For advertisers, the holiday season has always been a battleground for attention and conversions. Every festive season, marketers prepare for a contest of creativity, heart, and data.

But holiday shopping in 2025 comes with a twist: artificial intelligence now sits alongside every shopper and every tradition. From familiar human shopping behaviors—browsing social media, waiting for Black Friday, or impulse-buying in-store, AI has officially entered the shopping cart.

More than half of consumers now use AI tools for shopping, from price tracking and deal alerts to gift discovery and review summaries (Source: Simon-Kucher Holiday Shopping Report 2025).

This changes not just how people shop, but where ads need to show up.

For programmatic advertisers, the question isn’t just about reaching holiday shoppers. It’s about reaching the AI-assisted shopper—a consumer whose decisions are increasingly shaped by algorithms before they even see your ad.

Why Are AI Tools Becoming the New Holiday Helpers?

Simple answer: Because efficiency sells.

Consumers are busier than ever during the holiday rush, and AI is helping them cut through noise. According to Simon-Kucher, 54% of holiday shoppers already use AI to compare prices, track deals, and generate budget-friendly shopping lists.

And they’re using it before they even engage with ads.

This changes the funnel. A display ad for a $500 appliance is less effective if the shopper has already asked AI which retailers are offering the best deal. If your price or product reviews don’t align with what AI highlights, your campaign might get ignored—no matter how eye-catching the creative.

For advertisers, this means programmatic strategies must account for the “validation layer”. Transparency in pricing, authentic reviews, and competitive positioning are no longer back-end concerns—they’re part of your front-line ad strategy.

But Why Do Human Habits Still Matter in Holiday Shopping?

Even with AI in the mix, holiday shopping isn’t all codes and comparisons and many shoppers still resist outsourcing their holiday gift shopping choices. The urge to personalize, to scroll through Instagram for inspiration or to linger in-store for that serendipitous discovery, remains strong. Nearly half of shoppers still cherish the “joy of discovery,” preferring to choose gifts themselves rather than let algorithms decide. Because emotion drives purchase, not just logic.

• The joy of discovery: 46% of consumers say they prefer to personalize the gifting process themselves, says the same report.
• Inspiration blooms on social media: Social media browsing continues to shape ideas, with Instagram and TikTok leading for discovery.
• Tradition anchors behaviour: Boomers and Gen X, in particular, resist AI, preferring in-store browsing or familiar retail platforms.

This is where programmatic creativity matters. Story-driven CTV ads showcasing family moments, contextual ads tied to festive content, and vernacular creatives that “speak the shopper’s language” resonate more strongly than sterile product pitches. .

AI can validate what’s cheapest. Human emotion decides what feels right. And advertisers must speak to both.

How is the Path to Purchase Being Reshaped?

Think less in a straight line, more zig-zag.

Today’s path to purchase looks like this:

• Inspiration starts on Instagram, TikTok, and CTV, where influencers and creatives spark ideas.
• Validation happens with AI tools that check prices, track discounts, or summarize reviews.
• Conversion still happens in familiar spaces: Amazon, big-box retailers, and increasingly, direct-to-consumer channels.

For programmatic advertisers, this multi-touch journey highlights a key need: be present in both inspiration and validation stages. If you only show up at checkout, you’ve missed the consumer long before they reached the cart.

What Does This Mean for Holiday Advertisers?

The rise of AI shoppers doesn’t diminish the role of ads. It just raises the bar for relevance.

• Own the moments of discovery. Invest in CTV, social, and contextual ad placements where inspiration begins. For example, festive-themed ads on streaming platforms or creator-led campaigns on TikTok.
• Optimize for comparison. Make sure pricing, reviews, and product positioning stand up to AI validation. Inflated discounts or weak ratings will work against you when algorithms crunch the data. So let’s say you’re running retail media ads. The ads should highlight competitive discounts, bundled offers, or authentic reviews.
• Lean into trust. AI may guide efficiency, but people still want connection. Ads that emphasize authenticity, culture, and storytelling stand out against algorithm-driven sameness. For example: vernacular creatives or festive storytelling ads that reflect cultural moments like Diwali or Dussehra.

In 2025, holiday shopping is a hybrid experience: AI drives efficiency, while human habits drive emotion.

This holiday season is a hybrid: AI drives efficiency, but emotion still closes the sale. Marketers who show up at the right moments—blending savvy tech with real human resonance—will cut through the noise.Holiday sales in 2025 will go not to the highest bidder, but to brands that feel both smart and soulful.