• by Laurie Sullivan , October 22, 2025

Financial services company PayPal released its 2025 Holiday Shopping Survey on Wednesday, revealing how shoppers use AI to combine online and offline behavior to discover opportunities and rewards.

The shift toward AI-assisted shopping and value-conscious consumers will reshape media buying for advertisers.

For media buyers, this requires a dual focus that includes the use of AI-driven tools to enhance campaigns and adapt strategies to reach consumers who are increasingly using AI to find the best deals.

Buyers should also think about the content that posts to their websites, because the large language models will pull information from them to find the best answers.

This is how AI, the new influencer, will reshape discoveries and decisions this year.

The Holiday Shopping Survey found that around 77% of shoppers plan to use AI as a shopping assistant this holiday season, primarily to find the best deals. This underscores the need for merchants to appear where consumers search, whether on ChatGPT or Google and Bing.

PayPal commissioned Talker Research to survey 1,000 U.S. adults online from September 5 through September 9, 2025. The percentages for AI data reflect respondents who have used or considered using AI tools to help with a purchase in the past year. The percentages for BNPL data reflect respondents who have used or considered using the payment option to make a purchase.

Success for retailers and brands this season will hinge on visibility, flexibility, and seamless shopping experiences, according to the findings.

It's clear that omnichannel shopping will surge this holiday season. About 64% of consumers plan to shop in-store this holiday season, while 41% plan to shop online and in-store. No single channel dominates the holiday experience. 

About 28% of those participating in the survey plan to shop primarily online, and rewards will drive decisions. Seventy-four percent of survey participants said they are likely to buy from merchants offering cash back, loyalty programs, or perks.

Buy now and pay later (BNPL) has entered consumers' mainstream buying practices. Half of consumers said they plan to use BNPL as a flexible payment option for holiday purchases, citing affordability and budget control, while 52% say they are more likely to buy when it is available as a payment option.  

Gen Z and Millennials lead the adoption of BNPL. One in four use it regularly, and another third said they have tried it at least once, making BNPL a part of how younger generations prefer to pay, according to PayPal's survey.

Consumer intelligence company Measure Protocol today released its Measure Report 2025, which reveals how generative AI and social commerce platforms are reshaping consumer research and purchase behaviors, as consumers begin thinking about holiday shopping.

The report reveals that 21.6% of ChatGPT interactions now demonstrate some commercial intent, with 7.1% showing high intent for shoppers and strong purchase signals. Business finance at 34% and product comparison at 28% dominate these conversations.

Based on analysis of ChatGPT conversations from 3,458 users during a five-month period, more than 800,000 TikTok sessions, and six months of cross-platform behavioral data, Measure Report 2025 provides a look at how consumers are integrating AI tools into their search and shopping journeys.

Fundamental shifts are taking place before this year's holiday shopping season officially launches. The most important for advertisers is to consider points to the end of last-click attribution. The rise of AI-powered research and omnichannel shopping has rendered the outdated, single-channel measurement approach ineffective. 

With consumers researching across multiple platforms before purchasing, single-platform attribution models overstate the importance of final touchpoints while missing complex research journeys that drive decisions.

Consumers are expected to spend $1,595 on average this holiday season, with a decline in spending by 10% compared with the previous year, according to a Deloitte online survey of 4,270 consumers released Wednesday.

The 2025 Holiday Retail Survey was conducted by an independent research company and fielded between August 27 and September 5.

The survey data found that consumers plan to use generative AI (GAI) search-based tools to gain inspiration and to shop. About 33% of shoppers plan to use generative AI -- double the percentage during the past year.

Some 68% of respondents said they will use all types of tools that allow them to compare prices and products. Social media still leads in holiday inspiration, with 59% of those surveyed using it to shop.

Some 89% of survey respondents said they will search for deals, while 77% said they will trade down to lower-tier retailers and brands, perhaps because 77% anticipate higher prices on holiday items.

Fifty-seven percent expect the economy to weaken next year -- the poorest outlook since Deloitte began tracking economic sentiment in 1997, according to the survey.

Seven in 10 Deloitte survey respondents said they plan to seek more value for dollars spent. Seventy-eight percent of women said they are significantly more likely to do so-- compared to 58% of men, and most millennials said they will seek deals.

Most consumers surveyed -- at 89% -- plan to seek out deals, and 75% say they will shop during promotional weeks and add items to wish lists.

Forty-nine percent said they will wait for deals, while 77% are willing to trade down on brands and retailers, 52% said they will re-gift items they don't like or want, and 49% will make their own gifts.

One-quarter of consumers surveyed plan to use loyalty points -- up from 20% in 2024.