Google Predicts Record Holiday Spending in Canada—Fueled by AI

Canadian shoppers are heading into what Google calls the country’s first ‘AI-powered holiday season,’ with nearly half planning to use artificial intelligence tools to help decide what to buy.

According to new data shared by Google Canada, 43% of shoppers say they’ll turn to AI for product ideas, price comparisons, and research before making a purchase. The trend is strongest among Gen Z and millennials—groups that are already comfortable using technology in their shopping habits.

Eric Morris, Managing Director of Retail at Google Canada, said consumer behavior has evolved after years of economic uncertainty. “A new kind of Canadian shopper has emerged,” he said on Monday, describing them as “more resilient, more researched, and demanding more from every single dollar they spend.”

The study found that 64% of Gen Z shoppers use at least 10 sources when researching gifts, from videos to reviews to AI tools. Many also use visual search apps such as Google Lens to find products by snapping or circling photos on their phones.

Google says retailers can adapt by improving online product details, linking in-store and online shopping experiences, and creating more engaging videos to reach buyers earlier in the season.

Canadians are increasingly open to using AI for shopping advice, especially when it comes to big-ticket items. According to Google’s data shared with iPhone in Canada, 55% of shoppers think AI could provide helpful recommendations for consumer electronics and smartphones, followed by 50% for home appliances. Interest also extends to furniture and home décor (44%), clothing and footwear (43%), and beauty and personal care (41%). Even everyday categories like food and groceries (39%) are seeing growing trust in AI suggestions.

Last year’s Black Friday sales in Canada were up 7% from the previous year—a sign, Google says, that despite inflation, shoppers continue to spend during the holidays.