A recent research conducted by Salesforce’s State of the AI Connected Customer, has revealed a concerning trend. According to the research, consumer trust in companies has hit an eight-year low. As Artificial Intelligence (AI) continues to transform customer interactions, 63 per cent of consumers believe advances in AI have made trust more crucial than ever. This holiday season, brands will have an opportunity to rebuild trust by leveraging AI-powered agents that deliver seamless, transparent and personalised customer experiences.
AI agents—intelligent software capable of addressing customer inquiries autonomously—are set to influence over $200 billion in global online sales during the holidays. These agents can alleviate common pain points, such as clunky purchase experiences and complex return processes, while driving efficiency and customer satisfaction.
The research further highlights generational differences in openness to AI-powered customer support. In India, Millennials (57 per cent) and Gen X (58 per cent) show a greater willingness to use AI agents compared to Gen Z (51 per cent) and Baby Boomers (42 per cent). Gen Z, however, is the most comfortable with AI agents handling their shopping needs, with 43 per cent expressing confidence in these systems.
Across generations, AI is raising the bar for customer experience. While 64 per cent of Millennials and 55 per cent of Gen Z consumers believe AI enhances customer service expectations, only 53 per cent of Baby Boomers agree. Younger consumers in India are also more inclined to use AI agents for faster and more proactive service, signalling a shift in preferences towards automated yet personalised interactions.
Consumer trust is at a critical juncture, with 51 per cent of respondents feeling that companies mishandle customer data. Additionally, 68 per cent of consumers expect consistent service across departments, and 62 per cent prefer fewer touchpoints to complete a task. Poor customer service remains a deal-breaker, with 41 per cent of consumers avoiding repeat purchases after unsatisfactory experiences.
Transparency is key to bridge the trust gap in the AI era with:
- 68 per cent of consumers who want to know if they are interacting with an AI agent.
- 56 per cent more likely to use AI agents if there is a clear escalation process to human support.
- 59 per cent value clear explanations of an AI agent’s logic.
Despite lingering suspicion (27 per cent) and curiosity (41 per cent) about AI, businesses have an opportunity to showcase its benefits. A significant 53 per cent of consumers are willing to work with AI agents to avoid repeating themselves, and 46 per cent are ready to share personal information if it improves personalised service.
This holiday season presents a high-stakes challenge for brands navigating declining consumer trust and increasing reliance on AI. Companies that deploy trustworthy, transparent AI agents can enhance customer experiences, foster loyalty and drive growth. With young consumers leading the adoption curve, AI agents have the potential to transform retail experiences and set new standards for service excellence.
By prioritising transparency, personalisation and seamless experiences, businesses can turn AI into a trusted ally in rebuilding consumer confidence and navigating the complexities of modern retail.
