AI is “rewiring” the brains of today’s youth, at the same time that they’re craving physical experiences. Can retailers strike the right balance?

The holidays bring together retail executives and parents alike with one driving question: What do the kids want this year?

That can be as simple as which toys are hot or as complex as what the youngest generations are looking for out of their shopping experience. With the oldest Gen Alphas learning to drive (researchers pin the start of that generation at around 2010), we’re nearing the point where retailer interest shifts off of Gen Z and onto future shoppers.

For the time being, both are firmly in focus. The distinction between generations is not a do-not-cross line, either, and members of each group share many characteristics.

The youngest Gen Zs and oldest Gen Alphas, both in their teens, are price-sensitive, digitally savvy and enamored by physical retail experiences. They wield significant influence on household purchases, despite having little money of their own, and perhaps most distinctly — they were exposed to AI early.

“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,” said 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.”

“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,” Britton said.

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