PayPal reveals that over one in three Brits use AI for Christmas shopping

As nearly half of Brits (45%) plan to start their Christmas shopping by the end of October, new research from PayPal has found artificial intelligence could fast become Santa's newest helper. With more than one in three (35%) already using, or planning to use, AI to help tackle their Christmas shopping this year, Brits are turning to the technology to help make festive shopping more efficient by helping them find deals or compare prices (52%) and research products (51%).

It’s also being used to help find the perfect present, with nearly two in five (39%) saying they would use AI for personalised gift recommendations, and the same number (39%) would use it to identify this year's must-have presents.

Early Festive Spending and Flexible Payment Habits

The use of AI comes as 25% of Brits say they are starting their Christmas shopping earlier this year. PayPal's research found that almost half of Brits (45%) will have started their festive shopping by the end of October, with more than one in five (22%) planning to already buy gifts in September.

By the time Black Friday arrives on 27 November, almost two-thirds (61%) of consumers expect to have already begun ticking items off their Christmas lists. Women are leading the early shopping charge, with 53% planning to start by the end of October, compared with 35% of men.

Instead, shoppers are spreading the cost of Christmas across a longer period and using digital tools to manage their budgets. More than one in four (28%) plan to use loyalty points or rewards schemes to help fund festive purchases, while 11% expect to use flexible payment options, such as PayPal Pay in 3 and Pay in 30, to better manage spending.

The ability to spread the cost is an important part of Christmas shopping, with one in three consumers (33%) having already used, or planning to use, Buy Now, Pay Later this festive season. The trend is particularly strong among younger shoppers, with half (50%) of 18 to 34-year-olds turning to BNPL as they seek greater control, convenience and confidence over how they pay.

Dave Jones, Head of UK Consumer at PayPal, said: "The festive shopping season is no longer a sprint in December, for many consumers it's already well underway by the autumn. That combined with the headwinds Brits are facing this festive season, it's no surprise that many are already thinking ahead to Christmas as soon as festive products begin appearing on shelves.

"British shoppers are among the most resourceful and adaptable, embracing new ways to make their lives easier, whether that's starting their shopping earlier, adding some flexibility by spreading costs over time, or using AI to compare deals and take some of the stress out of Christmas and gift buying.”