Rise of the AI-Assisted Shopper: What Drove 2025’s Holiday Retail Records

As the 2025 holiday season comes to a close, early data reveals another strong year for consumer demand, with digital commerce setting multiple new records. Preliminary results from Mastercard SpendingPulse show holiday retail sales (excluding automotive) rose 3.9 percent year over year from Nov. 1 to Dec. 21—slightly higher than last year’s 3.8 percent over a comparable, though slightly longer, period (November 1 to December 24) and exceeding analyst expectations of 3.6 percent.

Online shopping once again served as a major engine of growth. Adobe Analytics reported that U.S. holiday e-commerce sales reached a record $257.8 billion, from Nov. 1 to Dec. 31, up 6.8 percent from the previous year, powered by strong mobile adoption, which accounted for 56.4 percent of all online purchases. Cyber Week (from Thanksgiving through Cyber Monday) alone generated more than $44.2 billion in online sales, marking a 7.7 percent increase over last year. Interestingly, Black Friday grew even faster, generating $11.8 billion in online purchases, a 9.1 percent increase, as many consumers jumped on early deals.

These record-breaking sales and shifts in consumer behavior seem to have been partly supported by the increasing role of artificial intelligence. Evidence showed that traffic to U.S. retail websites from AI-powered search and chat tools grew dramatically (over 690 percent according to Adobe’s analysis) compared with last year, signaling that consumers increasingly rely on AI to discover products and compare deals.

While the overall user base is still modest, these tools were particularly popular for categories such as video games, toys, electronics, appliances, and personal care items. From my own holiday shopping experience, the impact of AI was easy to notice. These tools went beyond just helping me find products—they actually completed tasks on behalf of consumers, such as processing returns, updating order details, and answering common questions like, “Where is my order?” This hands-on assistance not only made the shopping experience faster and more convenient but also demonstrated how AI agents are becoming an essential part of holiday retail operations.

It’s a bit early to be thinking about it, but optimism for the 2026 holiday season remains despite lingering economic uncertainties. Shoppers—especially with the help of AI—might just be ready to make next year’s holiday season even “smarter” and more successful.

Views expressed on The 338 are those of the authors and do not imply endorsement by the Texas Real Estate Research Center, Division of Research, or Texas A&M University.