Giving just the right gifts to friends and relatives shows you considered their individual needs and personality, then carefully selected goods or experiences just for them. It’s not always easy, though. Even when you know the person well, you may get stumped for ideas, especially ones that fit your budget.
Now, many consumers are solving the dilemma with emerging technology. According to a 2024 Holiday Survey conducted by Talkdesk, 90% of shoppers are using AI in some form this holiday shopping season, up from 88% in 2023.
Learn more about how to do use AI to streamline your holiday shopping experience.
[Related:How Much Do You Really Need to Spend on That Holiday Gift?]
Computer-Driven Consumer Suggestions
Artificial intelligence models the human mind, learning and improving on the process. Chances are you’re already using it. When you type a message into your phone, the words you are most likely to write will almost magically appear.
AI tools like ChatGPT, Google’s Gemini and X’s Grok, can give you suggestions about products and services that you might think of on your own before they even occur to you. Open the program, type who you want to buy for, include your financial parameters and in seconds you’ll receive suggestions.
For example, when you type, “I have $50 to spend on a gift for a 14-year-old boy who lives in Chicago and likes basketball. Can you offer some ideas?” into Gemini, the top responses are:
— Chicago Bulls gear: You can find affordable jerseys of current or retired Bulls players like Zach LaVine or Michael Jordan. A stylish Bulls hat is a great way to show team spirit. A comfortable and cool Bulls t-shirt is perfect for everyday wear.
— Basketball accessories: A durable outdoor basketball will be a hit. Consider a ball with good grip for outdoor play. Fun and functional, basketball socks can add a touch of personality. A wristband or headband is a simple but useful accessory for any basketball player.
— Experiences: Tickets to a local high school basketball game. If he enjoys watching live games, this could be a fun experience. Donation to a local youth basketball program: A thoughtful gift that supports his passion and gives back to the community.
[Related:This Is the One Thing Americans Refuse to Stop Spending On]
Stumped for what your spouse may want? Here are some top responses from ChatGPT when you type, “What would be good gifts for my wife for about $250? Her interests are archaeology, ancient Greece and fine wine”:
— Archaeology and ancient Greece-inspired gifts: Ideas include a handcrafted piece of jewelry inspired by ancient Greek designs and a beautifully illustrated coffee table book on the art, culture and archaeology of ancient Greece.
— Custom or personal gifts: A personalized map featuring ancient Greece or the sites of historical archaeological importance, or a set of high-quality wine glasses engraved with a personal message, her initials or an ancient Greek motif.
— Experiential gifts: Some organizations offer the chance to volunteer on real archaeological digs, which could be a dream experience for your wife. A private cooking class or a meal kit that focuses on Greek cuisine could be a fun way for her to dive deeper into Greek culture. You could book a cooking class with a local chef specializing in Greek or Mediterranean food, or perhaps get her a Greek recipe book paired with high-quality ingredients.
If the first suggestions aren’t on point, you can keep adding more specifics until you have a fully curated list.
Retailers Use AI to Give Customers Guidance
Retailers are also using AI, says Gopi Polavarapu, chief solutions officer at Kore.ai, an international AI solutions company, in Orlando, Florida. When you visit a store’s website, a chat box may appear. When you type in questions, you are interacting with computer programs that simulate human conversations.
“They’re like shopping assistants,” Polavarapu says. “Maybe your dad is a biker, so you go to a motorcycle company’s website. The chatbot asks how they can help. It’s like tapping someone’s shoulder at a retail store.”
The bot may ask how much you want to spend, then identifies various products that match. It knows everything about the products in the retailer’s catalog, from the price to consumer ratings. These intelligent virtual assistants (IVAs) are streamlining customer interactions.
“Beyond helping consumers solve service issues, IVAs have morphed from dull-witted assistants to savvy personal shopping aids, guiding users through product choices and streamlining the entire shopping experience,” Polavarapu says.
“These AI-backed chatbots can answer any question a consumer has — down to very specific details and crafting a curated gift list based on personal preferences,” he adds.
In fact, says Alex Beckman, founder and CEO of ON, an AI-based chat platform headquartered in San Francisco, AI is perfecting the fine art of the personalized shopping experience typically offered by luxury retailers.
“The smartest brands are using it,” he says. “AI understands the inventory and gets to know the consumer. You tell the chatbot all the factors, and the response can replicate a really good salesperson.”
Armani Exchange, for example, features a real-time, personalized shopping journey guide for its customers, Beckman says.
If you’re shopping for a specific handbag that you think your wife may love, just locate the chat or virtual assistant on the website and type in your question, such as “Do you have the logo charm tote bag in black?”
In a moment you’ll receive an answer, with products that match that criteria. It will also give you information about similar options, in various sizes and colors, just as an intuitive salesperson would.
AI Can Help Identify Deals
Pinpointing the lowest price on items that you have selected as gifts is also important, as is scouring the internet for the best promo codes and other forms of instant discounts.
If you don’t know where to find instant discount codes, your first stop might be AI.
For example, type “Where can I get a promo code for Nordstrom?” into Grok and you’ll see suggestions such as “Websites like RetailMeNot, Forbes, Marie Claire, Groupon, Rakuten and others often list promo codes for Nordstrom.”
Want to find local bargains? Be specific about your location. Type, “What stores in Atlanta are offering the best holiday shopping discounts right now?” into Grok and you’ll get a list, including Perimeter Mall, Ponce City Market and Buckhead Village.
[READ: 10 Ways to Sidestep Holiday Financial Stress]
Be Aware of Limitations
“ChatGPT is a large language model, so everything may not be correct or up to date,” Beckman says.
It can also be vague.
So, if you’re looking for a promo code you can apply to a pair of Bose QuietComfort headphones, ChatGPT will provide you with strategies on how to locate such discount codes, but it won’t find the codes for you.
Or maybe your 16-year-old niece is really into Taylor Swift, and you have up to $30 to spend. You have no idea what to get but you want it to be special. With ChatGPT you’re likely to get generic suggestions like tour merchandise and posters.
Specific items that have just come to market may not show up, though, nor will one-of-a-kind things that individual creators are offering on sites like Etsy, or that are available second hand.
Shop the Right Way With AI
Because AI and chatbots mimic real-life interactions, you may be tempted to communicate with them as if they are human, with words like please and thanks.
“People don’t know how to interact with the bots yet,” Polavarapu says, explaining that it’s not always necessary to input what you’re looking for in the form of a question.
As an example, the prompt, “gift for 67-year-old father-in-law who likes fishing in Canada under $50” on Grok produced the suggestion, “Consider a subscription like the Mystery Tackle Box. Each box might include various lures, tackle, and accessories tailored for bass fishing, which could be exciting for him if he enjoys catching different species. These are often under $50 for a single box.”
The information comes from data scraped from the internet, so the more specific you are, the more refined the responses will be.
AI can also help you plan for regular gifting events, so you never disappoint someone with a forgotten birthday or anniversary.
“You can set up gift lists with Amazon with peoples’ dates of births and AI will automatically suggest gifts,” Polavarapu says. “That technology can help you build a relationship with family members. If I bought my nephew an Xbox last year, it will keep that history and will let you know there is a new model available.”
Use AI for a Low-Stress Gift Shopping Experience
When you use AI correctly, it can alleviate gift-giving stress that many feel. Taking advantage of this technology to find great gifts for your loved ones, especially when time is pressing, can make a lot of sense.
At the very least it can kick you out of the “I have no idea what to give this person” rut, putting you on track with excellent suggestions. Then, when the recipients delightedly ask how you knew what they wanted, you can take the credit.
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Stumped for Gifts? How AI Can Help originally appeared on usnews.com
Update 12/09/24: This story was previously published at an earlier date and has ben updated with new information.
