Australians embrace AI chatbots for holiday shopping rush

Australians are increasingly turning to AI-powered chatbots for holiday shopping, according to a survey conducted by Zendesk.

The survey gathered insights from over 1,000 consumers in Australia, indicating a rise in the use of chatbots among shoppers.

Nearly one-third of the respondents reported being more open to using chatbots this year compared to the previous holiday season. This trend is particularly noticeable among young adults aged 18-24, with half of them likely to use AI chatbots for their holiday shopping. Even older shoppers, aged 55 and above, expressed interest in chatbots for finding the best deals.

Despite the increasing reliance on AI, many consumers voiced concerns about the human touch in their shopping experiences. 63% of respondents agreed that chatbots lack empathy, showing a preference for more human-like interactions.

The survey suggests that retailers have an opportunity to enhance the shopping experience by integrating smarter and more human-like digital assistants, while maintaining human support when necessary.

Kellie Hackney, Country Leader for Australia and New Zealand at Zendesk, commented, "The holiday shopping season can be stressful for many as people search for the best deals and rush to complete their shopping. Consumers prefer brands that offer experiences that make shopping simpler, and help them get the best value. Many are embracing digital assistants like chatbots, seeking interactions that feel more human. They want to compare products, receive alternative suggestions, and get personalised recommendations whenever they need them. This approach provides a quick and easy shopping experience, ensuring they find great deals this holiday season."

However, the survey revealed that the current chatbot experiences are not meeting consumer expectations for personalisation. Only 34% of respondents believed that chatbots could understand their unique shopping needs, and just 37% felt that chatbots could offer personalised recommendations. Furthermore, 38% viewed digital assistants as helpful for searching product information or finding the best products.

Retailers that prioritise personalisation could see stronger customer loyalty, with 49% of shoppers stating they would likely return to a brand if they received an excellent personalised experience. This sentiment is even higher among younger consumers, with 66% of those aged 18-24 years saying tailored experiences would make them more likely to shop with a retailer again.

Concerns over data security and privacy remain prevalent among consumers. 68% of respondents expressed worry about how their data is used, and only 26% were comfortable with businesses storing their data for more personalised chatbot assistance.

The insights suggest that retailers need to be transparent about data usage and ensure AI solutions prioritize security to build trust with consumers.

Hackney concluded, "As retailers compete for consumer spending these holidays, Australians have been clear on their expectation for AI-enabled experiences that make their shopping experiences easier and quicker."

"Those retailers that can delight their customers at every step of the journey through personalised experiences will win their customer's share of wallet and reap the rewards of stronger loyalty."