Gen Z and Millennials Drive AI Adoption in Holiday Shopping

Younger generations are reshaping holiday shopping through their increasing reliance on artificial intelligence (AI) tools, according to Deloitte’s 2026 Holiday Retail Survey. The survey reveals that nearly half of Gen Z (49%) and millennials (50%) utilize generative AI for various shopping tasks, marking a significant shift in consumer behavior. This trend is critical for retailers as these demographics now account for half of expected holiday spending, signaling a pivotal moment in the retail landscape.

The data indicates that younger consumers are not just adopting AI but are doing so at a rate that surpasses older generations. Only 35% of Gen X and 23% of baby boomers report using AI for shopping tasks. This generational divide highlights the urgency for retailers to adapt their strategies to meet the preferences of younger shoppers, who view AI as a valuable resource for budgeting, gift inspiration, deal discovery, and product comparisons. However, despite their enthusiasm for AI, trust remains a barrier; only 16% of respondents would permit AI to finalize a purchase on their behalf.

Adobe’s holiday forecast further contextualizes this trend, projecting a 130% increase in traffic to U.S. retail sites from AI-powered services during the holiday season. This surge is anticipated to peak on Thanksgiving, with a 159% increase, followed by Black Friday and Cyber Monday. While these figures indicate a growing reliance on AI for product discovery, they do not directly correlate with increased sales, underscoring the need for retailers to convert interest into purchases effectively.

The economic backdrop also plays a crucial role in shaping consumer behavior. With inflation and rising gas prices impacting household budgets, shoppers are prioritizing value. Deloitte’s findings reveal that 79% of respondents expect higher holiday prices, and those identified as “holiday value seekers” are more likely to engage with generative AI to maximize savings. This demographic's focus on affordability may drive greater AI adoption, as they seek to navigate a challenging economic landscape.

Interestingly, while consumers using AI report higher confidence in their purchases—77% express increased assurance and 69% are less likely to return items—broader skepticism persists. Only 31% of all respondents trust generative AI to accurately compare products and prices, and a significant 66% are concerned about data privacy. Retailers must address these trust issues to fully leverage AI's potential in enhancing the shopping experience.

For retailers, the implications of these findings are profound. The potential for AI to drive traffic and enhance discovery is evident, but the challenge lies in converting that interest into sales. The survey indicates that 29% of shoppers are willing to try unfamiliar retailers based on AI recommendations, suggesting that AI can facilitate new customer acquisition. However, this requires retailers to provide accurate information, transparent pricing, and a secure purchasing process.

As the holiday shopping season approaches, retailers must prioritize building trust in AI tools while optimizing their visibility in AI-driven platforms. This dual focus will be essential not only for capturing the attention of younger consumers but also for ensuring that their interest translates into actual sales. The evolving dynamics of holiday shopping underscore a broader trend: as AI becomes more integrated into the consumer journey, retailers that adapt to these changes will likely emerge as leaders in a competitive market. The ability to harness AI effectively will be a defining factor in shaping the future of retail.