AI & digital tools reshape how Australians choose & give gifts

Australians are increasingly using artificial intelligence and digital tools to improve their gift shopping experience, with younger generations at the forefront of these changing habits. New data indicates that a significant proportion of shoppers are leveraging AI to find inspiration, compare prices, and choose gifts tailored to individual preferences.

AI-driven selection

Almost half of Australian consumers now use AI-powered tools during the gifting process. According to newly released research, 46% of shoppers use AI to compare products, 43% to find the best prices, and 36% to generate creative gift ideas. The data highlights a faster uptake among younger Australians, who are more than twice as likely to rely on AI for choosing and personalising gifts than their older counterparts.

"AI is transforming how Australians approach gifting. Instead of worrying about the details, Australians now have tools that deliver smarter, more personalised options in seconds. It's more than convenience - AI sparks creativity. Shoppers are inspired by gifts they may never have thought of on their own," said Kieran Nolan, Senior Director Retail, Blackhawk Network.

These tools are commonly used for occasions such as birthdays, housewarmings, and milestone events-times when balancing practicality with thoughtfulness can be a challenge. The research also suggests that shoppers trust AI to help manage budgets, compare features, and ensure value for money.

Digital gifting trend

Digital gift cards, or eGifts, have become commonplace across all age groups in Australia, according to the research. Sustainability factors are also influencing choices, with most respondents noting the environmental benefits of digital over traditional plastic cards. eGifts, the report states, offer a 97% lower carbon footprint.

AI now plays a growing role in the path to purchase, not only helping consumers select the right type of gift card, but also enabling customisation through tailored messages and imagery. This helps transform eGifts from a generic choice into what many perceive as a more considered and personal gesture.

Shoppers' perspective

Australian consumer Tom Litchfield shared his experience:

"AI feels like a personal shopper. It does the legwork, providing inspiration and allowing me to focus on the thought behind the gift."

"I've been turning to AI for inspiration when I want a gift to feel considered, but I may not know the person well, or I'm working to a budget. One time it suggested a voucher for a hot springs experience, which ended up being such a hit - it felt thoughtful without being over the top," said Litchfield.

"Sometimes it takes me on a path I'd never think of on my own. For example, AI suggested a champagne sabre paired with a nice bottle of champagne to celebrate my parents' newly purchased home. They were able to open the bottle with the sabre, turning the gift into a fun, memorable moment," said Litchfield.

Market outlook

Blackhawk Network anticipates continued evolution in gifting as both digital and AI-powered solutions gain traction. Its research points to a future where younger generations, accustomed to using AI daily, are likely to further shape consumer expectations around shopping, gift giving, and personalisation.

"At BHN we're excited about how AI can complement our extensive range of gift cards and digital gift offerings by helping Australians match the right product to the right person. Whether it's a retail gift card, adventure or travel experience, or a gaming and streaming subscription, AI makes it easier to take our portfolio and personalise it in meaningful ways," said Nolan.