Shopping wars this holiday season have sparked an AI arms race—the biggest retail technology experiment since the dawn of e-commerce. Retailers and tech giants, from Target and Walmart to Amazon, Google, and Meta, are racing to deploy smart shopping assistants that promise to help consumers find gifts faster, spend smarter, and even complete purchases.
Article contents:
- The first AI holiday season
- AI at the heart of the shopping experience
- New tools on the battlefield
- The shift toward “agentic commerce”
- Challenges and the future of smart shopping
- Frequently asked questions
The first AI holiday season
The same generative technology powering chat bots is now shaping everything from product discovery to in-store navigation—testing whether consumers are ready to let algorithms handle gift selection. This turns 2025 into the first true AI holiday season.
According to Vivek Pandya, a director at Adobe Digital Insights, traffic from AI-powered chat tools is expected to surge by 520% year-over-year, and could jump to over 1,000% on peak shopping days like Thanksgiving.
AI at the heart of the shopping experience
This shopping season marks a turning point for AI in retail. For the first time, AI is not just working behind the scenes to power recommendations—it is at the core of how people shop. The new AI features represent the largest coordinated rollout of retail technology in decades, attempting to make shopping feel less like searching and more like asking an expert for help.
New tools on the battlefield
Companies are racing to launch their innovations:
- OpenAI and ChatGPT: OpenAI introduced a new shopping search tool within ChatGPT that scans prices, reviews, and product availability to generate personalized buying guides. It says direct purchasing is coming through an upcoming “Instant Checkout” program. Target and Walmart are among the first major retailers to integrate ChatGPT as a shopping platform.
- Amazon: Launched “Help Me Decide,” an AI feature that analyzes browsing and purchase history to recommend the “right” product with a single click—and explains why it fits you.
- Target: Rolled out new AI tools like “Gift Finder,” “List-to-Cart Scanning,” and an updated store mode with aisle navigation.
- Walmart: Rolled out a suite of new AI-powered tools designed to help shoppers find deals, locate products, and navigate stores more easily.
- Google: Is integrating new AI tools into search and shopping, such as Virtual Try-ons and automated price tracking.
- Meta: Is integrating its proprietary AI assistant into Instagram and Facebook ads to match users with products in real time.
The shift toward “agentic commerce”
Every corner of commerce—from gift hunting to checkout—is being rewritten by AI, and payment players are adapting too. Visa and Mastercard are preparing for a surge in “agentic commerce”—when AI assistants independently make purchases on behalf of consumers—with new security protocols designed to protect both consumers and merchants.
Challenges and the future of smart shopping
Despite this momentum, retail analyst Bruce Winder points out that the technology is still in its infancy. Winder says: “Next year will be interesting to see whether consumers use AI agents differently, who they trust, what partnerships are formed with retailers, and how many retail dollars are sold through this new channel.”
The big question is whether these tools will truly improve the shopping experience or add another layer of complexity and confusion. Success will depend on how accurate the recommendations are, how seamless the experience is, and most importantly, how much consumers trust the decisions algorithms make on their behalf.
Frequently asked questions
Q: What is “agentic commerce”?
A: It is when an AI agent (such as a smart shopping assistant) makes purchases independently on behalf of the consumer, based on preset preferences and needs, without direct human intervention in every transaction.
Q: Are AI shopping assistants accurate in their recommendations?
A: Accuracy varies. Recommendations depend heavily on the quality of data the assistant has about you (browsing history, past purchases) and its ability to accurately interpret your request. The technology is improving rapidly, but it is not perfect yet.
Q: Is using these tools safe in terms of privacy?
A: For these tools to work effectively, they need access to your personal data. Consumers must be aware of the privacy policies of the companies whose tools they use, and understand how their data is used to train AI models and provide personalized recommendations.
Q: How will AI impact traditional in-store shopping?
A: AI is also being integrated into physical stores through features like aisle navigation (as seen in Walmart and Target), improved inventory management, and faster self-checkout experiences, making the physical shopping experience more efficient.
