How Gen Z Is Shopping This Holiday Season — Powered by AI Personalization

Thanksgiving 2025 marks a turning point in holiday shopping.

For the first time, Gen Z....now the most influential consumer generation....is shaping the entire retail strategy with one expectation:

“Know me. Don’t sell to me.”

This shift is rewriting how brands design campaigns, personalize deals, and even produce holiday ads. And the catalyst behind this dramatic behavior change?

👉 AI-powered personalization.

From Coca-Cola’s AI-generated storytelling to Perplexity’s “conversational personal shopper,” the 2025 holiday season is the first where Gen Z is shopping with AI rather than just through brands.

Below is a full breakdown of how Gen Z is behaving differently this season... and what AI has to do with it.

Gen Z Isn’t Browsing — They're Conversing

AI Agents Have Replaced the Traditional Search Box

Perplexity’s new AI personal shopper was the first clue.

Instead of endlessly scrolling through product pages, Gen Z is now asking:

• “What should I get my sister who loves cozy winter aesthetics?”

• “Find me alternatives to UGG boots under $100.”

• “Show me sustainable gifts trending on Reels.”

  
  

The AI then filters:

✔️ budget

✔️ aesthetic

✔️ brand ethics

✔️ social-media popularity

✔️ size/color preferences

✔️ past queries

…just like a human personal shopper.

This conversational style has made Gen Z’s shopping smoother, faster, and far more curated.... and retailers are scrambling to match this new journey.

image source : mashable

AI-Generated Content = Faster Inspiration

Gen Z is buying what they see in AI-powered “gift moodboards”

Generative AI has quietly replaced traditional product discovery.

Brands like Mondelez (Oreo, Chips Ahoy) are using generative AI to create:

• micro-targeted visuals

• hyper-personalized social ads

• localized gift guides

• dynamic creative variations

  
  

…and Gen Z is engaging.

Instead of generic Black Friday banners, Gen Z now sees ads like:

“Holiday treats for night owls who binge anime.”

“Dessert ideas for Friendsgiving chefs.”

“Snacks for your long winter drive playlist.”

It’s personality-driven.

It feels made for them.

It’s not a catalog....it’s a vibe.

Gen Z Is Rewarding Brands That Use AI Ethically

Coca-Cola’s AI holiday ad is the perfect example, both praised and roasted.

Coca-Cola leaned heavily into AI-generated creative last year.

Some Gen Z viewers loved it for its:

• originality

• stylized animal-focused visuals

• “AI nostalgia” aesthetic

  
  

Others criticized it for:

• lack of human warmth

• overly synthetic look

• “corporate AI energy”

  
  

But here’s the real insight:

➡️ Gen Z doesn’t hate AI. They hate low-effort AI.

➡️ They reward creativity but punish laziness.

If a brand uses AI as a tool (not a shortcut), Gen Z engages.

If a brand uses AI to replace craft, Gen Z calls it out.

This is forcing marketers to find a balance: AI speed + Human soul.

image source : AINVEST

AI Is Quietly Rewriting the “Deals & Discounts” Game

Personalized pricing, tailored bundles, and behavior-based offers are the new norm.

Gen Z no longer waits for blanket deals.

They expect:

• Personalized gift bundles

• Dynamic pricing based on loyalty

• Recommendations based on their browsing behavior

• AI-curated Amazon wishlists

• TikTok/Reels-inspired item pairings

  
  

Example: AI-tailored bundles like “Under $50 gifts for your long-distance bestie” have seen drastically higher conversion rates with Gen Z.

This micro-personalization is made possible by the same generative and predictive AI tools used by retailers like Mondelez and Amazon.

Gen Z Wants the Experience, Not the Sale

AI is powering the storytelling now.

The classic “doorbuster” Black Friday frenzy is disappearing.

Gen Z doesn’t care about chaos, crowds, or 70% off signs. They care about:

• How a brand makes them feel

• Whether a product aligns with their identity

• Whether the experience is worth sharing

• Whether the brand is authentic

  
  

That’s why AI-driven campaigns that focus on:

• values

• personality

• creativity

• humor

• social connection

…tend to win.

Coca-Cola’s AI story around “the givers of the season”or Netflix x Chips Ahoy’s AI-coordinated holiday flavor pairings felt more like experiences than promotions.

And Gen Z responds to experiences....not transactions.

The Big Shift — From “Mass Marketing” to “Me Marketing”

AI is enabling what marketers have chased for years.

For the first time, brands can:

• create hyper-personalized creatives in minutes

• deliver tailored messages at massive scale

• adjust visuals based on micro-trends

• customize gift guides for every persona

• recommend products with near-human accuracy

  
  

The holiday season has transformed into a scaled, personalized experience, and Gen Z is the biggest driver of this shift.

So… What Does This Mean for Marketers?

To win Gen Z this holiday season, brands need to embrace:

• Conversational commerce

AI agents > search bars.

• Creator-style generative content

Personality > perfection.

• Ethical, tasteful AI usage

Craft + AI > shortcut AI.

• Personalized holiday journeys

Bundles, recommendations, and moodboards tailored to every micro-segment.

• Emotional storytelling

Gen Z buys the story, not the sale.

The Future of Holiday Shopping Is Here... and It’s Personal

Thanksgiving 2025 previews what holiday shopping will look like for the next decade:

AI is the new personal shopper.

Gen Z is the new decision-maker.

Personalized, conversational, values-based shopping is the new normal.

Brands that adapt to this shift will own the next generation of holiday loyalty.

Those that don’t?

They’ll be left behind... scrolling through their own abandoned carts.