Dive Brief:

• Chatbots can enhance e-commerce experiences, but they require careful application. One in 5 shoppers said they would be most likely to abandon a purchase following interactions with AI-powered chatbots, according to a survey of over 1,000 shoppers by Intellias.
• But consumers showed some interest in AI shopping assistance. More than one-quarter of respondents would seek AI-powered automated pricing and real-time promotions, while nearly a quarter would like real-time personalized offers and rewards. Nearly a quarter would like AI to assist with product discovery.
• AI can’t replicate the human touch. Two-thirds of respondents noted that they don’t mind retailers using AI to automate repetitive tasks, but they don’t want it to replace human interaction. Another 71% said retail experiences will always need a blend of AI and human interactions.

Dive Insight:

Companies looking to integrate customer-facing AI into digital experiences need to make sure they’re delivering value, not creating friction, according to Dave Howard, global marketing director of retail at Intellias. 

Integration should be seamless so that it’s not apparent where automation begins or ends, Howard said. However, transparency remains paramount. Shoppers want to know if a company is using AI — they just don’t want it to take them out of an already comfortable journey.

“When we’re talking around seamless AI applications, it’s not about hiding its use, but rather ensuring its application is so integrated that it effortlessly adds value and doesn’t create friction or a clunky user experience for the shopper,” Howard said in an email to sister publication CX Dive.

The survey found that nearly half of consumers don’t mind using AI if the experience isn’t clunky. 

With this in mind, Howard suggested using generative AI to offer relevant product information or hyper-personalized search recommendations. AI can also enhance loyalty programs and post-purchase experiences without interrupting the flow of a shopping journey. 

The right time and place to introduce AI into the customer journey will be different for every company, according to Howard. Getting it right requires leaders to think about where AI will be a natural fit for their operations and where it will properly enhance purchasing experiences.