Santa’s little helper? Singapore shoppers turn to AI this holiday season

Singapore consumers are gearing up for a largely digital holiday shopping season, with 70% planning to make most or all of their purchases online and mobile emerging as the device of choice, according to a new study by Integral Ad Science (IAS).

The "Holiday shopping in Singapore" study found that 71% of consumers expect to use their mobile device most when shopping this holiday season, as shoppers increasingly turn to digital channels to research products, hunt for deals and make purchases.

AI is also beginning to find a place in the holiday shopping journey, with 67% of consumers open to using AI tools to help with their shopping this season. Meanwhile, 22% plan to use AI specifically to research products and gift ideas online.

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Social media and eCommerce or retail sites are set to see some of the biggest increases in activity, with 55% of consumers planning to use each more while shopping for the holidays. Meanwhile, 40% expect to increase their use of YouTube and other video platforms, while 30% plan to use AI tools more.

The shift towards digital shopping comes as consumers become more deliberate about how they spend. While 81% expect to maintain or increase their holiday shopping budgets compared with last year, 62% said they will pay closer attention to sales and discounts.

Higher prices are also shaping shopping habits, with 51% planning to begin shopping earlier to avoid higher prices and 32% expecting to reduce the number of gifts or products they purchase.

Timing remains relatively concentrated towards the end of the year, with 61% of consumers planning to start their holiday shopping in October or November and 79% expected to have begun before December.

Discounts and promotions are expected to play a particularly strong role in purchase decisions, cited by 73% of consumers as an influence, followed by word of mouth at 43%.

The increasingly digital shopping journey could also give advertisers more opportunities to reach consumers before they make a purchase. According to the study, 44% of consumers find online ads useful when planning both online and in-person shopping, while 41% are open to online advertising during the holiday shopping season.

Meanwhile, 36% believe online ads can save them time when researching gifts. Nearly seven in 10 consumers (69%) also said online advertising is important for discovering new products and promotions, while 71% said it can make finding products and promotions easier.

Relevance and placement could prove important in determining whether those ads resonate. Nearly half (47%) said ads recommending products or promotions based on previous purchases are helpful, while 44% said the same of advertising that is relevant to the content they are consuming.

Another 44% said advertising appearing on sites they consider safe and reputable is helpful, pointing to the role of contextual relevance and brand-safe environments as advertisers compete for shoppers' attention during the holiday period.

The findings come as other research points to a more cautious approach to AI in the wider shopping journey. A recent global study by VML found that while 82% of consumers have used AI, shoppers are largely using it for routine tasks rather than handing over purchasing decisions. Among those surveyed, 58% said they cross-check AI-generated product recommendations before buying, while a third said they would never allow AI to make purchases on their behalf.

Trust around AI-generated content also remains a concern. VML's 10th annual "Future shopper" report, which surveyed 28,000 consumers across 17 countries, found that 49% said AI-generated imagery reduces their trust in a brand, while 48% skip content they suspect was created using AI.

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