Are you doing your holiday shopping in person or online this year? While online shopping has grown tremendously, in-store purchases still dominate with Americans spending about $7 trillion in retail stores compared to $1.2 trillion online last year, according to Capital One Shopping.
Now, artificial intelligence (AI) is changing the way consumers find the perfect gifts and score the best deals.
AI can offer personalized recommendations, price comparisons, and savings opportunities. Unlike generic gift guides, AI tools like Cheerful, co-founded by UC Santa Barbara graduate Ben Revzin, craft highly tailored suggestions based on recipients’ ages, interests, preferences, and price points then show you links to purchase them.
“Basically for Cheerful specifically, AI is taking the interests that you write, it’s like a recipe for a cake,” Revzin explains. “You throw in the interests, you throw in how old your gift recipient is… so your parents’ age or your friend’s age, whatever it is, and then it’s basically creating and thinking up, in real-time, gift ideas for that person. So AI is making it all happen. It’s kind of like the oven.”
If saving money is your priority, these other AI-powered tools can make holiday shopping more budget-friendly as well:
- Honey: A browser extension that automatically finds and applies the best coupon codes at checkout.
- Rakuten: Not only compares prices but also offers cashback on purchases.
- Google Shopping & PriceGrabber: Websites that compare the cost of the same item across multiple retailers, helping you find the lowest price.
For example, a quick search on Google Shopping for trending low-ankle UGG boots reveals price differences across retailers, ensuring you don’t overspend.
Despite the convenience of AI and online shopping, many people still prefer the tradition of in-store browsing.
“I’ve got five grandchildren I shop for, and it’s kind of fun to do it in person,” shopper Nancy Bolan shared.