Press Release
Holiday shopper confidence in AI soars, but most retailers deploying AI aren’t providing the transparency consumers demand, Talkdesk survey reveals
While shoppers will embrace AI more than ever this holiday season, expectations are high for responsible, transparent, and value-driven experiences
- 75% of consumers surveyed plan to use AI to find deals, and 67% for gift ideas, signaling AI is now a holiday shopping essential.
- 84% of consumers surveyed say it’s important to know when AI is being used, but only 51% of surveyed retailers using AI disclose it.
- Among retailers surveyed who use AI, 80% expect higher holiday sales, and 79% anticipate stronger customer loyalty.
PALO ALTO, Calif. — October 30, 2025 — AI is firmly on Santa’s “Nice List” this year, according to the third annual 2025 AI Holiday Shopping Report conducted by Talkdesk®, Inc. Consumers are more confident and optimistic about using AI this holiday shopping season than ever before based on data that 75% plan to use AI to find deals (up from 66% in 2024), and 67% will use it for gift ideas (up from 54% last year).
But also on shoppers’ wish lists this year is wanting to know when AI is being used (84%) — something that only 51% of retailers surveyed that currently use AI disclose — as well as stricter AI oversight from retailers and regulators (60%). As consumers and retailers alike can continue to benefit from AI, the survey findings highlight the imperative for retailers to balance technology innovation with ethics to maintain customer trust.
Other key findings from the Talkdesk 2025 AI Holiday Shopping Report include:
With AI, consumers believe all will be calm, all will be bright. Compared to last year, 69% of consumers believe that using AI for support in their holiday shopping will make them happier (+7 points), 70% will be less anxious during the holiday shopping period (+10 points), 78% will be better at saving money (+4 points), and 73% will be less likely to return products (+4 points).
Retailers using AI are scaling quickly. Retailers already using AI are widening the competitive gap with slower adopters. Compared to 2024, 85% use AI for predictive analytics (+24 points), 83% use virtual agents to support the customer shopping experience (+24 points), 79% use virtual agents to support the customer service experience (+20 points), and 63% use AI for personalized pricing and promotions (+12 points). Their confidence in AI’s return on investment (ROI) has grown equally fast from last year: 80% expect higher holiday sales because of AI (+25 points), 80% say AI will give them a competitive edge (+24 points), and 79% anticipate stronger customer loyalty (+32 points). However, a gap remains in customer communications regarding AI use: while 92% of retailers claim to use AI responsibly, only 51% disclose when the technology powers the shopping experience. This disconnect could severely impact consumer trust.
Retailers without AI risk falling behind. Retailers not using AI are becoming more complacent and could be in for a shock when they get coal in their stockings. 73% say they’re not worried about losing sales to AI-powered competitors (up from 41% in 2024), and 71% aren’t concerned about offering a lower-quality experience (vs. 39% last year). When asked what might change their minds about deploying AI, non-adopters pointed to improved trust in AI fairness and transparency (53%) and clearer regulations (41%) as the top motivators.
“It’s clear consumers want AI in their holiday shopping experiences. What’s also interesting is that many retailers using AI are steaming ahead without enough consideration for transparency, but those not adopting AI due to transparency fears risk losing competitive edge,” said Michael Klein, head of retail, travel & hospitality product marketing at Talkdesk. “Responsible AI use is not a paradox; AI should be shaping customer experience with best practices like guardrails, human oversight, and usage disclosures in place. The retailers that thrive this holiday season will use AI strategically and responsibly, blending innovation with integrity to build lasting customer loyalty and trust.”
Methodology: Talkdesk commissioned Pollfish to design and execute a survey of 1,000 U.S. consumers, 150 U.S. retailers currently using AI, and 150 U.S. retailers currently not using AI in September 2025. The results, analysis, and conclusions were provided by SHIFT Communications.
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