Retailers may be racing to embrace AI-powered shopping and customer service, but new research suggests human interaction remains crucial to winning shopper trust and loyalty.

Eight in 10 consumers are willing to use AI-powered customer service, yet two-thirds still prefer speaking to a human, according to research from customer experience platform Five9.

Five9 found that 92 per cent of businesses have already implemented or piloted AI within customer service, however, the research highlighted a growing disconnect between retailers’ adoption of AI and what shoppers expect from the technology.

Some 71 per cent of consumers said it was very or extremely important to know when they were interacting with an AI agent, while customers also expect to be able to move easily from automated support to a member of staff when their issue becomes more complicated.

The handover remains a particular sticking point. Despite almost all businesses surveyed claiming they preserve customer context when transferring an interaction from AI to a human agent, 83 per cent of shoppers said they still have to repeat themselves at least some of the time.

Five9 chief executive Amit Mathradas said successful AI adoption would require businesses to make customer experiences “more relevant, more trusted and more human”, rather than simply automating interactions at scale.

The findings underline the balancing act facing retailers as conversational commerce gathers pace.

AI is already becoming an increasingly important route to retailers’ websites. Recent Adobe Analytics data found shoppers referred by AI services generated 41 per cent more revenue per visit than those arriving through traditional channels, while 41 per cent of US consumers said they had used generative AI for online shopping in June.

But while AI can help retailers get products in front of shoppers and remove friction from routine queries, the research suggests technology alone may not be enough to create long-term loyalty.

The research suggests that opportunity could therefore lie in using AI to handle straightforward requests and improve product discovery, while ensuring staff remain readily available when shoppers need reassurance, expertise or help resolving a more complex problem.

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