This early-bird trend, combined with user’s interest for AI while shopping, is changing the way brands are getting ready for Christmas. While corporate giants have endless resources for broad personalisation and huge campaigns, small brands have a secret weapon: agility, speed, and the unique ability to test and deploy new AI tools that add a human touch to technology.

In this article, Flowwow’s COO Vera Modenova, takes a look at how UK startups are using AI to make sales during this time truly magical and profitable.

AI as a discovery channel

AI is becoming one of the highest-quality acquisition channels with data showing that users who discovered a brand with the help of AI not only spend 23% more time on site but are also twice as likely to make a purchase. Users are getting more picky and go to Generative assistants – whether it’s ChatGPT, Google Gemini, or Perplexity – with more personalised and emotional queries: “Find the best sustainable local brands for gifts under £50,” or, “Suggest unique gifts for my partner who loves cosy evenings, cartoons, and baking.”

This creates a new form of AI-SEO: optimising product descriptions, FAQs, and content so that AI assistants can recognise and recommend your brand.  By reacting fast with optimised and human-focused content, startups can catch this wave of AI recommendations.

Etsy combines AI tools with human curation to help small sellers save time on bettering customer service and compete wisely while keeping the heart and craft of their small business. Their approach, ‘algotorial’ curation, is all about blending algorithms with editorial insight. It includes AI-powered listing title suggestions, automated personalised replies, and image-matching search tools. Flowwow, a global gifting marketplace, delved into the pain of finding the perfect present. Its AI-powered Gift Assistant, integrated with ChatGPT, is designed to reduce gift discovery time by 30%.

Smart personalisation for genuine loyalty

Сustomers now cherish personalisation more than ever, and with AI-tools it’s easy even for small teams to adapt their offerings to create an interactive, adaptive buying journey. According to BCG, 60% of British consumers say they want to use AI features like voice search or virtual try-ons when shopping online, and this level of service is commercially sound, boosting conversions by an average of 20%. AI analyses a user’s real-time behaviour to predict their needs, so that brands can offer solutions even before customers can think of any lapse. Such proactive care can foster loyalty and reduce the risk of returns or cart abandonment.

The fashion world is proving that personalisation doesn’t mean sacrificing luxury. Glami.AI provides virtual stylist plugins for brands like Burberry and Gucci, integrating augmented reality try-ons and live consultations. These tools help to reduce the top reason for returns – sizing issues – and make people much confident about their luxurious purchases. Google reports that retailers using virtual try-on technology see conversion rates rise by up to 94%. For startups, even small AI-powered implementations can make a big difference. 

Delivery and trust issues

Delivery is always tough, but as for the peak season, it’s a true trouble spot. In the UK, 80% of online shoppers abandon their cart if they can’t find a suitable delivery option. AI helps solve this by predicting demand, optimising delivery routes, and improving real-time communication. The 'last mile' is a critical stage where convenience and transparency are non-negotiable. And that’s when AI can also step in to better customer experience and help customers finish their check-outs. By analysing historical orders, peak loads, and customer preferences, AI helps start-ups forecast volumes accurately, further offering more reliable and faster updates on orders.

London-based ultrafast grocery service Zapp has built its entire model around its last-mile reliability through local dark stores across premium neighbourhoods. Zapp uses a machine learning demand prediction-by-a-postcode system to forecast exactly what products will be needed and where. This allows them to manage inventory and logistics cost-effectively while still maintaining their 20-minute delivery promise. 

Social commerce and AI-first marketing

By 2030, 53% of UK consumers are expected to make most of their purchases directly through social platforms, and AI only contributes to that. Based on the data of user interests and behaviours, brands can create exactly that type of content its target audience is craving, deliver value and engagement right at the moment of interaction, driving conversions directly within the social media and further deepening connection with the user.

Sephora’s AI-powered Virtual Assistant app allows customers to try on makeup virtually using AR and then provides personalised product recommendations based on their skin tone. This hands-on, high-engagement approach reduces the anxiety of buying cosmetics online while boosting sales and encouraging social sharing. The result of such an AI-solution within one app is higher engagement, reduced uncertainty, and fewer returns. 

The festive season is a time when people spend generously, but emotions remain the main trigger, and it’s crucial to work with them wisely. Start-ups that want to catch the moment of booming sales and secure a lasting place in their customers’ lives well beyond the New Year, should better combine the speed and efficiency of AI with a forever inclusive human touch.