Australians embrace AI chatbots for holiday shopping

Australians are increasingly adopting AI chatbots as a part of their holiday shopping experience, according to new research.

Technological advancements such as AI chatbots are transforming the retail landscape. Shoppers today can select gifts, try on clothes virtually, find deals through automated searches, and use AI-generated buying guides from retailers like Amazon. These guides help by highlighting specific product features, use cases, and addressing common inquiries.

A recent study by Zendesk indicates that nearly one-third of Australian consumers are now more inclined to use chatbots for holiday shopping compared to the previous year. This trend isn't limited to younger demographics; individuals aged 55 and over are also showing an openness to utilising AI chatbots for finding the best deals on gifts.

Richard Valente, Executive VP of Business Solutions at TP, a global player in customer support, noted that consumers are expressing concerns about the rapidly evolving shopping environment, even as technology adoption increases in the sector. "As AI and automation become more common in the retail sector, there is a growing concern that customers will lose that personal touch and empathy we have been accustomed to at the checkout," states Mr Valente.

He counters this notion by suggesting that technological advancements can foster more engagement and interaction opportunities, thereby enhancing the retail experience. "It's actually quite the opposite, these advancements can lead to more engagement and interaction opportunities for retailers to provide a better and more personable experience," he says.

The sentiment is echoed by consumer behaviour, with TP data revealing that one in two consumers place high importance on good quality and price, while choosing brands that offer robust customer care. Mr Valente emphasizes that the objective should be to use these technological advances to augment human assistance, rather than replace it.

"With repetitive tasks automated, employees can be more present on the shop floor or online, adding value by being available to customers," explains Mr Valente. He adds that employees can engage earlier in the shopping journey, offering personalised suggestions and ensuring a positive experience.

AI systems are enhancing the efficiency of checkouts as well. "AI systems are also contributing to more efficient checkouts," notes Mr Valente. He points out that innovations such as video centralised assistants and chatbots are reshaping the shopping experience by offering product recommendations, purchase suggestions, and rapid product availability checks.

The advancements in AI technology provide significant shopper benefits while also reducing costs for retailers. "The rapid advances in this space provide an effective outcome for the shopper, while also ensuring a lower cost to the retailer," he concludes.

In navigating this new automated world, retailers are encouraged to adopt a series of strategies to maintain high levels of customer service. These include incorporating customer relationship management systems, encouraging customer feedback, using omnichannel tracking, implementing loyalty programs, building a competent customer support team, offering self-service options, and utilizing automated communications to handle inquiries efficiently.