CIOInsider India Magazine

A holiday shopping spree can be both a joyful and overwhelming experience, when there are many options to choose from. But AI shopping assistants are restoring the holiday spirit by elevating the shopping experience little by little. AI in online shopping is helping improve operations, manage inventory, and customize customer experiences in the last weeks of holiday shopping. Relying on AI for holiday shopping can lead to more seamless, effective, and customized shopping experiences. Smart shopping with AI not only helps in decision-making, but also in cutting costs, opting for sustainable choices and much more. Although the technology’s boom has just unfolded in the past few years, some are already on an AI shopping spree.

How Tech Companies Are Elevating the Holiday Spirit
Last year, Google made improvements to Google Shopping with AI, which sends a brief with the most important search parameters. Additionally, the application offers a specified feed of products users might find to their liking based on the shopping patterns it has read.

On the other hand, Perplexity, an AI firm, brought in a personal shopping assistant, easing product searches and purchases last year as well. The assistant pops up a slew of product cards with the most vital suggestions based on the user's search query when they ask for a particular product. Additionally, customers can take a picture of an item they want, and Perplexity's AI helper will locate it for them. Now, on to how AI is a reliable companion to take along for shopping.

Gifting Advises
Customized gift recommendations are observed to be one of AI's reliable features during festive times, especially during Deepavali and Christmas. Companies like Amazon, Etsy, and eBay are said to deploy advanced recommendation engines that study your past browsing and purchase activity. It also looks into the preferences of similar customers to make product recommendations that you might not have otherwise thought of. Even your web searches, wish lists, and stored items are scanned by AI to determine what will appeal to you or others with similar or relatable interests.

Amazon's system often tends to highlight trending products that are within your price range, while Etsy's algorithms can find one-of-a-kind, handcrafted gifts that suit your unique preferences. Aside from these platforms, shoppable advertising is integrated by AI tools like Pinterest and Instagram, which use your browsing patterns to suggest personalized gift suggestions.

AI-powered gift recommendations, like those provided by Google Shopping or personalized recommendation applications, can distill through many products to discover that one unique product for people who feel overwhelmed by the vast array of choices.

Curating Best Deals and Ideas
AI-powered virtual shopping assistants have been around for a while, mostly relied upon by last-minute shoppers. These assistants like Google Assistant or Alexa from Amazon, can make the shopping lists for you, notify you when sales are happening, and even make real-time recommendations for most liked products. By simply popping a question, the virtual assistant will whip out curated ideas and links to make a purchase.

While there is a lot of hustle and bustle during the holiday season, these AI tools are also working towards improving the customer service. Retailers use these AI chatbots to handle returns, find things, and respond to frequently asked queries. These bots save valuable time and offer immediate service around-the-clock.
Popular applications like Capital One Shopping are well-versed in using AI to track pricing changes, notify you of sales, and even apply coupons automatically at the register.

Say Goodbye to Endless Scrolling
You no longer have to scroll over and over again to find what you have been looking for. These days, AI-powered search engines are becoming more precise by displaying results and keywords that are to your liking. Famous shops like Walmart and Target often use AI algorithms to improve the usability of their search features and recommend products that are tailored to your specific requirements.

Be purchasing clothes or household products, leave to the AI to transform the entire experience. Technologies like Augmented Reality (AR), allow you to see how clothing will fit and look in virtual fitting rooms before you even enter a store. While IKEA's AI-powered AR app displays how furniture would look in your living area, Sephora and other platforms employ AR to allow customers to visually experiment on makeup.

Not only do these improvements save time, but they also provide purchases that may otherwise seem dangerous, a sense of security. By leveraging AI to make more informed purchases upfront, you can prevent the dreaded post-holiday returns.

Easing the Financial Worries
Financial strain is often associated with holiday shopping, but AI solutions can assist. AI is used by apps like Mint and You Need a Budget (YNAB) to classify your purchases, evaluate your spending patterns, and notify you when you're getting close to your spending limitations. Some even enable you to create holiday spending budgets and monitor your success in real-time.

AI is a strong ally in locating the greatest offers as well. It might be challenging to choose when to buy when shops use dynamic pricing, which modifies prices in response to demand. Deal trackers with AI capabilities, such as PriceBlink or CamelCamelCamel for Amazon, keep an eye on these variations and alert you when prices decline.

Choosing Sustainably
AI is helping to make holiday shopping more sustainable as people become more environmentally mindful. These days, a lot of businesses employ AI to streamline their supply chains, cutting waste by enhancing inventory forecasts and eliminating overproduction. This reduces the amount of unsold goods that wind up in landfills.
AI also assists consumers in choosing more environmentally friendly options. While platforms such as Lyst filter products based on sustainability criteria, apps such as DoneGood showcase environmentally conscious firms. To lessen the environmental effect of long-distance transportation, some firms even recommend local gift options.

AI enables us to enjoy the holidays while keeping the environment in mind by coordinating holiday shopping with sustainability objectives.

AI's contribution to holiday retail this season has raised the bar for customer satisfaction. The improved operational effectiveness, higher stock levels, and smooth shopping experiences are indicative of a trend in the industry toward the use of AI to meet and even beyond client expectations. In addition to revolutionizing inventories and logistics, AI is also altering how advertising campaigns interact with consumers.