Every holiday season, retail executives and parents ask the same question: what do the kids want this year? A Retail Dive deep dive by senior editor Cara Salpini, published October 13, 2026, answers it for both Gen Z and Gen Alpha. The article describes the youngest Gen Zs and oldest Gen Alphas as price-sensitive, digitally savvy, drawn to physical retail experiences, and influential in household purchases despite having little money of their own. It also notes one more distinguishing trait: both groups were exposed to AI early.
Retail Dive turned to Matt Britton, founder of AI consumer intelligence platform Suzy and author of Generation AI: Why Generation Alpha and the Age of AI Will Change Everything, to explain where Gen Alpha fits in the generational sequence.
"First was millennials, which were sort of the first digital generation. Then there was Gen Z, which was the first social media and iPhone generation, and now it's Gen Alpha, which is going to be known as the AI generation," Britton told Retail Dive.
"They're the first generation to grow up with AI in the household, and it's rewiring their brains in a way that's going to make them distinct," he said.
Britton described the path shoppers followed for roughly the last two decades: search on Google, see an ad on Instagram, then buy on Amazon. According to the article, he sees AI chatbots taking over discovery, engagement, and eventually purchasing, which makes a built-out AI strategy a requirement for retailers.
"The internet now has a new front door," Britton said.
The article points to retailers already investing in these channels, including the AI holiday gift finder Target launched in 2025 and a similar tool from Kohl's this year. Britton told Retail Dive that problems with completing purchases inside AI tools, such as those ChatGPT encountered with the debut of its Instant Checkout experience, are likely short-lived.
In this environment, the article notes, one of retail's fundamental rules becomes more important: building an emotional connection with shoppers outside of the transaction. AI does not understand the emotional reasoning that drives purchases, Britton said, "because AI has never had its heart broken or felt envy or jealousy."
On authenticity, he advised brands to "think about content and the creator economy and how your brand is perceived," adding, "I think that happens still largely outside of the world of AI."
The piece cites Attentive research finding that two-thirds of shoppers have used AI to make a purchase within the last three months, a share that rises to 80% among Gen Z shoppers. It also features Vlerick Business School professor Joeri Van den Bergh, who identified four main subsets within Gen Alpha and urged brands to be cautious with digital tools aimed at children; Gen Z Planet founder Hana Ben-Shabat on cocreation and personalization; and JLL's Emily Albright Miller on why physical stores may offer young shoppers relief from online choice overload.
Britton speaks on Gen Alpha, AI, and the future of consumer behavior as an AI keynote speaker.
