Only 14% of retailers see AI playing a big shopping role
of ConsumerAffairsSixty-five percent of consumers plan to use artificial intelligence for at least part of their holiday shopping this year, a new survey finds.
Just 8% of retailers say they are highly confident in their ability to use AI to improve the shopping experience.
Shoppers also expect reliable deliveries, free returns and quick refunds, creating additional challenges for retailers.
Artificial intelligence could play a major role in how consumers find gifts, compare products and manage their spending this holiday season, but many retailers appear unprepared for the shift.
A new holiday shopping report from Narvar found that 65% of consumers plan to use AI during at least one part of their holiday shopping. However, only 8% of retailers said they were very confident in their ability to use the technology to improve the customer experience.
Narvar, which provides software to retailers, surveyed 1,348 U.S. consumers who plan to shop online during the holidays and 100 retail decision-makers.
Consumers said they expect to use AI for a range of shopping tasks. Forty-three percent plan to use it to discover gifts, while 33% expect to use it to compare products or summarize customer reviews. Twenty-nine percent said they would use AI to create a budget or plan their holiday spending.
Another 15% plan to use the technology after making a purchase, such as tracking packages or receiving reminders about return deadlines.
Nearly eight in 10 consumers said they would use AI-powered shopping tools if those services made the experience feel more personalized.
Retailers, however, may be underestimating the change. Only 14% of retail executives surveyed said increased use of AI shopping assistants would be the biggest change in consumer behavior this season. Many remain more focused on traditional concerns, including shipping costs, discounts and order fulfillment.
Consumers arent waiting for retailers to catch up, Narvar CEO Anisa Kumar said. Theyve already brought AI into how they discover gifts, compare prices, and decide what to buy.
Shoppers want free shipping but they also want it fast
The survey identified another potential conflict between consumer expectations and retailers costs.
Although 76% of shoppers said they would accept slower delivery in exchange for free shipping, nearly three in 10 still expected a free order to arrive either the same day or the next day. Eleven percent considered same-day delivery reasonable, while 18% expected next-day service.
Meeting those expectations without charging for shipping may be difficult and costly, particularly for smaller retailers. Narvar said merchants should clearly display estimated delivery dates during checkout and then make sure orders arrive when promised.
Delivery reliability may matter more than speed. Nearly half of consumers 49% said dependable delivery dates influence where they buy. That closely matches the 51% of retailers that listed delivery-date accuracy as a leading strategy for turning browsers into buyers.
Late and missing packages remain common concerns. Thirty-seven percent of shoppers said they experienced a late delivery during last years holiday season. Nearly one-quarter said a package was marked as delivered even though they did not receive it.
Returns and refunds could determine loyalty
Retailers may also lose customers if they make returns expensive or refunds unpredictable.
More than half of consumers 56% said they had delayed or abandoned a purchase because they did not know how long a refund would take. Forty-six percent said they avoid retailers that charge customers to return purchases.
When asked what would make them shop with a retailer again after the holidays, 51% cited each of three factors: avoiding delivery problems, providing hassle-free returns and offering a discount.
Cost remains a major concern, with 45% of respondents worried about having enough money to buy gifts. Even so, 63% expect to spend more this holiday season than they did in 2025.
Consumers may also start earlier. Fifty-eight percent said they plan to begin shopping sooner than last year, but 77% of retailers said they have no plans to offer incentives that encourage early purchases.
The findings suggest AI may help consumers search more efficiently, but shoppers should still independently confirm prices, product details, return policies and delivery estimates.
AI-generated recommendations and summaries can be incomplete or inaccurate, especially when they rely on outdated information.
Photo By CNET
Posted: 2026-08-25 10:57:43
