Remember when everyone thought bots would take over the world by 2025? We were all imagining a future where AI ran everything from our coffee makers to our customer service. Fast forward to today, and reality has hit like a cold splash of water. Case in point: McDonald's recent retreat from their AI-driven drive-thru experiment. Turns out, human workers are a lot less inclined to misunderstand an order of 260 Chicken McNuggets. Who knew?

It's not just McDonald's hitting the brakes on AI. Many businesses that jumped on the AI bandwagon are now pumping the brakes, realizing that the promise of AI replacing humans might have been a bit overblown. From chatbots that fail to understand the simplest requests, to automated calling systems that leave customers yelling, “speak to representative!”, it's becoming clear that AI isn't always the magic solution it was hyped up to be. So why exactly are businesses, especially in retail, finding more success with good old-fashioned human clienteling?

Sure, AI can process data at lightning speed and predict your next purchase with eerie accuracy, but there’s one thing it can’t do: be human. Retail is as much about building relationships as it is about selling products. When a customer walks into a store, they want to feel valued, understood, and appreciated. A friendly smile and a genuine conversation can make all the difference; something no AI can replicate.

Humans excel at empathy, a crucial element in customer service, and a huge reason why the majority of shoppers still prefer to engage with humans. In fact, 81% of customers in a recent survey said that they would rather wait one to over eleven minutes to speak with a human instead of an AI bot. Human agents were also perceived to outperform AI assistants as well. And a key quote to consider:

Imagine walking into a store feeling frustrated because you can't find what you're looking for. An AI-powered store might suggest a product based on your browsing history, but a human associate can sense your frustration, offer reassurance, and help you find exactly what you need. This personal touch builds trust and loyalty, turning one-time shoppers into repeat customers.

AI systems are only as good as the data they’re fed and the scenarios they’ve been programmed to handle. Throw them a curveball, and they often fumble. Humans, on the other hand, excel in adaptability.

Yes, the promise of generative AI is to be as adaptable as a human, but as of right now, an experienced sales associate can handle a much wider range of unexpected situations - from a last-minute change in an order, to a customer with a unique request. This flexibility ensures a smoother, more satisfying shopping experience.

This is why human-driven chat like Endear’s SalesChat is growing in popularity for omnichannel retail businesses over purely AI-driven chatbots. By connecting an online shopper with a live sales associate, they can focus on helping with more than just returns, ultimately leading to a happier customer… and more upselling.

For example, consider a shopper who goes shopping online looking for a gift but has no idea what to buy. If the brand has Endear on their ecomm site, a human associate via SalesChat can access that customer’s order history, ask questions, and make personalized recommendations based on subtle cues that an AI might miss. This adaptability not only meets customer needs more effectively, but also enhances the overall shopping experience, creating a sense of care and attentiveness that’s hard to beat.

AI might know your purchase history and preferences, but it can’t remember your kids’ names or that you love a good chat about the latest Netflix series. Human associates build genuine relationships with customers, creating a sense of community and belonging that goes beyond transactional interactions. This relationship-building is vital in retail, where customer loyalty is the key to long-term success.

Remember that many businesses implement AI not to improve customer service, but in service of their bottom line. According to McKinsey, “revenue generation” was a priority to about 5% of customer care leaders. Today, it’s a priority for a third of them:

A decade ago, the popular money-saving strategy was about offshoring local customer support for cheaper customer support labor. Today, it’s about offloading to algorithms. And while that may be fine for basic support, that doesn’t build loyalty to brands in the retail space.

Think about your favorite local store. Chances are, it's not just the products that keep you coming back, but the people. They know your preferences, they ask about your day, and they make you feel like more than just a customer. This level of personal engagement fosters loyalty and encourages repeat business, something that’s difficult to achieve with AI alone.

The hype around AI replacing human customer service might have been premature. As businesses like McDonald's are discovering, there’s still no substitute for the human touch. In retail, where customer satisfaction and loyalty are paramount, human clienteling proves to be more effective. The irreplaceable human empathy, adaptability, and ability to build genuine relationships are just a few reasons why businesses are backtracking on AI and doubling down on their human staff.

So, next time you’re frustrated with an automated system that just doesn’t get it, take heart. The future of clienteling looks a lot more human than we might have expected. And maybe that’s not such a bad thing after all.