32% of holiday shoppers lost trust in a brand over an AI chatbot
Nearly a quarter of consumers received what they considered a biased product recommendation from an AI chatbot when they were recently shopping for the holidays, and now 27 per cent said they would not recommend the brand, according to data released by TalkDesk.
The Palo Alto., Calif.-based provider of customer experience (CX) automation software gathered responses from more than 1,000 U.S. consumers to produce its Post-2025 Holiday Shopping Survey.
TalkDesk found the vast majority of consumers (89 per cent) used AI in some form to find gifts during the holiday season. More than three-quarters said they are more likely to lean on the technology throughout 2026 for their shopping needs, though some clear challenges remain.
For example, 40 per cent said they would feel misled if a brand did not disclose they were dealing with an AI agent, and 31 per cent said they hadn’t been sure when they connected with a retailer for help.
On the plus side, 43 per cent of shoppers said AI had helped them save between one and three hours, and 74 per cent said they spent less time shopping because AI made the experience more efficient. More than half (57 per cent) said AI had improved their overall holiday shopping experience.
The report’s authors noted that success with AI has a direct correlation to loyalty. When the technology offers biased suggestions, for instance, 19 per cent said they would never shop with the brand again.
“AI proved its value this holiday season; now it must prove its integrity. It saved time, reduced friction, and helped shoppers feel more supported during one of the most stressful shopping periods of the year,” the report said. “Shoppers felt the improvements and adjusted their expectations accordingly. As AI impacts more parts of the shopping journey, tolerance for mistakes becomes narrower.”
360 Magazine Insight
TalkDesk took a balanced view of the data it collected, noting that while 45 per cent felt “neutral” about AI transparency, they aren’t going to appreciate retailers pulling the wool over their eyes. By now it should be obvious that any AI-powered customer interaction should begin by:
- Acknowledging the use of automation
- Explaining how it makes use of a customer’s data
- Giving them an opportunity to opt out and speak to a human
As for biased recommendations, TalkDesk suggested this was likely due to assessing customers based on “stereotypes.” Brands might prefer the word “segment,” but it shows that there is a limit to how well the technology cross-references purchase histories with demographic details and other information — and the extent to which brands might be gaming the system to highlight its featured products.
It’s worth noting that getting product ideas was second only to looking for cost saving deals as a top AI shopping use case. That means retailers have educated the market enough that shoppers expect AI to point them in the right direction. As this ungated report shows, leading them astray is the best way to lose a customer for good.
