The news: Forty percent of US adults  have used AI as a shopping assistant in the past year, per a study by PayPal—and 77% of past or potential AI shoppers plan to use it while holiday shopping this year.

Younger consumers are driving the change. Sixty-one percent of Gen Zers and 57% of millennials have used AI to assist with a purchase in the past year. 

Why this matters: Partnerships with Perplexity and Google for genAI-backed commerce solutions place PayPal right where younger consumers are for ecommerce. 

Younger consumers are also more likely to take interest in PayPal’s buy now, pay later seasonal offerings—including 5% cash back on BNPL transactions: 1in 4 Gen Zers and millennials regularly using alternative credit to complete purchases, per the study. Sitting at the intersection of AI and BNPL, PayPal is likely to scoop up valuable holiday shopping volume from younger shoppers trying to score deals and avoid credit card interest.

Key AI uses: Consumers are turning to AI for shopping inspiration and value. 34% of holiday shoppers plan to use AI to find the best deals on a product, per PayPal, and 26% hope to discover new gift ideas or recommendations. 

Discoverability on AI platforms is critical for merchants not to be missed by these consumers as they gear up for the holidays—even better if consumers can also check out within an AI chat session.