October 29, 2025
This Year, Holiday Shopping Belongs to the Algorithm
There was a time when choosing the right gift meant paying attention. Listening for hints, remembering preferences, and trying to surprise someone you cared about. This year, for many shoppers, that decision-making will be outsourced to something less sentimental, an algorithm.
Zeta Global’s latest survey suggests that the 2025 holiday season may be the moment when Americans officially hand over their shopping instincts to artificial intelligence. Among 2,000 adults who use AI tools regularly, 83% said they plan to let AI help decide what to buy. Further, almost 70% trust an algorithm’s recommendation as much as one from a friend.
AI Helps Those Overwhelmed by Choice
As people become more comfortable letting algorithms curate music, news, and entertainment, they’re beginning to do the same with gifts. The idea of an AI gift algorithm guiding purchases is practical. Those overwhelmed by choice can feel relieved to let a machine that “knows” your partner’s favourite brands or your dad’s hobby preferences do the job.
Pamela Lord, who leads Customer Relationship Management at Zeta Global, described this season as a turning point. She said: “AI has become part of the shopping fabric. Retailers that use it to make customers feel understood, not just targeted, will come out ahead.”
About 73% of respondents believe AI will make shopping less stressful, and a similar share said they’re comfortable sharing personal details about loved ones if it means more accurate suggestions. Most even like the idea of friends or family using AI for gift ideas, proof that digital recommendation is shedding its stigma.
However, many still crave the human touch. Over 60% said gifts chosen entirely by people feel more meaningful. Sixty percent find the AI experience “mechanical,” and most wouldn’t admit to using it at all. Only 30% believe AI could ever understand their family better than they do.
The real challenge lies in making AI feel personal without stripping away the emotion behind the act of giving. If algorithms can combine convenience with authenticity, they’ll forever change the meaning of “thoughtful.” If not, they risk turning the holidays into just another transaction.
While algorithms guide the hunt, buy now, pay later (BNPL) is quietly deciding what happens at checkout. A report by PayPal reveals that flexible payment options will have an equal influence on the purchasing decision for many consumers, as do the choices made by AI.
