Is humanized AI the secret of self-service success?

It's fair to say that self-service had a rocky year in 2024. Many major US retailers, including Walmart, Dollar General, and Target, announced they were scaling back their self-checkout operations at thousands of stores across the country.

What's more, in one of the biggest self-service stories of the year, Amazon stopped using its 'Just Walk Out' technology in a number of its cashierless brick-and-mortar convenience stores. 

So, what's changed? Some retailers say they're simply returning to 'business as usual' after investing heavily in self-service during the pandemic. As customers return to their normal shopping habits, demand for self-service has dropped. 

But that's not the only reason. Big brands argue that people prefer the human touch – a truly essential part of life, not just retail experiences. Technology, they say, risks eroding the rapport brands have built with their customers.

"We believe [more cashiers] will improve the in-store shopping experience, and give our associates the chance to provide a more personalized and efficient service," Walmart spokesperson Brian Little said.

Is Walmart right? Well, we all probably have an anecdote about a retail worker who absolutely delighted us. The human touch cannot be understated. And research suggests retailers might have a point. 

More than a quarter (27%) of customers say having to use self-checkout was an issue that annoyed them about shopping in-person within the last 12 months. 

A recent study from Drexel University also found that customers who use traditional checkout services are more likely to be loyal to a brand than self-service users. This is especially true when people are doing a 'big shop' of 15 or more items. 

So is self-service dead? Of course not. But it is evolving. There are still benefits to self service that customers love; but downsides that need correcting. Let’s take a look.

Speed and convenience: The benefits of self-service

Any brand that takes a one-size-fits-all approach to customer service is likely missing a trick. While some consumers may prefer a traditional approach, there are many others who enjoy the speed, privacy, and shorter lines that self-service technologies provide.

For example, around 43% of shoppers in retail outlets choose self-service over regular checkouts, according to NCR Voyix's Digital Commerce Index. For younger customers – those aged between 18 and 45 – it's actually the majority (53%) who prefer self-service.

Supermarket shopping is just the tip of the iceberg, though. Online booking systems, healthcare portals, finance apps, and local government services all incorporate self-service options. 

If done correctly, self-service is not only faster and more convenient, but it can also improve accessibility. This gives people more options to interact with brands and organizations across their preferred channels, whether online or in-person.   

For businesses, the commercial case for self-service is also compelling. One study found that queries handled by human employees can cost anywhere between $6 and $12 to resolve, whereas self-service costs may be as low as 25 cents per query. 

This puts organizations in a tough spot. How do they provide the genuine interactions that customers clearly crave (and keep them loyal), while delivering the speed, convenience, and long-term cost savings of self-service? 

For many large enterprises, digital humans have been providing the answers. 

Self-service with digital humans 

So, why digital humans? Okay, cast your mind back to the last time you went shopping for a big-ticket item in-store – something worth more than $1,000. 

Did you pick the first product you saw and whizz through self-service checkouts? Probably not. You likely wanted to compare products, learn more about different features, and weigh all your available options before parting with your hard-earned cash.

Like with many high-priced items, you will have had some doubt in your ability to make a costly decision – it’s only natural. 

This is where talking to a friendly, knowledgeable staff member makes a difference. Their insights and guidance can give you the confidence you need to make more informed purchasing decisions. After all, confidence converts. And that's because customers don't just want answers, they want to feel seen, heard, and understood – and then helped.

Recreating a similar experience online through self-service is painful. Traditional FAQs and clunky self-service tools often fall short, leaving people feeling frustrated and disconnected. 

Frankly, they’re abandoned in a way that’s never been OK in physical retail. So why is it acceptable in eCommerce?

The benefits of putting the human touch back into customer experience

‍Digital human AI assistants have been offering an online self-service approach that many will recognize – one-on-one, personalized interactions that feel fun, engaging, supportive, and human. Indeed, digital humans engage in real conversations, with expert knowledge and personality, much like a skilled customer service rep. 

Take, for example, a customer upset about a faulty product. A digital human won't just provide a solution, they respond with empathy; their tone and expressions will show they truly understand your frustration.

Or perhaps your customer is excited about a particular product or service? A digital human can recognize how they feel and reflect their mood, amplifying the moment and making it more memorable. 

Humanizing AI in this way enables digital humans to meet a customer's emotional needs as well as their practical ones. 

The results speak for themselves: some of the largest retailers in the world have seen customer engagement rates leap by 300% compared to traditional self-service tools. Conversion rates also increase, while cart abandonment rates and returns plummet. All because customers feel more confident in their purchasing choices.

And it’s not just in retail. One of the biggest US telcos saw a 25% improvement in containment rate through their UneeQ digital human, as fewer people insisted on speaking to a human rep while on customer support calls.

With their warmth, friendliness, and ability to pick up on emotional cues, digital humans create experiences that make people feel valued. In other words, customers don't just interact with self-service digital humans – they enjoy it!

Finding the right self-service balance 

Looking ahead, one thing stands out: the future of self-service isn't about choosing between technology and human connection. It's about combining them in a way that feels right – in a way that customers feel is right. 

Digital humans provide that bridge, offering the speed and convenience customers expect while keeping the personal touch they value. 

Brands who get this balance right won't just solve problems – they'll build real trust and loyalty. 

In a world where every interaction counts, humanized AI isn't just a clever tool; it's the next step in customer service. And it's already here.