Based on a Q&A with Ed Durbin, VP & GM of Global Industry Strategy for Retail and Consumer Goods at Talkdesk, and Michael Klein, Head of Retail Product Marketing at Talkdesk.
AI Has Reset the Retail Game
As we head deeper into 2025, one truth has crystallized: AI is no longer experimental—it’s expected.
The 2024 holiday season acted as a high-pressure test for AI in retail, and consumers passed with flying colors. According to a Post-Holiday Shopping Survey from Talkdesk, not only did shoppers embrace AI—they’re now demanding more of it.
To explore the impact—and what it means moving forward—we sat down with Ed Durbin and Michael Klein of Talkdesk. Their insight: AI didn’t just enhance holiday shopping—it reset consumer expectations for good.
Retailers are now facing a choice: adapt AI into the core of their customer strategy or fall behind as shopper demands continue to escalate.
Consumers Have Made Up Their Minds on AI
Talkdesk’s survey revealed that 88% of consumers used AI during the 2024 holiday shopping season. That figure alone marks a turning point—AI isn’t niche. It’s now central to how people shop.
What Shoppers Did with AI:
- 72% compared prices and hunted deals using AI tools.
- Many set dynamic pricing alerts for their favorite products.
- Personalized product suggestions helped reduce decision fatigue and boosted confidence.
More Than Just Convenience:
- 56% felt happier with AI support.
- 61% experienced reduced stress and anxiety.
- Among men, satisfaction rose even higher, with 64% feeling happier and 42% spending more because AI made the experience enjoyable.
Key Insight: AI is now both a practical tool and an emotional enhancer. Brands can no longer separate functionality from customer sentiment. AI is shaping both.
Retailers: Some Are Winning with AI—Others Are Struggling
Retailers Embracing AI Saw:
- AI-powered chatbots (AI Agents) delivering 24/7 customer service.
- Behind-the-scenes AI driving personalization and sentiment analysis.
- Improved revenue and higher CSAT scores.
But not all brands are on board.
Adoption Challenges:
- 55% cite privacy and data security concerns.
- 52% say AI is outside their comfort zone.
Key Insight: The AI divide is widening—brands scaling AI see real ROI. Those holding back risk losing customer relevance.
Trust Is the New Battleground
Even with widespread adoption, consumer trust in AI remains fragile.
Top Shopper Concerns:
- Transparency: 75% want control and consent over data use.
- Security: 64% feel they don’t control how brands use their data.
- Accuracy & Fairness: Inaccurate or biased recommendations? Deal-breaker.
- Ethics & Compliance: Consumers are watching. Regulations are coming.
Key Insight: Trust is now currency. Ethical, transparent AI use builds long-term loyalty and differentiation in a crowded marketplace.
Retailer Action Plan: Turning Insight Into Strategy
The holiday season delivered the lessons. Here’s how retailers can apply them now:
1. Educate Internally
AI can’t be siloed in IT. Build cross-team AI literacy to inform smarter strategies and execution.
2. Personalize with Consent
Use AI to enhance relevance, but ensure clear value exchange and transparent data usage.
3. Lead with Transparency
Communicate how data is used and give consumers real choices. Turn compliance into customer trust.
4. Deploy AI Strategically
Focus AI investment on high-impact areas—customer service, marketing, and operations—where ROI is measurable.
Shoppers Now Expect More—Are You Ready?
After AI-assisted holiday shopping, 58% of consumers expect a higher retail standard in 2025. Among men, that jumps to 64%.
“AI is no longer optional for retailers. It’s essential,” says Ed Durbin. “The question now is whether brands are willing to use it strategically and responsibly to create better outcomes—for their customers and for their bottom line.”
Conclusion: AI Isn’t Seasonal—It’s Strategic
The biggest takeaway? AI is not a holiday helper—it’s a year-round growth engine.
Smart retailers will embed AI into their core strategies, not just to sell—but to serve, sustain, and scale.
Because from here on out, AI isn’t just part of the shopping experience—it is the experience.
Photo by Craig Lovelidge on Unsplash
