UserTesting research reveals Gen Z and Millennials are turning to AI to outsmart Black Friday amid economic pressures

The 2025 holiday season will be shaped by two powerful forces: economic pressure and the rise of artificial intelligence. According to new research from UserTesting, the leading provider of human insights for the enterprise, shoppers are entering the season prepared to battle tariffs, inflation, and crowded stores, and they’re increasingly relying on AI to do it.

Conducted with Talker Research, the study surveyed 4,000 consumers across the U.S., U.K., and Australia to uncover how shoppers are preparing for Black Friday in a new era of economic strain and digital innovation.

AI Becomes the Shopper’s Secret Weapon

One in three consumers plan to use AI as part of their holiday shopping this year, with adoption highest among Gen Z (56%) and Millennials (50%).

Top ways shoppers are using AI include:

• Brainstorming gift ideas (39%)
• Finding the lowest prices (37%)
• Getting direct product links (36%)
• Checking whether a deal is truly worthwhile (30%)

Trust in AI is also growing fast: 64% of consumers now trust AI tools as much as, or more than, friends and family for gifting advice, rising to 76% among Gen Z. Beyond recommendations, over half say AI reduces stress and fatigue during holiday shopping.

“Think of AI as the holiday sidekick we didn’t know we needed,” said Bobby Meixner, Vice President of Solution Marketing at UserTesting. “It’s giving shoppers fresh ideas, uncovering smarter deals, and helping them put more meaning into every gift. That’s why younger generations are leaning in; it makes tradition more fun and thoughtful.”

Younger Generations Fuel Holiday Confidence

Despite economic headwinds, consumer optimism remains strong: nearly two-thirds (63%) of all shoppers plan to participate in Black Friday this year, rising to 83% of Gen Z and 77% of Millennials.

Average planned spend is climbing across regions:

• United States: $449 (up from $423 in 2024)
• United Kingdom: £365 (up from £313 in 2024)
• Australia: AU$419 (up from AU$380 in 2024)

Half of Gen Z (54%) and nearly half of Millennials (46%) expect to increase their spend year over year. Many are preparing early: 64% of U.K. shoppers, 59% in the U.S., and 55% in Australia say they are already setting aside money ahead of Black Friday.

Social commerce is another driver: Gen Z reports buying 11–15 products this past year inspired by TikTok Shop, Instagram, Facebook Marketplace, or livestream content; Millennials bought 1–5.

Black Friday Still Draws Crowds, But Skepticism Persists

Even as participation remains high, many shoppers question the value of Black Friday. Over a third (36%) say the deals are no better than those found year-round. Optimism is higher among Gen Z (50%) and Millennials (41%), who remain convinced Black Friday offers the best bargains.

When shopping online, consumers’ top demands are clear:

• Lower shipping costs (44%)
• Convenient in-store pickup options (20%)

Their top frustrations include:

• Inflation (36%)
• Crowded stores (32%)
• Product availability (29%)
• Difficult returns (31% avoid purchases for this reason)

Flexible return policies remain critical, with 81% of shoppers citing them as a key factor in where they choose to shop.

Balancing Excitement with Caution on AI

While shoppers are embracing AI, concerns remain around data privacy (25%), scams (19%), and the lack of human touch (19%). Still, most agree change is inevitable: Gen Z (81%), Millennials (70%), and Gen X (56%) all believe AI will transform how they shop within the next three years.

About the Study

The study was commissioned by UserTesting and conducted by Talker Research. A total of 4,000 consumers were surveyed between September 8 and September 16, 2025, including a nationally representative sample of adults (18+) across the United States (2,000), Australia (1,000), and the United Kingdom (1,000).

For the complete breakdown of how consumers in the U.S., U.K., and Australia are preparing for the holiday season, click here.

About UserTesting

UserTesting enables organizations to craft exceptional customer experiences through actionable human insights. With the world’s strongest participant network, AI-driven insights, comprehensive feedback solutions, and expert-level services, enterprises can validate decisions, co-innovate at scale, and accelerate their path to better products and experiences. Trusted by 3,000+ customers, including 75 of the Fortune 100, UserTesting is the partner of choice for businesses committed to delivering experiences customers love. Learn more at www.usertesting.com.

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