Shoppers are used to opening their wallets during Black Friday, Amazon Prime Day, and the annual or semi-annual sales they’ve come to know. However, amid looming tariffs and ongoing economic uncertainty, shoppers are making changes to their usual patterns. In fact, 83 percent expect to adjust their shopping habits due to tariffs, according to a survey from Numerator.
As shoppers think critically about where to spend, they’re paying attention to the retailers that can offer the most personalized customer experiences (CX), including those improved by artificial intelligence. In fact, a January 2025 Talkdesk survey found that last holiday season, most (88 percent) shoppers used AI in some form and over half (56 percent) said the additional support made them happier. This encouraged 69 percent to say they’re more likely to use AI-powered shopping this year.
With AI’s influence on retail CX expanding (especially during major shopping events), let’s explore how this new technological wave is impacting the industry. Specifically, the AI features and tools retailers are likely to implement to better meet shoppers’ evolving needs, and strategies for staying updated on shifting technology trends and capabilities.
‘Welcome! How can AI help you?’
Recently, we’ve seen shoppers experiment with AI, like using Rufus to navigate Amazon.com’s latest offerings or ChatGPT to budget appropriately. Now we’re seeing AI play a larger role in CX that isn’t slowing down.
Eighty-six percent of consumers admit that personalization can sway their decision on what to buy, which is partly why they’re craving more individualized experiences. That’s where AI enters the picture, as it brings data about the entire customer journey (e.g., search history or past orders) together, instantly providing a holistic view of the shopper and key context about where they are in their purchasing journey. AI’s ability to deliver this comprehensive, bird’s-eye view of the shopper’s path allows retailers to offer a level of personalization more quickly and in-depth than ever before.
Yet, AI can take personalization even further than where it stands currently. Let’s look at virtual AI agents. These agents can perform the same tasks as in-store associates, helping shoppers find the right products and make suggestions that take their unique preferences and feedback into account. These agents also keep the retailer’s inventory in mind, making sure the products it tracks down are in-stock and ready to be shipped or picked up in-store.
Additionally, in today’s global economy, shoppers are browsing and buying products from all over the world. In fact, Capital One found that cross-border e-commerce makes up over a third of all global online sales. This year, the cross-border e-commerce consumer market is worth approximately $2.5 trillion.
Despite the growth in cross-border sales, language barriers still arise when international shoppers reach out with inquiries, purchases and returns. AI is breaking down these communication obstacles by offering real-time translation, allowing retailers to easily connect and communicate with all of their customers across the globe.
Planning Ahead: Where Shoppers Will Want AI Next
AI is becoming ingrained into the retail experience, which means that retailers must consider the types of AI capabilities that make the most sense for their specific customer base.
For example, two in three shoppers say they would refuse to let AI make purchases on their behalf, highlighting how some consumers are still uncomfortable using AI tools themselves. In this case, AI tools may be most helpful for employees to use behind the scenes, like to help track down inventory or optimize operations so the shopping experience flows more seamlessly for the customer.
However, if customers have expressed their appreciation for consistent personalized product recommendations, they may benefit from interacting directly with AI capabilities or agents. A simple way to do this is by having shoppers use AI-powered tools to enhance their shopping experience on devices they’re already familiar with, like their mobile phones.
For example, shoppers can take a photo of any item, then use AI to conduct a visual search to find all the locations that item is being sold as well as alternative options to consider. Take the image search feature on The Home Depot’s mobile app, for instance. It allows shoppers to take a picture of the leaky faucet or random screws in their home and find where those items are sold in-store, without having to worry about the specific type or model they need to replace.
No matter where shoppers stand, their AI expectations will continue to grow. To meet these demands, retailers must have long-term plans for using the technology to improve CX. To develop these plans, they first need to clearly understand the CX pain points their shoppers are experiencing and then look for ways AI can fill these gaps moving forward.
This can happen in many ways, such as:
- Problem: It takes forever to connect with an associate.
Solution: Connect shoppers with AI agents or chatbots for faster service. Retail associates and CX representatives juggle several responsibilities. To handle shoppers reaching out with routine questions about return processes, hours of operation or product recommendations, they can be directed to an AI agent or chatbot which can provide thoughtful, informative answers. This frees up time for humans to focus on more complex and abstract tasks. - Problem: Shoppers are sick and tired of explaining themselves to customer service representatives.
Solution: Ensure AI systems remember customers’ shopping histories. Within a single call, shoppers are often transferred to several representatives, having to repeat their concerns and frustrations each time a new person gets on the line. AI tools and services exist that can keep an ongoing record of shoppers’ transactions and interactions with a particular retailer. This helps the customer avoid repeating all of the issues they’ve experienced in the past, saving them time and irritation. - Problem: Shoppers crave warmth and connection.
Solution: While the human touch is important, AI chatbots and agents don’t have to feel heartless. Retailers must ensure shoppers are always met with a level of kindness and personalization that makes them feel well cared for, whether they interacted with a human store associate or an AI agent to have their needs met.
As shoppers grow more reliant on AI’s research, CX and communication capabilities, it’s crucial that retailers evaluate their AI usage and create plans for how to strategically leverage it in the future.
Since not all retailers stand in the same place with AI usage, they should take deliberate steps to implement the technology as they see best fit. After all, retailers should be implementing AI to solve the real-life challenges shoppers face when making purchases — not just to hop on the bandwagon.
As AI keeps weaving itself into the fabric of the retail industry, it’s crucial for retailers to stay ahead of inevitable shopper demands. By developing long-term strategies for how AI can be leveraged in CX, retailers ensure they’re well-equipped to meet their customers’ current needs, while simultaneously anticipating tomorrow’s expectations.
Michael Klein is the head of retail, travel and hospitality product marketing for Talkdesk, a leader in contact center software.
