AI-powered tools reshape the Canadian holiday shopping journey

Google Canada has released a new report outlining how artificial intelligence is shaping the way Canadians plan to shop during the holiday season.

The findings reveal significant changes in consumer shopping behaviours as AI-powered tools become increasingly integrated into Canadians' purchasing processes. According to the research, nearly half (43%) of Canadian holiday shoppers intend to use AI to assist them with decision-making and research for their holiday gifts.

Growing AI adoption

Data from Google's survey indicates a widespread shift as AI tools become more commonplace in consumers' routines, particularly among younger demographics. The report identifies the emergence of a distinct group of shoppers, described as the 'AI Shopper', comprised primarily of affluent, digitally native Generation Z and millennial consumers.

This group, described as high-value and high-growth, is leading the trend in AI adoption during the gift-buying season. The report notes that AI support spans the full shopping journey, from inspiration to comparison, decision, purchase, and even post-purchase support such as setup or installation.

For many holiday shoppers, AI has a practical use in alleviating stress related to last-minute buying. The findings show that 63% of Canadians who plan to use AI believe it can help reduce stress during the busy holiday period. Additionally, a quarter of respondents (25%) said AI could help them manage holiday shopping on a tight budget.

Trust in AI recommendations

Consumers are turning to AI with growing confidence, particularly when making major purchases. In categories such as consumer electronics and smartphones, 55% of surveyed Canadians trust AI's recommendations. The figure is nearly as high (50%) for those purchasing home appliances.

"Our latest holiday retail research reveals almost half (43%) of Canadian holiday shoppers plan to use AI tools to help them decide and research their holiday purchases, making this Canada's first AI-powered holiday season."

The report also highlights the increasing importance of research in holiday shopping, especially among younger shoppers. Gen Z consumers stand out, with 64% reporting their use of ten or more resources for holiday shopping decisions. This underscores a more elaborate and complex purchase journey when shoppers are buying for others.

AI across the shopping journey

According to the research, Canadian shoppers rely on AI tools at different stages of the process: 31% use AI for discovering new products and ideas, 41% use it for comparing features, prices, or deals, and 19% find value in AI's assistance after making a purchase, such as for product installation.

The expansion of visual search technologies is another trend noted in the report. Google points to tools such as Google Lens and apparel try-on functions, which have seen over 25 billion queries per month. A quarter of these visual search queries are commercially motivated, indicating consumers are using new interfaces to inform their purchasing choices by snapping or circling products directly from their devices.

Challenges and opportunities for retailers

The report outlines implications for Canadian retailers, noting the need for new strategies as consumer expectations and behaviours change. Retailers are encouraged to leverage AI-powered marketing to remain agile, engage early with customers, and maintain a steady presence throughout key in-store and eCommerce periods.

Google Canada's recommendations for retailers include setting clear business goals for the season, creating a seamless journey between online discovery and in-store shopping, improving the quality of digital product content so AI can more effectively recommend it, and utilising video channels such as YouTube to build product confidence among consumers.

The report emphasises the necessity for real-time availability updates, detailed store and product information, and clear delivery and return options to reduce friction in the final stages of buying. It encourages collaborations with creators and influencers to further inspire and reassure potential buyers.

"By following these steps, Canadian retailers can make the first AI-powered holiday season a winning one, by deepening customer confidence and driving growth. At Google, we are ready to provide you with the tools, insights and support you need to make this your most successful holiday season yet."

The data underpinning these findings comes from research conducted by Ipsos and Angus Reid Group on behalf of Google, capturing multiple perspectives from Canadian shoppers aged 18 and over across several studies conducted in 2024 and 2025.