Coveo Holiday Report Reveals Growing Interest in GenAI for Holiday Shopping Among Consumers

Unveiling Consumer Insights: Coveo's Holiday Report on GenAI Usage in Shopping

As the holiday shopping season approaches, the relevance of Generative AI (GenAI) in enhancing customer experiences becomes substantially more significant. The recent report by Coveo, a leader in AI-relevance, reveals that over 70% of consumers show interest in utilizing GenAI tools during their holiday shopping period. This not only paves the way for unique customer experiences but also highlights the need for retailers to innovate and embrace technology that meets consumer demand.

Key Findings from the Report

The report, titled “Shoppers Say Yes to GenAI This Holiday Season,” is based on a comprehensive survey of 6,000 adult consumers across the US, UK, Australia, and New Zealand. Conducted in June 2025, the survey showcases a significant shift in consumer sentiment towards AI-powered shopping tools versus the slower-than-expected response from retailers.

Interestingly, GenAI is still not commonplace in shopping habits. Last year, the percentage of shoppers willing to use a virtual assistant for gift purchases was only 31%. That figure has notably increased to 63% this year, demonstrating both curiosity and intent among consumers to try out these innovative tools. The report reveals that 72% are open to the idea of using GenAI's guidance, and 35% of survey respondents have already utilized it. This eagerness is particularly pronounced among younger generations; a striking 85% of Gen Z and Millennials expressed their willingness to engage with GenAI shopping assistants.

Among those who have had previous experiences with GenAI in shopping, an impressive 91% report a desire to utilize these tools again, indicating a significant perceived value in their capabilities.

What Consumers Are Looking For

The survey indicates that shoppers are not just curious, but actively seeking support from GenAI tools for a variety of reasons. 41% of respondents are interested in assistance with product comparisons, while 35% are looking for budget-conscious recommendations. Furthermore, 31% of shoppers want help in gathering comprehensive information about potential gifts. This feedback highlights a strong consumer demand for smarter, more supportive purchasing experiences, which is crucial especially during the hectic holiday season.

Peter Curran, General Manager of Commerce at Coveo, commented on these findings, stating, “This report clearly signals a significant missed opportunity for retailers to differentiate themselves, alleviate shopper stress, and ultimately drive conversions during the holiday season by fully embracing intelligent, conversational discovery.”

Additional Highlights and Consumer Sentiments

The Coveo report sheds light on other pressing consumer sentiments. Despite 86% of shoppers feeling stressed about holiday shopping, 73% still plan to give as much or even more than they did last year. The main concerns include budget constraints, the pressure to find the perfect gift, and timely delivery. Younger shoppers, particularly, report heightened anxiety regarding these issues, with 96% of Gen Z and 92% of Millennials expressing concerns.

Furthermore, omnichannel shopping has become the new norm. 83% of shoppers indicate they will shop online, whereas 61% prefer in-store shopping. Additionally, 44% are likely to split their purchases across both channels, underlining the necessity for seamless experiences across all touchpoints.

Another interesting insight reveals that 34% of shoppers commence their gift search using a search engine, while another 34% begin their journey on a marketplace or retailer site. Thus, optimizing online search experiences remains crucial for retailers.

Looking Forward

As the decade nears its close, holiday shopping expectations continue to evolve. Black Friday/Cyber Monday (BFCM) remains a dominant shopping event, with 88% of global shoppers planning to participate. Retailers are now challenged not only to meet but to exceed customer expectations with competitive pricing and unique shopping experiences.

Ultimately, Coveo’s findings highlight a significant opportunity for retailers to leverage GenAI technology to not only improve customer experience but also drive their business outcomes in more meaningful ways. Personalized gifts top the shopping list, with 38% of shoppers preferring personalized or custom gifts. As we move forward into the holiday season, it's clear that innovation and understanding consumer desires will be key for retailers.