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Study finds consumers ready to use AI for holiday shopping — here’s how

Christmas online shopping flat lay. Girl writing shopping list. Laptop, present box, cup of coffee, holiday decoration. Winter holidays sales; Shutterstock ID 1816989257
Nearly 30% of consumers plan to use AI for for budgeting and planning their holiday spending.

Consumers are embracing AI for holiday shopping faster than retailers are preparing for it.

The majority (65%) of consumers plan to use AI for at least one part of their holiday shopping this year, according to research from AI-powered platform Narvar. But only 8% of retailers describe themselves as very confident in using AI to improve the shopping experience.

Nearly eight-in-10 (78%) shoppers said they would use AI-powered tools if doing so made their shopping experience feel more personalized. Retailers are watching this shift unfold from a distance. Only 14% expect greater use of AI shopping assistants to be the biggest behavioral change this season, and most are still concentrating their attention on shipping costs, discounts and operational execution.

Consumers described several specific ways they intend to use AI this year:

•43% for gift discovery;

•33% for comparing products and summarizing reviews before buying;

•29% for budgeting and planning their holiday spend; and

•15% for managing what happens after checkout, including package tracking and return reminders.

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“They've [consumers] already brought AI into how they discover gifts, compare prices, and decide what to buy,” said Anisa Kumar, CEO of Narvar. "The retailers who win this season will be the ones who meet that shift with a purchase and fulfillment experience that actually lives up to what AI has trained shoppers to expect."

Shipping/Returns

The survey found that most consumers (76%) would accept slower delivery in exchange for free shipping. But when Narvar asked shoppers directly what time-frame felt acceptable for a free-shipping order, nearly 30% said same-day (11%) or next-day (18%) delivery should still be the standard, a bar few retailers can meet profitably without charging for it.

"Shoppers tell us they're willing to trade speed for free shipping, and most of them mean it,” said Kumar. “But a meaningful share still expects free to also mean fast. Retailers need to set the delivery window clearly at checkout and hold to it, because the promise matters as much as the price.

Other findings from the survey include: 

•56% of consumers have delayed or avoided a purchase because they were uncertain how long a refund might take;

•46% say they avoid retailers that charge for returns altogether;

•37% experienced a late package last year, and 23% were told a package had been delivered when they never received it; and

•51% of consumers say avoiding delivery issues, offering a hassle-free return experience, and providing a discount would each make them want to shop with a retailer again after the holidays.

Methodology

Narvar's 2026 Holiday Shopping Report draws on two surveys fielded in 2026. The retailer survey included responses from 100 retail decision-makers across operations, finance, e-commerce, and customer experience roles at companies spanning specialty retail, apparel, department stores, and other categories. The consumer survey included responses from 1,348 U.S.-based shoppers between the ages of 18 and 80 who plan to shop online this holiday season.

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