Talkdesk Leaders Reveal What Actually Works Beyond the Hype
The intersection of artificial intelligence and retail customer experience is evolving rapidly, as revealed in our enlightening conversation with Ed Durbin, VP and GM of Industry Strategy for Global Retail, and Michael Klein, Director of Retail Product Marketing at Talkd
esk. These industry veterans bring decades of retail experience to the contact center software space, providing unique insights into how AI is transforming retail operations worldwide. 
One striking revelation from their experience at NRF (National Retail Federation’s annual conference) was the disconnect between AI enthusiasm and practical implementation. While AI dominated conversations, many retailers admitted struggling with execution. As Ed recounted from the CIO luncheon he attended, despite everyone wanting to discuss AI, very few had successfully implemented it. This reality check was further emphasized when a retail vice president confessed to Ed that despite investing millions in AI technology, they were “still trying to get it to work” – a statement that underscores the complexity of AI adoption in retail environments.
Talkdesk’s approach stands out in this landscape because they aren’t simply applying generic AI solutions to retail problems. Their business model includes purpose-built retail solutions with dedicated product teams working exclusively on retail-specific challenges. This industry-specific approach differs significantly from competitors who often repackage existing technology with industry marketing. Michael emphasized that Talkdesk recognizes the unique data integration challenges retailers face with their “spider web of technologies” including CRM, loyalty, transaction, and point-of-sale systems – all requiring specialized solutions rather than one-size-fits-all approaches.
The conversation highlighted an important evolution in how we think about AI in retail. Michael Klein noted that we’re transitioning from the hype phase to a more practical “what can this actually do for me” phase. He usefully categorized AI into three waves: predictive/interpretive AI (which has been around for a decade), generative AI (the focus of 2024), and agentic AI (emerging as the buzzword for 2025). Importantly, according to IDC data he cited, 70% of AI used in the next two years will still be traditional predictive and interpretive AI – suggesting retailers shouldn’t abandon proven AI approaches in pursuit of the newest trend.
Consumer expectations provide powerful motivation for retailers to get their AI strategy right. Talkdesk’s research revealed that seven out of ten consumers expect to use AI for shopping in 2025, and six out of ten reported that their expectations for customer experience have increased based on their AI experiences during recent holidays. Consumers are already widely using AI to compare prices and find the best deals, with experience, price, and convenience continuing to drive purchasing decisions. As these consumer expectations rise, retailers face mounting pressure to implement effective AI solutions.
The talent question remains a significant challenge for retail AI adoption. When asked why they haven’t invested in AI, retailers consistently cited budget limitations and resource constraints – particularly the lack of specialized talent. The conversation touched on the evolution of AI roles, from data scientists to “prompt engineers,” with Michael suggesting that as AI becomes more intelligent and capable of understanding natural language, the specific technical requirements may shift toward business professionals who understand desired outcomes rather than specialized technicians.
This conversation revealed that successful AI implementation in retail isn’t just about having the shiniest new technology – it’s about creating a solid foundation that can adapt to evolving AI capabilities while addressing specific retail challenges. As Ed aptly summarized from his years of retail technology conversations: “Don’t talk about the shiny new toy, make sure I have a foundation to manage any shiny new toy.” This pragmatic approach, combined with industry-specific expertise, positions retailers to deliver meaningful customer experience improvements that directly impact the bottom line.
