Retail has always been a fast-moving industry, but modern brands are facing unprecedented pressures. Customers expect faster service, more personalized interactions, and seamless experiences across every channel. Meanwhile, frontline contact center employees are harder to retain and increasingly expected to handle more complex customer needs.

Whitepaper

The Retail CX Paradox: Rising AI Adoption, While Manual Analysis Persists

Despite AI tech, retailers are challenged by data silos, traditional survey dependency, and governance.

The 2025 CallMiner CX Landscape Report shows that retail leaders are caught in a paradox. On one hand, AI adoption is accelerating faster than ever. On the other, reliance on manual processes and outdated feedback collection methods continues to hold organizations back.

AI: From experimentation to essential

AI is no longer an optional add-on for retailers. What once seemed experimental has quickly become essential for delivering the experiences customers expect. In fact, 81% of retail organizations say AI is at least partially implemented, up from just 57% in 2024 — a remarkable leap in a single year.

Retailers are leaning on AI to personalize outreach, improve agent productivity, and better understand customer behaviors and sentiment. The majority agree that AI is now a cornerstone strategy for their customer success and CX teams.

But, for many, enthusiasm has outpaced readiness. Seventy-one percent of retailers admit they are rolling out AI without the governance structures needed to manage risk. This creates a tension between the desire to innovate quickly versus the need to protect brand trust.

Manual processes holding retail back

Here’s the contradiction: Despite surging AI adoption, many retailers are still relying heavily on manual analysis. Nearly half (47%) say their CX data analysis is mostly manual — a number that has surprisingly grown since 2024. At the same time, the share describing their analysis as mostly automated has declined.

This reliance on manual feedback analysis methods slows down insights, makes it harder to align departments, and often leaves customer frustrations unresolved. In other words, the potential is there, but AI and automation is not being used to full effect.

Traditional surveys: Still the default

Retailers also continue to depend on solicited feedback, such as surveys, to understand customers. Seventy-six percent say the majority of their feedback is solicited, while only 6% are getting the majority of their feedback from unsolicited channels like customer conversations, online reviews, or social media.

This narrow focus can create potential blind spots. Surveys are useful, but they often miss the raw, unfiltered signals that reveal customer sentiment and emotion. Optimistically, many retailers are starting to explore ways AI could help make surveys smarter. Many see opportunities to personalize survey questions, trigger feedback requests during specific points in the customer journey, or integrate surveys with data sources like CRM or call transcripts.

Some progress is already underway. Forty-one percent of retailers are using AI today to enhance surveys and targeted offers. This suggests that while the industry is still in transition, leaders know the value lies in moving beyond traditional approaches.

Turning CX data into value

Collecting data is not as much of a challenge as using it effectively. More than half of retailers admit they aren’t taking full advantage of their CX data, and 95% report difficulties aligning insights across departments.

The positive news? Retailers plan to close these gaps, with 42% intending to use AI within the next 1-2 years to automatically share CX insights across teams. This shift is vital in retail, where omnichannel journeys often span marketing, merchandising, and service. Without alignment, customers encounter disjointed experiences. With it, brands can turn fragmented touchpoints into seamless journeys.

Empowering employees with AI

Retailers are focusing their AI investments empowering employees. More than half are using AI to provide real-time assistance to frontline staff, while others are leveraging it to improve productivity and training.

This focus reflects the industry’s recognition that employee experience (EX) and customer experience (CX) are inseparable. Nearly all retailers agree the two are directly connected. As AI handles routine tasks, agents are left with complex, emotionally charged interactions — and they need the right tools and coaching to succeed.

The future of retail CX

The retail CX paradox is clear: AI adoption is accelerating, but manual processes, survey dependency, and governance gaps remain significant challenges.

The path forward lies in balance. Retailers must blend solicited and unsolicited feedback for a complete view of the customer, make customer outreach smarter and more personalized, and equip employees with AI-driven guidance and coaching. Just as importantly, they must govern AI responsibly to protect trust while scaling innovation.

Those who strike this balance will not only keep pace with customer expectations but will also transform CX into a true differentiator — driving loyalty, growth, and a competitive edge in one of the most demanding industries.