Gen Z shoppers to embrace AI this holiday season

PITTSBURGH (KDKA) — As the holiday shopping season approaches, there are new ways retailers hope to boost business.

Forget the outdated browse-and-buy strategy. Young shoppers want the help of artificial intelligence this year.

"I use AI too with the generators and stuff for ideas. So, like ChatPT, all the ideas, it gives you a list," University of Pittsburgh student Brooke said.

"If I need ideas, like stuff to get my dad for his birthday, I don't know what to do," Pitt student Nina said.

A new survey from Fiverr of more than 2,500 consumers and more than 2,500 small-to-medium business leaders in the United States, United Kingdom, France, Germany and Australia found retailers are strategizing to reach new consumers. They are especially targeting Gen Z shoppers.

"So 43% of the Gen Z shoppers we surveyed said they plan to spend more this year, and then more than half of them said they plan to use AI as a shopping assist," Laura Podesta, public relations manager at Fiverr, said.

Podesta explained what it means to use AI as a shopping assist.

"Some Gen Z-ers said that they plan to use ChatGPT to find the best prices," she said. "Some are using AI to search for gifts, perhaps, put in, 'What can I get my aunt who's age 50,' and then they're getting a list of ideas."

Some will even use AI to create holiday presents. KDKA-TV put a prompt in ChatGPT asking, "Christmas gift ideas for my aunt who loves birds and knitting," and the results were not too bad: a stylish bird feeder, a luxury yarn or online knitting classes.

Podesta said retailers think these features will capture the shopping habits of Gen Z-ers.

"We know that 70% of businesses plan to invest in AI," she said. "Thirty-nine percent are upping their social media ads, 35% are investing in influencer marketing strategies. So, they do believe they have a good hold on who their customer is and where their customer is. And they're spending those ad dollars accordingly."