October 31, 2025
Your Christmas Deals Are Brought to You by AI
This Christmas, AI might just be the busiest elf of all. From scanning for discounts to picking out gifts, it’s fast becoming an essential part of the shopping ritual, though many people don’t even know when it’s working behind the scenes.
Talkdesk’s new AI Holiday Shopping Report reveals how quickly the technology has become a retail habit. Seventy-five percent of consumers say they’ll turn to AI for help finding deals this year, while 60% plan to use it for gift ideas. Many consumers are finding it as normal as scrolling through reviews or checking delivery dates.
However, people do want to know when AI is being used, and most retailers won’t tell them. Transparency remains a top priority when using AI, as per Emplifi report. Eighty-four percent of shoppers said disclosure matters, yet only about half of the retailers using AI are upfront about it. That secrecy, at a time when digital trust already feels fragile, could easily sour the experience.
It’s a pity, because when used openly, AI seems to make shopping easier. Most consumers in the survey said it helps them feel calmer, more in control, and even happier about their purchases. The majority believe it helps them save money, and many expect to return fewer items because they’re finding what they actually want.
AI as a Competitive Edge
Retailers have good reason to be optimistic about AI use, too. Those already using AI say it’s boosting both sales and loyalty. Around 85% are now using it to predict demand, and 83% have virtual assistants ready to chat with customers.
Michael Klein, Head of Retail, Travel & Hospitality Product Marketing at Talkdesk, said: “It’s clear consumers want AI in their holiday shopping experiences. What’s also interesting is that many retailers using AI are steaming ahead without enough consideration for transparency, but those not adopting AI due to transparency fears risk losing a competitive edge. Responsible AI use is not a paradox; AI should be shaping customer experience with best practices like guardrails, human oversight, and usage disclosures in place. The retailers that thrive this holiday season will use AI strategically and responsibly, blending innovation with integrity to build lasting customer loyalty and trust.”
What’s striking is how different the mood is among retailers who haven’t adopted it. A surprising 73% say they’re not worried about losing business to AI-savvy competitors. Confidence, or denial? Time will tell.
At the moment, shoppers seem comfortable with AI as long as it feels fair and transparent. They don’t mind algorithms helping them shop, but they want to know they’re there. If retailers want to keep that trust, it might be time to stop treating AI like a trade secret.
