The 2025 holiday season is being shaped by two forces that few shoppers can ignore: tough economic conditions and the rise of artificial intelligence. A new study from UserTesting and Talker Research shows that while inflation, tariffs, and crowded stores are still top frustrations, many consumers are leaning on AI to ease the stress.
One out of three shoppers say they will use AI this holiday season, with the highest adoption among Gen Z and Millennials. People are using these tools to brainstorm gift ideas, track down the lowest prices, check if deals are truly worth it, and grab direct product links.
Confidence in AI is also growing quickly. Nearly two-thirds of consumers now trust AI for gift recommendations as much as friends or family, with trust even higher among Gen Z. Many also believe it reduces stress and helps bring a bit of fun back to the tradition of holiday shopping.
Spending is still expected to climb despite financial strain. In the United States, the average planned spend has risen to $449, compared to $423 last year. The United Kingdom has climbed to £365 from £313, while Australia is at AU$419, up from AU$380. Younger shoppers are driving much of this increase, with more than half of Gen Z and nearly half of Millennials planning to spend more than they did last year. Many are also saving in advance, with a majority in each country setting money aside ahead of Black Friday.
Social media continues to influence buying decisions. Gen Z reported making between 11 and 15 purchases over the past year based on TikTok Shop, Instagram, and other social platforms, while Millennials reported fewer but still notable numbers. Black Friday itself remains popular, with nearly two-thirds planning to take part.
And yet… some skepticism lingers, as more than a third say the discounts are no better than what can be found at other times of the year. Younger generations remain the most optimistic, with many believing Black Friday still offers the best bargains.
Flexible return policies remain one of the most important factors when choosing where to shop. Other key demands include lower shipping costs and convenient pickup options. At the same time, frustrations such as inflation, product shortages, and crowded stores weigh heavily on consumer sentiment.
Concerns about AI obviously exist. Some shoppers worry about data privacy, scams, or the lack of a personal touch. Still, most believe change is unavoidable. The majority of Gen Z, Millennials, and even Gen X expect AI to reshape shopping within the next three years.
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