AI and holiday shopping: How technology is revolutionizing the season

AI Joe (Joe Finkelstein) has been a technology educator in Bibb County Schools for over 20 years. 

Personalized gift recommendations

One of AI’s most impactful contributions to holiday shopping is its ability to provide tailored gift suggestions. Platforms like Amazon, Etsy and eBay use advanced recommendation engines to analyze your browsing and purchase history, as well as the preferences of similar shoppers, to suggest products you might not have considered. AI even scans your online behavior — such as searches, wish lists, and saved items —to predict what would resonate with you or your loved ones.

For example, Etsy’s algorithms can identify unique, handcrafted gifts that align with your aesthetic preferences, while Amazon’s system often highlights trending items within your budget. Beyond these platforms, AI tools like Pinterest and Instagram integrate shoppable ads, guiding you toward personalized gift ideas based on your scrolling habits.

For those who feel stuck in the endless sea of options, AI-powered gift guides, such as those offered by Google Shopping or personalized recommendation apps, can filter through countless products to find that one special item.

Virtual shopping assistants

AI-driven virtual shopping assistants are becoming indispensable tools for busy holiday shoppers. Whether it’s Amazon’s Alexa or Google Assistant, these helpers can create shopping lists, set reminders for sale events and even suggest popular gifts in real time. For instance, by saying, “Alexa, what are the best deals on holiday gifts today?” you can receive curated suggestions and links to purchase instantly.

Chatbots are also elevating customer service during the holiday rush. Many retail websites employ AI chatbots to answer common questions, help locate items, and even process returns. These bots work 24/7, providing instant assistance and saving precious time.

Tools like Honey and Capital One Shopping use AI to monitor price changes, alert you to discounts and even automatically apply coupon codes at checkout. These extensions turn every online shopping session into a hunt for the best possible deal.

Streamlining online shopping

Gone are the days of endless scrolling to find what you’re looking for. AI-powered search engines now enhance online shopping by delivering more accurate results based on your keywords and preferences. Retailers like Walmart and Target employ AI algorithms to make their search functions more intuitive, suggesting products that fit your exact needs.

AI has also revolutionized the way we shop for clothes and home goods. Virtual fitting rooms, powered by augmented reality (AR), allow you to see how clothes will look and fit without stepping into a store. Platforms like Sephora use AR to let shoppers try on makeup virtually, while IKEA’s AI-driven AR app shows how furniture will appear in your living space.

These innovations don’t just save time—they add a layer of confidence to purchases that might otherwise feel risky. You can avoid the dreaded post-holiday returns by using AI to make smarter buying decisions upfront.

Managing budgets and finding deals

Holiday shopping often comes with a financial strain, but AI tools are here to help. Apps like Mint and You Need a Budget (YNAB) use AI to analyze your spending habits, categorize your purchases, and alert you when you’re nearing your limits. Some even let you set specific budgets for holiday spending and track your progress in real time.

AI is also a powerful ally in finding the best deals. Dynamic pricing — a practice where retailers adjust prices based on demand — can make it hard to know when to buy. AI-powered deal trackers like CamelCamelCamel for Amazon or PriceBlink monitor these fluctuations and notify you when prices drop.

Additionally, subscription services like Rakuten or Honey Rewards help you earn cashback on purchases, adding a bit of financial relief to your holiday shopping spree.

AI in sustainability

As the world grows more eco-conscious, AI is playing a vital role in making holiday shopping more sustainable. Many retailers now use AI to optimize their supply chains, reducing waste by improving inventory predictions and minimizing excess production. This means fewer unsold items end up in landfills.

AI also helps shoppers make greener choices. Apps like DoneGood highlight eco-friendly brands, while tools like Lyst filter products based on sustainability criteria. Some services even suggest local gift options, cutting down on the environmental impact of long-distance shipping.

By aligning holiday shopping with sustainability goals, AI allows us to celebrate the season while being mindful of our planet.

Conclusion

AI has brought a new level of efficiency and personalization to holiday shopping, allowing us to focus more on the joy of giving and less on the stress of finding the perfect gift. Whether it’s through personalized recommendations, virtual assistants or budget-friendly tools, AI helps streamline the process and even makes it a bit more fun. And with its contributions to sustainability, AI is shaping a future where holiday shopping can be both convenient and responsible.

This season, consider embracing these AI-powered tools to simplify your holiday to-do list. You might just find that perfect gift with less stress — and more time to enjoy the magic of the holidays.

For questions or comments, you can email AIJoe.superhero@gmail.com.