For many shoppers, holiday customer service in 2025 no longer meant waiting on hold. Instead, it meant interacting with bots, automated systems, and virtual assistants—often without realizing it at first.
According to a new survey from Liveops, 78% of consumers say they interacted with AI or automation during holiday shopping, ranging from delivery updates and return workflows to chat-based support. The data underscores how quickly AI has moved from an experimental tool to the front line of retail customer experience.
But widespread adoption does not yet equal full trust.
What Changed This Holiday Season
The shift toward automation was not subtle. Nearly three-quarters of respondents said noticeably more of their customer service interactions were handled by AI or automated systems compared with the previous holiday season.
The biggest increases were reported in:
Online chat and website help tools
Customer service phone systems
Automated email and text responses
In practical terms, retailers leaned heavily on AI to absorb seasonal volume spikes—handling repetitive questions, routing issues, and providing instant status updates at a scale human teams alone cannot match.
Speed Wins, But Empathy Still Matters
From a performance standpoint, consumers largely approved of the results. Eighty-five percent of holiday shoppers said AI-driven customer service delivered clear improvements in speed. About one-third cited 24/7 availability as a key benefit, while 20% said AI resolved issues faster than waiting for a live agent.
As Terra Higginson, principal research director at Info-Tech Research Group, noted, AI systems are increasingly capable of resolving issues independently—and of equipping agents with better context when escalation is required.
However, when it comes to perceived service quality, humans still dominate. Fifty-four percent of respondents said human agents provided better support, compared with just 11% who favored AI.
The message is nuanced: speed builds satisfaction, but empathy builds confidence.
The Real Value of AI: Better Handoffs, Not Fewer Humans
Importantly, AI’s strongest contribution may not be replacing agents—but improving escalation. When designed well, automated systems pass context, history, and intent to human agents, reducing repetition and friction.
This hybrid model is becoming the industry standard: AI handles volume and triage, while humans step in for judgment calls, emotional moments, and complex problem-solving. Retailers that frame AI as a support layer—not a substitute—are seeing better outcomes.
Where Brands Are Falling Behind: Transparency
One area where consumers are clearly dissatisfied is disclosure. Fewer than one-quarter of respondents said companies always disclose when AI is being used. Yet 69% believe brands should always make that clear.
The gap is becoming a trust issue. As Higginson emphasized, best practice is simple, plain-language disclosure—terms like “AI-based chat,” “AI agent,” or “voice AI agent”—so customers understand who or what they are interacting with.
Transparency, in this context, is less about compliance and more about expectation management.
Analysis: AI Is Now Expected — But Trust Is Earned
This holiday season revealed three critical truths about AI in customer service:
•AI is no longer optional. Consumers now expect automation as part of basic service delivery.
•Human agents remain the gold standard. Especially when issues are emotional, complex, or high-stakes.
•Disclosure matters as much as performance. Speed without honesty risks eroding long-term trust.
Retailers that treat AI as invisible infrastructure may gain efficiency in the short term—but those that explain its role clearly are more likely to build durable customer relationships.
What Comes Next
As AI systems become more conversational and autonomous, the pressure to balance efficiency with transparency will intensify. The winners will not be the brands with the most automation—but those that deploy it responsibly, visibly, and in service of a better human experience.
The holiday season has made one thing clear: AI may answer first, but humans still close the conversation.
Source: Based on reporting from RetailDive