In the past, the big guy in the red suit was the chief present-deliverer (with help from some elves and the humans at FedEx and UPS). This year, FedEx’s 2025 Holiday Season E-Commerce Trends report shows that 97% of large US-based retailers will use AI to enhance the shopping experience for customers and retailers this holiday season. Where’s the Elf Union when you need it?

Today, we’re talking about how AI is impacting holiday shoppers and shippers, where FedEx is using AI in place of human labor, and how you can cut costs with FedEx contract negotiation.

How is AI Being Used This Holiday Season?

According to the FedEx report, 40% of shoppers plan to engage AI to assist in finding the best deals, budgeting, product comparison, and gift inspiration. As expected, Millennial and Gen Z shoppers are far more likely to use AI than Baby Boomers.

Businesses are split on AI use. While 97% of large businesses will use AI to provide customer service, manage inventory, recommend products, and price products, 75% of small and 50% of medium businesses will not use AI at all this holiday season.

What AI Factors Influence FedEx Pricing Strategy?

FedEx’s general rates are on the rise in 2026, and so are its additional fees and surcharges. So where does AI fit in? FedEx has been increasing its reliance on artificial intelligence in various forms.

On its Innovation & technology policy perspectives page, FedEx says it’s “actively testing autonomous vehicles and we support more testing and research to advance transportation technologies.” An autonomous FedEx isn’t happening today, but we’re sure to see more driverless vehicles and fewer drivers in the future.

A few years ago, FedEx introduced AI-powered sorting robots. In a recently updated post, it shared that a facility in Singapore has a robot that can sort 1,000 parcels per hour and cover up to 100 destinations. How does the robot compare to its human counterparts? On one Reddit post sharing loading stories, a commenter said their daily load is around 1,000 parcels. Robots are completing the daily workload of a single employee in an hour— and without pay or benefits.

Parcel Rate Negotiation: Fair Pricing in the AI Era

Robots are doing the work of humans, reducing the amount FedEx will need to pay in wages, benefits, and legal support. If FedEx is reducing its costs, why is it increasing its fees?

When you hire ShipRx for parcel contract negotiation services, you benefit from the team’s decades of experience in the parcel industry. From its analog past to an AI-driven future, ShipRx stays up to date on the latest trends in shipping and industry-specific parcel pricing. We’ll review your contract and advise you if you’re overpaying and guide you in negotiating reduced fees.

If the robots take human jobs, you shouldn’t pay a premium. Sign up for a free ShipRx savings analysis today and benefit from the human touch that gets real savings for your company.