel said. "Now you can kind of outsource that activity to an (AI) agent." AI's underlying systems and people's comfort level with AI are both increasing, said Black. A key reason is that people are getting used to AI being a part of various aspects of their lives. "Shopping is a piece of that and right now what they're doing is primarily researching, generating ideas, (and) price comparing," she said. There's also a range of users, from people who are very comfortable using the AI technology to others who may be using it to track prices of a product or setting a price alert and not realizing they are using AI, said Black. How does AI differ from a search engine? Using AI is different than putting in some terms in a search engine, said Schweidel. "AI is going to be completely different because the more you give it to go on, the better your results are going to be,'' he said. "So chances are that the first response you get isn't going to be great, but what you need to do is override the desire to say 'OK, I'm just going to quit.'" "Really, it's a dialogue," he said. AI can raise privacy concerns However, privacy can be a concern for AI users. "If you're the kind of person that wants to have as much privacy as possible, you shouldn't be on social media, you shouldn't be using Google and you definitely should not be using AI," Schweidel said. "Where most people end up landing is they're OK sacrificing a little bit of privacy because of the convenience that these types of tools offer." But it's a good idea to keep personal information, like a person's address or name, off AI tools, said Black. AI growth and usage will continue AI's growth and usage among consumers will continue to grow, said Black. "We're seeing a broad range and the very first adopters who are using it for almost everything are really tech savvy,'' said Black. "But the next group of shoppers who've really started to adopt this technology aren't necessarily big tech engagers. They're people who are looking to save money and to feel like they got the best deal." Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.

Conversational AI Becomes New Front Door for Holiday Shopping | PYMNTS.com

Retailers expect AI-assisted commerce to play a larger role in how consumers discover, evaluate and purchase products. To prepare, merchants reworked product data, payments infrastructure and discovery systems as conversational tools increasingly shape the path to purchase. As Karen Webster, CEO of PYMNTS, wrote, " Systems designed for human attention and human decision cycles are now interacting with autonomous agents that operate with far more context, speed, precision and consistency than people ever could." That shift is forcing retailers to rethink commerce experiences that were built around search bars, scrolling and clicks, and to adapt for environments where AI intermediates the shopping journey. Retailers are treating conversational interfaces as a new commerce surface where content, discovery and payments converge. PYMNTS Intelligence found that 42% of shoppers used AI assistants during Black Friday to find discounts, 35% to track prices and 31% to compare products. Major retailers are already moving in that direction. Walmart, Target and Etsy have integrated with OpenAI to enable shopping inside ChatGPT, while smaller merchants are restructuring product listings to surface in AI-generated answers rather than traditional search results. Nik Sathe, CTO of Blackhawk Network, framed the shift as spanning the entire customer journey. "When I think about AI, I really think about it in three categories: helping consumers find the right product, helping them transact, and then helping them use what they've purchased," he told PYMNTS. As conversational shopping scales, retailers are moving away from keyword-driven search optimization toward richer, context-aware product data. Target told CNBC that conversational phrasing now accounts for about 25% of customer searches, prompting the retailer to expand product descriptions with contextual details such as sustainability attributes, use cases and seasonal relevance. Prat Vemana, Target's chief information and product officer, said the company is publishing richer merchandise descriptions to improve visibility inside AI-generated responses. In November, Target announced that customers could complete multi-item purchases, including groceries, directly through ChatGPT. The company said thousands of shoppers have already used its AI-powered Gift Finder, with early results showing higher engagement and larger average cart sizes. As reported by PYMNTS, Walmart also announced a similar partnership with OpenAI in October as part of a broader shift toward AI-native commerce. Amazon has taken a different path, developing its own proprietary AI shopping assistant, Rufus, rather than integrating with third-party conversational platforms. The company said more than 250 million customers have used the assistant this year. Smaller brands are also adjusting ahead of the holiday rush. Michael Wieder, co-founder of baby goods retailer Lalo, told CNBC his team now structures product listings around the questions consumers are likely to ask AI assistants. Instead of emphasizing specifications alone, Lalo incorporates phrases such as "good for small spaces" to align with conversational queries that drive AI discovery. Beyond discovery, retailers are also preparing for AI-native checkout flows that compress discovery and transaction into a single interface. OpenAI launched Instant Checkout with Etsy in September, enabling single-item purchases without leaving ChatGPT. The AI chatbot has since expanded its integrations with Shopify merchants, including Skims and Vuori, and charges transaction fees on purchases made on its platform. As retailers experiment with AI-driven discovery and checkout, Sathe cautioned that consumer trust will shape how far automation can go during the holidays. While shoppers may welcome assistance with repeatable, low-stakes purchases, they remain wary of surrendering judgment on more personal decisions. "Consumers will want the convenience of having an agent do things for them, but they're not going to give up control entirely," he said. "Some purchases are objective and repeatable; others are subjective and personal." That distinction is already influencing how retailers deploy AI ahead of peak season. AI tools are gaining traction where speed, price comparison and replenishment matter most, while traditional browsing remains dominant for categories tied to taste, fit and preference. Sathe said the shift will be incremental rather than disruptive, with merchants layering AI into existing journeys instead of replacing them outright.