Happy Holidays for Experiences, AI, and Omnichannel

Shoppers are hunting for value this holiday season, as I’ve reported. What else are they looking for when it comes to choosing brands and products – and what are the indirect tax implications associated with satisfying these preferences?

A few things come to mind in response to my decidedly rhetorical question.

First, more shoppers are interested in experiences in addition to products. Rather than simply replenishing their backpacking gear, outdoor types are increasingly interested in buying the gear in tandem with a Colorado Trail expedition led by a local outfitter. Rather than buying a new set of clubs, golfers may be enticed by pairing their gear purchase with a trip to The Masters. Some gift-givers choose to bypass products altogether – by purchasing concert tickets, for example. “Stores will excel either as high-experience destinations or high-efficiency transactional hubs, driving a clear bifurcation in the physical retail landscape,” according to BCG’s 2025 retail rundown. “Retailers will continue footprint rationalization while amplifying investments to transform every store into a destination that reinforces their customer value proposition.” The bundling of products and services poses tax determination and compliance challenges, as my colleague, Vertex Chief Tax Officer in Transaction Tax Michael Bernard, noted earlier this year.

Second, more consumers are using AI when shopping. According to PwC’s Holiday Outlook 2025 survey report:

• 15% of Gen Z and millennials expect to use AI to find gift ideas
• 76% of millennials say they're likely to use AI for travel recommendations
• 68% of overall consumers say they're likely to use AI for comparing flights

Recent Vertex research also shows that nearly one in three shoppers now expect retailers to incorporate AI-driven features into their holiday shopping experience. That said, most consumers (60%) still want to speak with a human when the need for customer services arises: phone support remains the top service channel, favored over live chat and email. Plus, the adoption of social selling continues to increase. This diverse channel use combined with AI-driven research increases the level of difficulty involved in sustaining a seamless omnichannel experience. Tax groups also contribute to the customer experience as they must ensure that tax calculations remain consistent across channels.

Third, the resale market is thriving and poised to continue growing. Younger consumers continue to demonstrate an interest in buying previously owned products, especially clothing. Many of these marketplaces operate across jurisdictions, which may trigger nexus in multiple states or countries.

As consumer shopping behaviors and preferences evolve across in-stores experiences, AI platforms, resale marketplaces, social media platforms, and other channels, tax teams must maintain compliance across all channels and jurisdictions. Tax automation solutions enable your team to deliver accurate, real-time tax calculations across every touchpoint while supporting the seamless customer experience that drives holiday success.