Can AI Pick the Perfect Christmas Gift?

As the festive season approaches, many of us face the annual challenge of choosing the perfect gifts for friends and family. This year, Josie Hughes from Eastbourne decided to try something different: she turned to artificial intelligence (AI) for inspiration.

Hughes, who works at the Institute of Analytics and is well-acquainted with AI, often uses it in her professional life. For example, she relies on it to help write emails due to her autism and ADHD, which can make such tasks challenging. This time, she wondered if it could ease the stress of Christmas shopping.

“With Christmas coming up, I thought, ‘I wonder if AI can help me,’” Hughes explains. She asked ChatGPT to suggest gifts for her nine-year-old brother, who loves outdoor activities.

“It recommended a slackline — like a tightrope — as well as a fishing kit and a survival kit,” she says. “He lives in a woodland area, and I was really impressed. I hadn’t thought of those gifts.”

The experience saved her time and hassle. “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.” This Christmas, her brother will unwrap a slackline.

Brits Turn to AI for Holiday Shopping

The trend of using AI for gift-giving is gaining momentum. Brits are projected to spend £28.6 billion on Christmas presents this year, according to research by comparison platform Finder. That’s up from £27.6 billion in 2023, with an average spend of £596 per person.

Increasingly, generative AI is becoming a part of the shopping process. A recent global survey by Accenture found that 95% of consumers believe AI can help them find better gifts, while 90% value its recommendations.

A New Kind of Personal Shopper

Beyond popular tools like ChatGPT and Google’s Gemini, dedicated AI-powered gift generators are also attracting attention. US-based GiftList, for example, offers an AI-driven gift list generator. By asking shoppers for details about the recipient and their interests, it provides tailored suggestions linked to products on its site.

Jon Jaklitsch, the company’s chief executive, explains that their AI chatbot has evolved over the past year to create a more conversational experience. “Before, it would give you five ideas, but it wasn’t something you could go back and forth with. We found people wanted that,” he says. The company now collaborates with 50,000 retailers to provide recommendations.

But does using AI feel impersonal? Jaklitsch argues otherwise: “It’s really meant to be a helpful assistant… a sounding board.”

GiftList faces competition from other platforms like Cool Gift Ideas and MyMap.AI, which offer similar services. According to Linda Ellett, UK head of consumer and retail at KPMG, such tools echo how traditional shopping once worked. “You used to go into a store and ask for advice, like what to buy a niece for her birthday. Online shopping never had that aspect, but AI is bringing it back.”

Ellett believes generative AI could revolutionise online retail. “If this becomes the norm, it could significantly change how consumers are routed to retailers’ sites and pose challenges for search engine advertising and sponsored link costs.”

A Mixed Bag of Results

Not everyone’s experience with AI gift recommendations has been seamless. London-based Polly Arrowsmith, a marketing director and self-proclaimed skilled gift-giver, decided to test AI’s abilities out of curiosity.

For her sister’s 60th birthday, she provided ChatGPT with details: her sister enjoys walking, relaxation, and Neom candles. However, the suggestions were underwhelming. “It came back with generic ideas like a tote bag, a diary, and posters with inspirational quotes. My sister would think I’d lost the plot if I gave her that,” Arrowsmith says.

Yet, the AI excelled in other cases. For her 47-year-old tech-savvy partner, it suggested specific noise-cancelling headphones, which she considered a strong option.

However, its recommendations for her 83-year-old father were disappointing. Despite mentioning his love for walking, culture, and reading, the AI proposed items like a foot massage machine and a personalised walking stick. “It assumed that because he’s 83, he must be in physical decline, but he’s very fit and a member of two walking clubs,” she explains.

Overall, Arrowsmith sees AI as a useful starting point but believes a personal touch is still essential. “It’s a good tool if you don’t know where to start, but you need some understanding of the person to refine the suggestions.”

Tips for Using AI Effectively

According to Dmitry Shevelenko, chief business officer at Perplexity, an AI-powered ‘answer engine,’ specificity is key when using AI for shopping. “The more details you provide, the more relevant the recommendations will be,” he says.

Instead of vague queries, shoppers should be precise. For example, rather than asking for the “best coffee maker,” specify requirements like “the best espresso machine under £500 that also includes a coffee grinder.”

Shevelenko notes that nearly 10% of all searches on Perplexity during Black Friday were shopping-related. “We expect this trend to continue through the holiday season, given it’s the busiest shopping period of the year.”

While AI may not always hit the mark, it’s clear that it’s becoming a valuable tool in the quest for the perfect Christmas gift. With a bit of fine-tuning and personal input, AI could make holiday shopping a little less stressful — and a lot more efficient.

Source: https://www.bbc.co.uk/news/articles/ckgxv7jk0z1o