In the upcoming year, enhancing customer experience (CX) is paramount, as recent surveys reveal increasing dissatisfaction among consumers. The "National Customer Rage Survey" indicates that 77% of customers faced product or service issues within the last year, marking the highest level recorded. Furthermore, 68% of those surveyed described the complaint process as requiring "high" or "very high" effort, mainly due to long waiting times and difficulties in contacting support.

Despite companies believing in AI's positive impact on CX, consumer sentiment differs. A study by Kinsta and Propeller Insights found that 93.4% of U.S. consumers preferred human interaction for customer service, with many willing to discontinue services if only AI support was offered. This gap signals a need for smarter integrations of AI in customer service.

AI is evolving beyond chatbots to become proactive, anticipating customer issues before they arise. For instance, AI agents are increasingly capable of coordinating across marketing, service, and operations, ensuring a seamless customer journey by integrating real-time data to adjust experiences dynamically. This fosters smoother interactions, reducing friction and preventing churn.

However, customers expect transparency and empathy from brands. Smart companies use AI as an infrastructure tool to support human agents, facilitating faster resolutions while maintaining a personalized touch. By applying AI to predict needs and streamline processes, businesses can enhance CX significantly, ultimately building trust with their consumers. In doing so, they will thrive over competitors who focus solely on operational efficiency. In 2026, those who embrace this proactive, human-centric approach will likely see greater customer loyalty and satisfaction.

A recent survey from the IBM Institute for Business Value and the National Retail Federation reveals that consumers find AI agents best suited as deal hunters, equipped to track prices, discounts, and loyalty rewards, thereby notifying users of the ideal times to make purchases. This functionality showcases a concrete application of AI that delivers tangible benefits—helping consumers save money and time.

The survey also highlights the popularity of AI-driven 24/7 customer service agents. These virtual assistants manage inquiries, resolve issues, and provide personalized support, enhancing customer experience across various touchpoints. Notably, 45% of respondents have utilized AI for assistance, while 41% engaged it for product research and one-third for product reviews.

Despite the promising applications, a lack of trust hampers broader AI adoption. Only 24% of consumers fully trust AI recommendations, with others cross-referencing sources for validation. Trust can be cultivated as AI becomes more integrated into daily life and offers consistent and transparent experiences.

To build this trust, AI must deliver accurate recommendations without inaccuracies, as Dee Waddell of IBM Consulting emphasizes. For example, an AI system that recommends shoes based on an individual's style and budget can significantly streamline the shopping experience.

AI customer service agents are also a vital method for fostering trust, as they are more established than other applications. These agents can proactively address customer issues and provide accurate information, promoting positive experiences. However, their effectiveness hinges on the quality of the data they use. Ensuring access to accurate, trustworthy data will make AI agents increasingly reliable and integral to consumer interactions.

SAP recently unveiled its AI-powered retail operating system, Retail Intelligence, set to launch later this year in preparation for the NRF 2026 event. This innovative solution aims to enhance customer experiences by integrating core retail systems for streamlined operations and customer engagement.

Retail Intelligence delivers dependable, consistent interactions throughout the customer journey, allowing for a seamless omnichannel experience. Jessica Keehn, CMO of SAP CX, noted that this system enables retailers to manage operations more effectively, reducing manual labor through robust analytics and automation capabilities. The solution leverages high-quality data combined with AI insights, transforming diverse data sets from sales, inventory, customers, and suppliers into actionable intelligence, thereby preventing issues and improving accuracy.

A key feature of this solution is its ability to simulate data, modeling performance under various conditions, which transitions customer experience teams from a reactive stance to a proactive approach. This anticipatory capability bolsters product reliability and customer trust across channels. Additionally, Retail Intelligence enhances the SAP S/4HANA Cloud, facilitating quicker, informed decision-making and real-time adjustments to market trends.

Further improvements include the implementation of Natural Language Assortment Management, utilizing the AI assistant Joule to simplify inventory management tasks. Retailers can now rapidly adapt promotions and pricing strategies across online and physical stores, ensuring consistency and reducing pricing errors.

Overall, this AI-native solution promises substantial improvements in the retail experience, significantly enhancing item availability and customization, leading to increased loyalty through reliability and a more seamless customer journey. With SAP at the forefront, AI is positioned as an essential asset for retailers looking to thrive in today's competitive landscape.

Amazon has introduced Alexa.com, a dedicated platform for its generative AI-powered Alexa+ assistant, now available to early access customers. This service enhances the user experience by enabling customers to research topics, create content, and plan meals. Notably, Alexa.com can perform tasks such as making reservations, controlling smart home devices, and ordering groceries from Whole Foods Market and Amazon Fresh, streamlining daily tasks through the power of AI.

The new site integrates seamlessly with customers' at-home Alexa devices, allowing for personalized experiences where preferences and chat history are shared across interfaces. By launching Alexa+ in February and continuously expanding its capabilities, Amazon has transformed how people interact with their AI assistants, resulting in a notable increase in engagement—users are having twice the conversations, tripling their purchases, and requesting five times more recipes.

Alexa.com features a personalized navigation sidebar that highlights frequently used functions, allowing users to access recent AI interactions and transition between tasks effortlessly. This innovation adds a layer of convenience that fosters user loyalty and enhances the overall customer experience.

Amazon’s CEO, Andy Jassy, remains optimistic about AI's potential to revolutionize customer interactions, emphasizing its transformative power in improving experiences. The company has further invested in AI with tools like the Rufus shopping assistant and Help Me Decide, which assists customers in making informed purchasing decisions. Competing retailers are also adopting AI-driven solutions, highlighting a growing trend in leveraging technology for enhanced shopping experiences.