December 18, 2025
What AI Really Did to Holiday CX
The 2025 holiday shopping season marked a turning point for customer experience. For the first time, artificial intelligence became a visible and frequent part of how customers searched, bought, tracked, returned, and resolved issues with their orders.
According to the Liveops 2025 Holiday AI & Customer Service Report, 78% of consumers interacted with AI or automation during their holiday shopping. Seventy-three percent said they encountered AI more often than in previous years, signalling that automation has moved from occasional use to a core layer of holiday CX.
Customers met AI across chatbots, automated texts, delivery updates, self-service return portals, voice assistants, and customer service phone lines. Many consumers encountered AI for the first time this season. The result was a mix of speed, convenience, and growing frustration.
AI Delivered Speed and Raised Expectations
On efficiency, AI largely met its promise. Eighty-five percent of shoppers said automation made service faster and more accessible, especially during peak holiday periods when contact centres are typically overwhelmed. Compared with long wait times and limited support hours in the past, AI offered immediate responses and round-the-clock availability.
This translated into some positive sentiment, especially for customers whose needs were straightforward and could be resolved quickly without human involvement. Twenty-nine percent of shoppers said AI improved their holiday experience, compared with 14% who said it made things worse. While not overwhelming praise, it shows automation did add value for a meaningful share of customers.
However, speed alone did not define a good experience. As AI became more common, expectations grew. Customers were less impressed by quick replies and more focused on whether the system could actually understand and resolve their issue.
Where AI Fell Short
The biggest weaknesses appeared once problems became more complex. More than half of shoppers (55%) said they had to escalate an AI-handled issue to a human agent, while 45% said the technology failed to understand what they needed.
When asked to compare service quality directly, 54% said human agents delivered better support, while only 11% favoured AI. Issues involving missing deliveries, damaged items, billing errors, or time-sensitive holiday gifts often required empathy and judgment.
This led to growing frustration for some shoppers, particularly when AI acted as a barrier rather than a shortcut. Instead of simplifying service, poorly designed automation sometimes created extra steps, repeating questions or forcing customers into loops.
Transparency Became a Trust Problem
Only 22% of shoppers said companies always made it clear when AI was being used. At the same time, 69% believe brands should consistently disclose when customers are interacting with automation.
When shoppers are unsure whether they are speaking to a bot or a person, trust erodes quickly, especially if the interaction goes badly. Customers want clarity, choice, and easy access to human support when needed.
The 2025 holiday season proved that AI can handle volume, reduce wait times, and support customers at scale. It also exposed where automation still falls short. Customers are not rejecting AI, but they are rejecting poorly executed AI.
Only 17% want companies to increase AI use next year, while 32% want less.
