Gen Z and Gen Alpha shoppers are price-sensitive, digitally savvy and drawn to physical stores. They were exposed to AI early and now use it for discovery and purchasing. Retailers are adopting AI gift finders to meet this demand. Two-thirds of shoppers used AI for a purchase in the last three months. Gen Z and Gen Alpha expect highly personalized experiences. They also value in-store shopping for social and exploratory reasons. Physical stores let them break free from algorithmic recommendations. Retailers should balance AI tools with emotional, non-transactional connections.