AI shopping for the holiday season: how retail is using AI in 2025

Large retailers and tech companies have launched new artificial intelligence tools in time for the holiday season to simplify gift selection and increase the share of online sales.

Artificial intelligence has become a key theme of holiday shopping, with Walmart, Amazon, Google and others unveiling updated assistants that make personalized recommendations, track prices and handle some of the ordering in a free-flowing dialog format. These solutions complement ChatGPT and Google Gemini, including the ability to automatically call stores to check availability.

Salesforce estimates that AI will impact $73 billion in global sales between the Tuesday before Thanksgiving and Cyber Monday. A year ago, the figure was $60 billion.

The calculation includes any interaction, from ChatGPT requests to prompts on retailers’ websites.

Gartner analyst Brad Jaszynski says the impact of technology is still “relatively limited,” with not all sites offering useful tools, and users getting used to them gradually. He notes that widespread adoption will accelerate audience adoption, but behavioral change will take time.

Search without a search bar

AI retail tools are becoming an alternative to traditional queries and filters.

OpenAI has updated ChatGPT with a shopping research feature. The model generates personalized guides based on product cards, reviews, prices and communication history. This is especially helpful when choosing sophisticated appliances, cosmetics and sporting goods.

Amazon has evolved its Rufus assistant to take into account user-submitted information, such as the fact that a family has four children who like board games. Recommendations are based on browsing history, purchases, and reviews.

Amazon has evolved Rufus to take into account user-submitted information, such as that a family has four children who like board games.

Google has improved AI Mode. The service now responds to complex queries in natural language, such as choosing a sweater for January in New York that matches a skirt or jeans. The database includes 50 billion product items. The tool can generate comparison tables based on price, features, and reviews, which previously required manual filtering.

At Walmart, Sparky’s assistant collects occasion recommendations and summarizes reviews. At Target, an AI gift finder runs in-app during the holiday season that responds to cues about the recipient’s interests and age.

An in-app gift finder that responds to cues about the recipient’s interests and age.

New Price Tracking Tools

Besides familiar services like CamelCamelCamel and the Honey extension, there are built-in solutions this season.

Amazon has launched a 90-day price tracker for most items and an alert system that notifies you when the price drops to a level set by the customer.

Google introduced an enhanced version of its tool: requests can be refined by size, color, or model variant. Microsoft Copilot has also released a similar feature.

Jason Goldberg of Publicis Groupe says the new services will increase pressure on sellers to keep prices competitive. He expects many users will be introduced to automated notifications for the first time.

And he expects that many users will be introduced to automated notifications for the first time.

New Ways to Shop

The AI systems of the big players are aiming for complete autonomy – from search to payment without going to the store’s website.

OpenAI has added an instant payment mechanism for items to ChatGPT. Users can order products from Etsy sellers and brands on Shopify – including Glossier, Skims, and Spanx – without leaving the app.

OpenAI’s ChatGPT app is now available for users to order products from Etsy sellers and brands on Shopify without leaving the app.

OpenAI and Walmart announced a partnership in the fall: through ChatGPT, you can buy almost all Walmart products except fresh produce. For now, the tool works with one item at a time.

In a separate agreement, Target has made it possible to put together a shopping cart in ChatGPT, including groceries. Payment still takes place in the Target app.

Amazon has added an auto-buy feature to Rufus. If the user turns on auto-order mode, the assistant makes a purchase when the price reaches the desired level. The customer is notified and can cancel the order within a limited time. In addition, Rufus search has become a gateway to third-party retailers’ stores: if Amazon doesn’t sell a model, the Shop Direct button leads to the retailer’s website.

Google has added a “buy for me” option to AI Mode: the tool places an order through Google Pay when the price becomes appropriate. The feature works with Wayfair, Chewy, Quince and a number of Shopify merchants.

Google has also extended the browser with automated calls to stores. The AI reports that it is not human, and retailers can opt out. At launch, the technology works for the toy, beauty and electronics categories. Walmart and Target have not commented on plans to include similar services.