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AI Took Over Holiday Customer Service in 2025 But Most Shoppers Still Preferred Humans, New Liveops Survey Finds

via Business Wire

First look at 2025 holiday shopping shows 78% of consumers used AI for help, yet only 29% say it improved their experience

Artificial Intelligence surged throughout the 2025 holiday shopping season, but consumers remain divided on its impact. New data from the Liveops 2025 Holiday AI & Customer Service Report shows that nearly 8 in 10 consumers (78%) have used AI or automation for customer service this season, and 73% say they’ve relied on it more than last year. Yet despite its ubiquity, only 29% say AI has improved their experience, while 54% say human agents are still doing better.

The survey of 1,000 U.S. adults who had completed most or all of their 2025 holiday shopping captures a retail landscape in which AI delivers speed and convenience but still falls short on empathy, context and problem resolution.

Key findings from the report include:

  • AI became nearly universal: 78% of shoppers interacted with AI or automation this season, and 73% said they used it more often than in 2024.
  • Automation surged across digital channels: Consumers saw the biggest increase in automation in online chat and website help (61%), followed by customer service phone lines (39%) and automated emails and texts (36%).
  • Speed improved, but experience did not always follow: 85% of respondents said AI sped up service and made it more accessible, and shoppers were more than twice as likely to report an improved holiday experience (29%) than a worse one (14%).
  • Human expertise still leads: 54% said human agents delivered better service than AI, 55% had to escalate an AI-handled issue to a human, and 45% said AI failed to understand their problem.
  • Transparency remains a major gap: Only 22% said companies clearly disclosed when AI was used, while 69% said they believe brands should always reveal it.
  • Generational differences stood out: AI use varied sharply by generation: 89% of Gen Z used AI during holiday shopping, compared to 60% of Boomers.
  • Consumers want better AI, not more of it: Despite generally positive experiences with AI speed and accessibility, only 17% of shoppers want companies to increase their use of AI next year, while 32% want less.

The findings portray AI as nearly universal in 2025 holiday customer service, delivering clear gains in speed and availability while leaving important expectations unmet around empathy, understanding and transparency. Consumers used automation across channels and, in many cases, appreciated the convenience. At the same time, escalation rates and concerns about disclosure show that shoppers still look to people rather than technology alone when something goes wrong or when trust is at stake.

“Shoppers aren’t asking for more AI, they’re asking for better AI,” said Molly Moore, COO of Liveops. “Speed alone isn’t enough. This season made it clear that automation should remove friction, and human support should handle the moments where trust, empathy, and context matter most.”

Looking ahead, the report indicates that brands will be best served by hybrid service models that blend automation with human expertise, make AI usage transparent and prioritize the quality, not just the volume, of automation. Consumers are not rejecting AI; they are asking for tools that resolve issues efficiently, recognize context and make it easier, not harder, to reach a person when needed.

For the full results and additional insights, view the Liveops 2025 Holiday AI & Customer Service Report.

About Liveops

Liveops is redefining what outsourced customer service means in a modern, always-on world, built on the belief that genuine connection drives brand loyalty. For over 25 years, we’ve paired cutting-edge technology with trusted, remote, and empathetic human expertise to deliver agile, high-touch customer support solutions that scale with precision and care. As pioneers in the flexible workforce model, we bring global reach with unmatched adaptability—helping brands meet customer needs, anywhere, anytime. From complex interactions to seasonal surges, we proudly serve Fortune 500 and enterprise clients—delivering personalized experiences that earn trust and drive lasting impact. It’s not outsourcing, it’s outsmarting.

For more information, visit www.liveops.com.

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