AI Holiday Shopping: Texas Retailers and Consumers Navigate a New Gift-Giving Landscape

Holiday shopping in Texas and beyond is increasingly being shaped by artificial intelligence, with a majority of consumers already trying AI for shopping and more than half worldwide planning to consult AI for product recommendations this holiday season, according to VML’s Future Shopper report. The trend presents both opportunities and risks for retailers and shoppers alike, as AI assistants like Muse, Claude, or Alexa become trusted companions in the gift-buying process.

Colleen Kirk, D.P.S., professor of marketing and management at New York Institute of Technology, cautions that today’s chatbots have very human-sounding responses, creating the feeling of shopping with a trusted friend. “With voices that mimic human inflections, tone, and emotional cadence, it's easy to forget that when you talk or text with your chatbot, you're not conversing with a human,” Kirk says. Kirk, who has researched psychological ownership—feeling a deep personal sense of possession to a product or brand—as well as emotional responses to AI writing, warns that naming a chatbot further increases feelings of trust and connection, which may make shoppers more susceptible to the chatbot’s recommendations.

For Texas businesses, the implications are significant. Retailers that integrate AI tools effectively could capture more holiday spending, but they must also be mindful of consumer trust and the potential for AI to diminish the personal touch that many shoppers value. If an AI chatbot supplies gift ideas before shoppers have thought about the gift recipient themselves, shoppers may lose feelings of ownership and miss an enjoyable part of the process. Kirk encourages consumers to brainstorm their own gift ideas first—then check with AI using specific criteria, like blue wool scarves under $100. Shoppers can also ask their chatbot to suggest ideas they may have missed or poke holes in their choices before making the final gift selection themselves.

Touch, such as handling an item at the store, may also add to the joyful experience of holiday gift giving by enhancing feelings of ownership. When shopping with AI agents, personally adding a gift to the cart and completing the purchase can preserve a sense of ownership. Kirk recommends adding a personal touch, such as a handwritten message or wrapping presents thoughtfully, to potentially increase gift-giving joy.

Kirk suggests using AI to buy everyday purchases, like grocery necessities, may free up time for more enjoyable holiday activities. AI assistants are also helpful for gift suggestions for acquaintances, like an office Secret Santa, while leaving gift ideas for close friends and family to the human shopper. As AI continues to reshape retail, Texas businesses that balance technological efficiency with personal connection may find the sweet spot for holiday success.