CPM | UK Blog

The effect of AI on Christmas gifting 2026

Written by CPM UK | Aug 27, 2026, 9:32:07 AM

Christmas 2026: AI might recommend the gift. But what closes the sale?

Christmas has always been a high-pressure shopping occasion. Finding the perfect gift for friends and family remains one of the season's biggest priorities, but it's also one of its biggest stress points.

According to Mintel, more than half of shoppers (53%) say they feel pressure to get gifts "right", often spending more than they originally intended. For younger consumers, that figure rises to 70%. As budgets remain under pressure, many shoppers are looking for ways to make better purchasing decisions without overspending.

Increasingly, they're turning to artificial intelligence.

Whether it's finding gift inspiration, narrowing down options or getting recommendations for items you have little knowledge about, AI is becoming a valuable new companion in the Christmas shopping journey. Gifting makes that particularly relevant as we often find ourselves buying from categories we know little about – whisky when we don't drink it, skincare we don't use, or a games console for someone who knows far more about gaming than we do.

For brands preparing for peak season, that's creating an important question:

If AI is influencing what shoppers consider, what ultimately influences what they buy?

AI is becoming a new starting point for Christmas shopping

Over the last year, AI has moved from novelty to practical shopping tool.

Last Christmas, 20% of consumers planned to use generative AI to help with festive purchasing decisions. Among 18 to 34-year-olds, that figure rose to 42% (Mintel, 2026).

The appeal is obvious. Instead of spending hours searching websites and scrolling through endless options, shoppers can simply ask:

"I need a Christmas present for my 25-year-old brother. He's into running, coffee and travelling, already has too many gadgets, and I've got £60 to spend."

Within seconds, AI generates tailored recommendations based on a person's interests, and the occasion within a budget.

For shoppers, that's powerful. It removes some of the friction, uncertainty and decision fatigue that often comes with gift buying. As such it's likely AI-assisted shopping is going to become an increasingly common part of the Q4 customer journey, particularly among younger consumers.

But it can also introduce shoppers to products and brands they may never have encountered before. A shopper doesn't necessarily need to know which category to search, or which brands operate within it – they can simply describe the person, need or occasion and let AI suggest the options.

For challenger brands, that could create new opportunities to enter consideration. For established brands, it could introduce new competition into a shopper's shortlist.

But AI isn't the decision maker

Despite growing AI adoption, consumers haven't handed over purchasing decisions entirely.

In fact, there remains a significant gap between using AI and trusting AI.

Mintel Research (2026) shows that 73% of consumers still prefer recommendations from people they know over recommendations generated by artificial intelligence. Meanwhile, 56% believe using AI to find gifts makes gifting feel less thoughtful and 44% say AI-generated gift suggestions are often inaccurate.

What this tells us is that AI has become an inspiration tool, not necessarily a trusted authority.

It may help shoppers create a shortlist, or introduce new products and brands to them, but consumers can still look elsewhere for reassurance before making a final purchase.

The more unfamiliar the category, product or brand, the greater that need for reassurance may be. An AI recommendation for a brand you've never heard of in a category you know little about can solve the initial "what should I buy?" question – while creating another: "How do I know this is really the right choice?"

The rise of the validation economy

This is where things get particularly interesting for retailers and brands.

If AI is taking over some of the inspiration phase, the role of retail increasingly becomes validation.

Once shoppers receive a recommendation, they start looking for evidence that they're making the right choice.

That evidence might come from:

Each of these touchpoints helps answer the same shopper question:

"Is this really the right purchase?"

AI can generate the recommendation, but retail experiences can build the confidence required to act on it.

This presents an interesting opportunity for brands. A challenger brand may find itself on an AI-generated shortlist alongside much better-known names, but still needs to turn that newfound consideration into confidence. An established brand, meanwhile, has an opportunity to reinforce its familiarity and credentials when shoppers encounter it alongside less familiar AI-recommended alternatives.

Why the physical store still matters

It's easy to assume that the rise of AI means digital channels will dominate the Christmas shopping journey. The reality is far more nuanced.

Even younger shoppers continue to value human expertise and in-store reassurance. In technology categories, for example, 71% of 16 to 24-year-olds say shopping feels overwhelming without support from knowledgeable staff (Mintel, 2026).

At the same time, shoppers are still looking for discovery opportunities in physical retail. Nearly two-thirds (62%) of UK gift buyers who find inspiration in store say they would like retailers to offer more unique products that can't be found elsewhere.

This becomes particularly important when shoppers are buying outside their own areas of expertise. An AI-generated recommendation may give someone a shortlist of headphones, skincare products or whiskies, but seeing the product, understanding the differences, trying it or talking to someone knowledgeable can provide the reassurance they need to make the final choice.

In other words, while AI may influence the search, the store continues to shape the decision.

What does this mean for brands ahead of Q4?

Much of the conversation around AI in retail focuses on autonomous purchasing and agentic commerce. While those developments may come, the more immediate impact is likely to be on shopper expectations and the way products enter consideration.

Consumers are becoming accustomed to personalised, conversational support. AI can also expose them to a wider range of products and brands than they might otherwise have considered.

For brands, success won't simply come from appearing in an AI recommendation.

Success will come from ensuring every touchpoint helps validate a shopper's decision, whether that's confirming an AI recommendation or helping your brand stand out against one.

When shoppers arrive in-store with an AI-generated shortlist, they may be looking for confirmation that the recommendation is right for them. This is where strong execution becomes a competitive advantage.

Merchandising, availability, promotions, demonstrations, sampling and knowledgeable field teams all become forms of validation and reassurance that help convert consideration into purchase.

Our take

The rise of AI doesn't reduce the importance of great retail execution. If anything, we believe it creates a new opportunity for it.

AI can help shoppers navigate unfamiliar categories and discover brands and products they may never previously have considered. That has the potential to open doors for challenger brands and widen the competitive set for established ones.

But recommendation isn't the same as reassurance.

As shoppers use AI to discover unfamiliar products, the moments that follow – reviews, visibility, merchandising, sampling, demonstrations, knowledgeable people and product experience – can help validate that recommendation or persuade them towards an alternative.

The Christmas shopper may increasingly be AI-assisted, but they're far from AI-decided.

While AI may influence what makes the shortlist, brands still have multiple opportunities to influence what ultimately makes it into the basket.

It's there that the opportunity lies.

At CPM we help brands create the in-store experiences that turn curiosity into confidence and confidence into sales, helping more shoppers Try, Buy & Love your brand during the most important trading period of the year.

Need merchandising, sampling or field sales for Q4 or a whole new refresh for 2027? Let's talk.