AI in retail

AI Customer Service for Online Retailers: What Works in 2026

What the evidence says about AI customer service for online retailers: productivity gains, shopper concerns, chatbot pitfalls and how to cut WISMO contacts.5 min read5 cited sourcesUpdated

AI customer service works best when it helps people resolve routine questions faster, not when it blocks shoppers from reaching a person. A large study of 5,000 support agents found AI assistance raised issues resolved per hour by 13.8% with no drop in customer satisfaction, yet Gartner found 64% of customers would prefer companies did not use AI for service. For online retailers, the biggest win is often upstream: accurate tracking and order data that stop "where is my order?" questions before they are asked.

What the evidence says about productivity

The most cited field study comes from economists Erik Brynjolfsson, Danielle Li and Lindsey Raymond, who tracked about 5,000 customer support agents as a generative AI assistant was rolled out. Agents using the tool resolved 13.8% more customer issues per hour, and the least experienced agents improved by 35%. An agent with two months' tenure using the tool performed as well as an agent with six months' tenure without it. Customer satisfaction measures did not change significantly, and customers were less likely to ask for a supervisor.

Two lessons for retailers follow. First, AI that suggests answers to your staff is lower risk than AI that talks to customers unsupervised, and it still produces real gains. Second, the biggest benefit goes to new or casual staff, which suits retailers who add temporary help for peak season.

Where service is heading

Vendors and analysts expect AI to handle a growing share of contacts. Salesforce's 2025 survey of 6,500 service professionals found teams estimate 30% of cases are handled by AI today, rising to a projected 50% by 2027. Service reps using AI reported spending 20% less time on routine cases, about four hours a week. Gartner goes further, predicting that by 2029 agentic AI will autonomously resolve 80% of common customer service issues without human intervention.

Peak trading is already testing this. In the 2025 holiday season, Salesforce reported shoppers used retailers' AI and agents for customer service 126% more than in the two months prior, and agents handled 142% more tasks such as updating delivery addresses and starting returns.

These are projections and vendor data, so treat them as direction rather than guarantees. The direction is clear: routine questions are moving to AI.

What shoppers worry about

Customers are not yet convinced. Gartner's survey of 5,728 customers found 64% would prefer companies didn't use AI for customer service, and 53% would consider switching to a competitor if they learned a company would use AI for service. Their top concern was that it would become harder to reach a person, followed by job losses and wrong answers.

Gartner's advice is practical: an AI channel should tell customers it will connect them to a person if it cannot help, and then hand over smoothly with the conversation history intact. For a retailer, that means:

  • Make "talk to a person" easy to find.
  • Pass order details and the chat so far to the human agent.
  • Never let AI invent policy, such as refund terms, that a person has not approved.

Fix the questions before you automate the answers

For online retailers, a large share of contacts are predictable: where is my order, when will it ship, can I change the address, how do I return this. AI can answer them, but only if it has accurate data. A chatbot that cannot see live tracking just produces a faster "I don't know".

The more durable approach is to reduce the contacts in the first place:

  1. Push tracking to every channel automatically. Marketplaces show tracking to buyers when sellers upload it promptly.
  2. Send proactive delays. A message before the customer asks prevents a ticket.
  3. Keep stock accurate. Oversold orders create cancellations, complaints and marketplace performance penalties.
  4. Improve product information. Clear sizing and specifications cut pre-sale questions and returns.

Then use AI to draft replies for staff, summarise long threads and answer the routine questions that remain, with a clear route to a person.

For the governance side, including disclosing AI use and privacy obligations, see AI risks and governance for Australian retailers.

Key figures

  • AI assistance increased customer issues resolved per hour by 13.8%, and by 35% for the least experienced agents (NBER, 2023).
  • 64% of customers would prefer companies didn't use AI for customer service; 53% would consider switching (Gartner, 2024).
  • Service teams estimate 30% of cases are handled by AI now, projected to reach 50% by 2027 (Salesforce, 2025).
  • Gartner predicts agentic AI will autonomously resolve 80% of common service issues by 2029 (Gartner, 2025).
  • Retail AI service agents handled 142% more tasks in the 2025 holiday peak than in the prior two months (Salesforce, 2026).

How eComChannels helps

eComChannels reduces customer service load at the source by keeping order and delivery data accurate across every channel. AI auto shipping books Australia Post, StarTrack, CouriersPlease and Allied Express, prints labels and manifests, and sends tracking back to each marketplace automatically, so buyers can see where their parcel is without contacting you. It also helps manage carrier claims when parcels go wrong.

Order management puts orders from Amazon, eBay, Kogan, Woolworths Everyday Market, your Shopify or WooCommerce store and other channels in one place, keeps stock in sync to prevent oversells and gives staff a single view of each order when a customer does get in touch. Fewer "where is my order" contacts and faster answers mean lower service overhead and better marketplace performance. Book a demo or start a 30-day free trial.

FAQ

Should a small online store use an AI chatbot?

It can help with routine questions, but only if it can see accurate order and tracking data and offers an easy handover to a person. Many small retailers get more value first from automating tracking updates, which removes the most common question entirely.

Does AI customer service hurt customer satisfaction?

In the NBER study of AI-assisted agents, satisfaction did not change significantly while productivity rose. Risks rise when AI replaces people with no handover, which is the top concern customers raised in Gartner's survey.

What should I measure?

Track contacts per 100 orders, the share that are "where is my order", first response time, resolution time and customer satisfaction, before and after any change.

Sources

  1. Measuring the Productivity Impact of Generative AI National Bureau of Economic Research, 2023
  2. Gartner Survey Finds 64% of Customers Would Prefer That Companies Didn't Use AI For Customer Service Gartner, 2024
  3. Gartner Predicts Agentic AI Will Autonomously Resolve 80% of Common Customer Service Issues Without Human Intervention by 2029 Gartner, 2025
  4. AI Expected to Resolve Half of Service Cases by 2027, Data Shows Salesforce, 2025
  5. Salesforce Reveals 2025 Holiday Shopping Data Salesforce, 2026

Figures are from the third-party studies listed and were checked against the source when this guide was written. They are not eComChannels customer results.

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