The Role of AI in Holiday Gift Selection

Like many individuals during the holiday season, Josie Hughes often finds herself contemplating gift ideas for friends and family. However, last month, she decided to explore an alternative method. Drawing on her familiarity with artificial intelligence (AI), particularly from her work at the Institute of Analytics, she sought to determine if AI could generate Christmas present suggestions for her nine-year-old brother. Ms. Hughes, an Eastbourne resident, stated, “I use AI all the time for my job, for example, help writing emails as I have autism and ADHD and I struggle…and I thought with Christmas coming up, I wonder if it can help me.” She then prompted ChatGPT for gift recommendations for a nine-year-old with an affinity for outdoor activities. “It recommended a slackline – like a tight rope – as well as a fishing kit and survival kit. He lives in a woodland area, and I was really impressed, I hadn’t thought of those gifts,” she noted. Ms. Hughes added, “I find it hard to trawl the internet; I don’t want the faff. This saves you a lot of time. It’s better for suggestions than just asking Google.” Consequently, a slackline will be among the gifts she wraps for him this Christmas. Research from the comparison platform Finder indicates that British consumers are projected to spend £28.6bn on Christmas gifts this year, an increase from £27.6bn last year, with an average expenditure of £596 per individual. Generative AI (gen AI) is increasingly integrating into the shopping experience, as more people are utilizing it for Christmas present inspiration this season. A recent global survey conducted by Accenture revealed that a significant majority (95%) of consumers believe gen AI can assist them in discovering superior gifts, and 90% appreciate the recommendations offered by gen AI tools. While OpenAI’s ChatGPT and Google’s Gemini are popular choices for idea generation, specialized AI gift generators are also drawing Christmas shoppers seeking assistance during the holiday period. GiftList, a US-based affiliate website, offers an AI-powered gift list generator. This tool provides gift suggestions, complete with links to products on its site, based on information provided by the shopper regarding the recipient and their interests. The company introduced its AI gift chatbot a year prior and has since enhanced it to offer a more interactive, conversational experience. Jon Jaklitsch, the firm’s chief executive, explained, “Before it would give you five ideas, it wasn’t something you could go back and forth with. We found people wanted that.” The company collaborates with 50,000 retailers. Addressing potential criticisms that this method of Christmas shopping might be perceived as lazy or impersonal, he responded, “It’s really meant to be a helpful assistant… it’s a sounding board.” GiftList faces considerable competition from other services such as Cool Gift Ideas and MyMap.AI. Linda Ellett, UK head of consumer and retail at the accountancy firm KPMG, suggests that these types of services, in a sense, mirror traditional shopping practices. “This is how it used to be with retailers. You used to go into a store and ask them for advice if you are looking for something, like a birthday present for a niece. Online never had that aspect and this gives them a chance to do that,” Ellett remarked. She further noted that gen AI platforms possess the capacity to significantly transform product search methods. Ms. Ellett stated, “If this becomes the norm, then it brings about big changes in how consumers are routed through to the sites of retailers, and poses questions for the likes of advertising and sponsored link costs via search engines.” However, for some individuals, the AI shopping experience has yielded varied results. Polly Arrowsmith, based in London, considers herself adept at gift-giving. Nevertheless, her fascination with technology prompted her to investigate AI’s effectiveness and whether it could surpass her own gift ideas. In November, she utilized ChatGPT to solicit suggestions for various family members, including her sister and father. The director of marketing explained, “My sister is 60 and has a stressful job, so I said she likes walking, relaxation and Neom candles.” She found, “It was vague with its suggestions, and came back with generic results like a tote bag and diary, and posters with inspirational quotes which my sister would think I had lost the plot if I gave her that. It didn’t offer specific products.” Intriguingly, the AI provided highly specific suggestions for her partner, for whom she specified to ChatGPT that he was male, 47, and interested in technology. “I was impressed as it came up with a particular pair of noise cancelling headphones which I thought he might like,” she commented. Conversely, when she requested ideas for her 83-year-old father, whose interests include walking, culture, and reading, she found the results overly generic. “It assumed he might like a foot massage machine, a personalised walking stick, or a meal delivery service. It looked at his age and not his interests. It assumed if he is 83 then he must be on physical decline. But he is very fit; he’s a member of two walking clubs,” she elaborated. Overall, Ms. Arrowsmith believes AI could serve as a beneficial tool for individuals lacking initial ideas. “It’s a good starting point, but I feel like you need to know something about that person to begin with,” she concluded. Regarding optimal AI usage for shopping, Dmitry Shevelenko, chief business officer at US-based Perplexity, an AI-powered ‘answer engine’, advised, “The more specific you can be about what you’re looking for, the more relevant your product recommendations will be.” “We suggest adding details such as who you’re buying for and what their interests are. For example, rather than just asking for the ‘best coffee maker,’ you can ask ‘what is the best espresso machine under £500 that also includes a coffee grinder?’” He also noted that nearly 10% of all searches on Perplexity during Black Friday were shopping-related. “We expect this rate to hold steady as we approach the holidays, given that this is the busiest shopping period each year,” he added. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.