Holiday shoppers turn to AI & cashback as inflation bites

Minty has released a consumer study on holiday shopping behaviour, finding that inflation concerns are pushing shoppers towards artificial intelligence and savings tools.

The study of 1,015 US adults found that 91% of respondents were concerned about inflation, while 79% planned to spend the same amount or more than a year earlier. Nearly all respondents, 96%, expected to use at least one strategy to stretch their budget during the holiday shopping season.

One of the clearest shifts was the use of artificial intelligence in shopping decisions. According to the study, 54% of shoppers planned to use AI during the holiday period, while 44% said they were using it more for shopping than they had last year.

Price discovery was the most common use case, with 52% saying they would use AI to find the best price. Another 45% would use it to discover gift ideas, and 38% would use it to compare products, brands or retailers.

Time savings also featured prominently. Sixty per cent of respondents said AI would save them time during the season, and 59% expected it to cut as much as 25 hours from their shopping effort.

Savings stack

The report pointed to a broader pattern of shoppers combining multiple tools rather than relying on a single discount or sale period. On average, shoppers expected to use three separate savings strategies, including AI tools, cashback offers and comparison shopping.

Cashback and savings apps or browser extensions were especially prominent, with 67% of respondents planning to use them. Features such as high cashback rates, automatic savings and coupon finding ranked highly.

Users of cashback and savings tools intended to spend 30% more than non-users. Nearly half of those using such tools said they planned to increase holiday spending, compared with 13% of non-users.

That suggests cost-conscious consumers are not necessarily pulling back on seasonal spending. Instead, they appear to be seeking reassurance that they are getting a better deal before buying.

The survey also suggested that shoppers are starting earlier. More than a quarter said they would begin shopping before October, while 14% said they had already started, aiming to capture discounts over a longer period.

Value focus

Price and access to the best available deal were the biggest influences on where consumers chose to shop. The findings suggest retailers face a customer base that is still willing to spend, but less willing to buy without first checking prices, offers and alternatives.

The results were broad-based across age, gender, region and household income, indicating that the shift towards savings tools is not limited to one demographic group. Expected savings were also notable, with 42% of shoppers saying they expected to save between USD $50 and USD $200 over the season, and a further 13% expecting to save more than USD $200.

For Minty, the data supports the view that digital shopping aids are becoming embedded in consumer behaviour rather than used occasionally. It described the combination of AI, cashback and price checking as a practical response to inflation and time pressure during the holiday period.

Rodney Mason, Chief Marketing Officer at Minty, commented on the findings.

"Holiday shoppers are using AI and cashback to optimize two things they never have enough of during this busy season - money and time," said Rodney Mason, chief marketing officer at Minty.

"They still want to participate in the season, but they want technology to help them be more in control of the value they get from every purchase. For retailers, that means the most price-conscious shoppers may still be some of the most valuable, and winning them will increasingly depend on proving value quickly, reducing friction and making it easier to find the best deal," Mason said.