AI in Retail Support: A Consumer Confidence Story

Just when retailers thought they knew what consumers wanted in their interactions with customer service, artificial intelligence (AI) has moved the goalposts. A survey by Vonage found that 75 percent of consumers are comfortable with AI-powered customer support in retail — among the highest acceptance rates across industries, second only to gaming (80 percent). This level of acceptance signals a meaningful shift in consumer attitudes toward AI technology in their shopping experiences.

Gone are the days of simple chatbots. Today’s consumers have embraced AI and its ability to personalize and streamline their shopping experiences. When 70 percent of consumers believe AI has improved self-service support overall and 60 percent agree that AI has made self-service more efficient, we have evidence that the technology is delivering on its promise to enhance the customer experience.

Personalization, long considered the holy grail of retail customer service, is getting a boost from AI that consumers are welcoming. Half (51 percent) of consumers are comfortable with AI personalizing responses based on previous text or chat inputs. This openness to AI-driven personalization allows retailers to create more targeted and relevant customer interactions than they’ve ever had before. AI-driven personalization enables retailers to create highly targeted customer interactions, leading to better customer engagement outcomes. And according to Vonage's most recent report, more than half (52 percent) of customers become more loyal after a great experience, and 35 percent make additional purchases.

The human touch, however, remains vital. While 87 percent of consumers are comfortable using AI-enabled website chat support, 85 percent still consider it very important to have easy access to human agents. However, GCER findings reiterated common customer frustrations with agents, such as long wait times (65 percent), repeated contact with customer service (65 percent), and multiple transfers among agents (63 percent). Retailers should focus on creating a balanced approach, leveraging AI for quick, routine interactions and ensuring human support is available for more complex issues. Empowering human agents with AI-powered data on the customer issue and any previous interactions enhances their understanding of customer needs and enables rapid resolution. This hybrid approach has already had a positive impact, with half of consumers reporting that AI has made live agent support faster, and 34 percent believing it has improved the overall quality of live agent interactions.

Channel preference is another important factor for retailers. The survey revealed that consumers are most comfortable with AI support through digital channels: 87 percent for website chat, 72 percent for mobile apps, and 67 percent for SMS/text support. Email and messaging apps WhatsApp and Facebook Messenger also showed strong acceptance rates at 60 percent and 56 percent, respectively. This channel hierarchy provides retailers with a road map for implementing AI: a phased approach that prioritizes digital, text-based interactions before moving to more advanced applications.

While Acceptance Has Grown, Transparency is Key

Transparency in AI deployment remains top of mind for consumers as well. With 91 percent of consumers believing companies should disclose when AI is used for customer service interactions, retailers must be upfront about their AI implementations. The good news, however, is that more than half (54 percent) of consumers report that a brand’s use of AI doesn’t affect their trust at all, with an additional 12 percent indicating that AI actually has a positive impact on their trust. This suggests that transparent AI implementation could potentially enhance brand reputation rather than damage it.

The findings highlight a clear path forward for retailers: embrace AI for its efficiency and personalization capabilities, but don’t lose sight of the human element. As retailers plan for 2025, these findings provide valuable insights on how and where to implement AI. The high comfort level with retail AI (75 percent) compared to more sensitive sectors like banking (25 percent) and healthcare (18 percent) indicates that retail is uniquely positioned to lead the way in AI customer service innovation. The key lies in strategic implementation. This starts with widely accepted channels, maintaining transparency, ensuring easy access to human agents, and focusing on efficiency and personalization rather than trying to replicate human interaction altogether.

The message for retail leaders is clear: AI in customer service is no longer a future consideration but a reality that customers embrace. The opportunity lies in the thoughtful integration that enhances rather than replaces the human element of customer service.

Reggie Scales is the head of global applications at Vonage, a global leader in cloud communications helping businesses accelerate their digital transformation and a part of Ericsson.