Consumers are embracing AI for holiday shopping faster than retailers are preparing for it, according to new research from Narvar, an AI-powered platform that delivers brand hospitality at scale.
The report finds that 65% of consumers plan to use AI for at least one part of their holiday shopping this year, yet only 8% of retailers describe themselves as very confident in using AI to improve the shopping experience.
That gap sits at the center of Narvar’s 2026 Holiday Shopping Report, which surveyed 100 retail decision-makers and 1,348 U.S. consumers on where retailer plans align with, and diverge from, what shoppers actually expect this season.
Consumers described several specific ways they intend to use AI this year:
- 43% for gift discovery
- 33% for comparing products and summarizing reviews before buying
- 29% for budgeting and planning their holiday spend
- 15% for managing what happens after checkout, including package tracking and return reminders
Nearly 8 in 10 shoppers (78%) said they would use AI-powered tools if doing so made their shopping experience feel more personalized. Retailers are watching this shift unfold from a distance. Only 14% expect greater use of AI shopping assistants to be the biggest behavioral change this season, and most are still concentrating their attention on shipping costs, discounts, and operational execution.
“Consumers aren’t waiting for retailers to catch up,” said Anisa Kumar, CEO of Narvar. “They’ve already brought AI into how they discover gifts, compare prices, and decide what to buy. The retailers who win this season will be the ones who meet that shift with a purchase and fulfillment experience that actually lives up to what AI has trained shoppers to expect.”
A hidden tension in “free” shipping
That expectation runs deeper than product discovery, and it shows up most clearly around delivery. Most consumers (76%) say they would accept slower delivery in exchange for free shipping. But when Narvar asked shoppers directly what timeframe felt acceptable for a free-shipping order, nearly 30% said same-day (11%) or next-day (18%) delivery should still be the standard, a bar few retailers can meet profitably without charging for it.
“That number should get retailers’ attention,” Kumar said. “Shoppers tell us they’re willing to trade speed for free shipping, and most of them mean it. But a meaningful share still expects free to also mean fast. Retailers need to set the delivery window clearly at checkout and hold to it, because the promise matters as much as the price.”
Promise-keeping, more than promise-speed, appears to drive the purchase decision overall. Reliable delivery dates influence 49% of consumers’ purchase decisions, a figure that nearly matches the 51% of retailers who already cite delivery-date accuracy as a top conversion strategy. Fifty-eight percent of shoppers plan to start their holiday shopping earlier than they did last year, even though 77% of retailers have no plans to incentivize early shopping. And despite affordability concerns showing up throughout the data, 63% of consumers expect to spend more this holiday season than they did in 2025.
“Retailers don’t need to win on speed alone,” Kumar said. “They need to be honest about the delivery window, consistent in meeting it, and ready for a shopper who now uses AI to hold them to that promise.”
The survey also finds:
- 45% of shoppers cite having enough money for gifts as a top concern, even though 66% say they have access to extra cash for unplanned purchases most or all of the time.
- 56% of consumers have delayed or avoided a purchase because they were uncertain how long a refund might take.
- 46% say they avoid retailers that charge for returns altogether.
- 37% experienced a late package last year, and 23% were told a package had been delivered when they never received it.
- 51% of consumers say avoiding delivery issues, offering a hassle-free return experience, and providing a discount would each make them want to shop with a retailer again after the holidays.
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