Thanks for the comments guys. I crashed after I finished the jam, so I didn't have a chance to respond.
Yes, in its current state, as a prototype, it doesn't have a lot of AI or items to use, but that's mainly by virtue of time. At the moment, the main reason you would use the gift mechanic is to block an AI from using a boost. The AI originally threw items constantly, but I toned that down so people would have the opportunity to actually gift and replace items.
If I had the time, netplay, a larger item pool, and more AI code would have greatly improved this.