Canadian shoppers use AI for deals, ideas, and budgeting without raising total spend
Canadians aren’t spending more this holiday season—but they are quietly changing where their money goes and how they decide what to buy, with direct implications for small-business clients and retail-facing portfolios.
According to a BDC survey, Canadian households plan to spend an average of $943 on holiday purchases this year, with 59 percent of that budget (about $553) going to Canadian products and services.
That local spend is expected to contribute roughly $11bn to GDP and support 45,000 jobs.
The key point for advisors: the story is reallocation, not expansion.
Only 17 percent of Canadians plan to increase their overall holiday spending, yet 46 percent intend to increase spending on Canadian products and services.
BDC estimates that if households redirected just $100 more of their existing holiday budget toward Canadian products, the local share would rise to $653 and the impact would grow to $13bn, supporting 55,000 jobs.
BDC also notes that the holiday period still accounts for nearly 20 percent of annual retail sales (excluding vehicles, building materials and gas), and up to 26 percent for jewellery and leather goods—underscoring how make-or-break Q4 remains for many small firms.
At the same time, consumer behaviour around decision-making is shifting.
An Omnisend survey of more than 1,000 Canadians reports that 76 percent plan to cut back on holiday spending this year, but 78 percent are turning to AI tools to save time, money, and mental bandwidth.
According to the survey, Canadians are already using AI to find the best deals, generate gift ideas, write gift messages, create personalized gifts, and help with planning and budgeting.
Roughly 28 percent say AI makes online shopping less overwhelming.
Omnisend also finds that only 32 percent of Canadians would flat-out refuse to let AI make purchases on their behalf, while 19 percent trust AI more than influencers for product recommendations, 13 percent trust AI more than friends for gift ideas, and 11 percent are more likely to complete a purchase when AI supports the decision.
