Sales Strategy
Digital Avatars Signal a New Phase in Retail Customer Experience January 13, 2026 (0 comments)
Louisville, KY--Retailers serving global customers continue to struggle with delivering consistent, high-quality service at scale. While automation and chat-based tools have improved efficiency, they have not replaced the clarity, empathy, and immediacy of in-store assistance. This gap increasingly affects loyalty and revenue as customer experience becomes a key competitive factor.
[Image via iStock.com/Salah Takwa]
An article published by Retail Customer Experience notes that poor customer service already costs businesses billions annually, and a majority of consumers are willing to switch brands for better experiences. Despite heavy investment in AI, most customer-facing implementations remain text-based. The article cites research showing that chatbot usage during customer service interactions remains low, indicating limited customer acceptance.
The article argues that generative AIs impact on CX will extend beyond text interfaces. It identifies digital avatars — AI-powered, human-like agents capable of real-time, face-to-face interaction—as a more effective alternative. These avatars combine large language models, voice synthesis, and facial animation to deliver multilingual, personalized conversations through websites and mobile apps. They can be trained on company data and integrated with backend systems to manage tasks such as order tracking, returns, and inventory queries.
The article also references scientific research suggesting that humans respond to lifelike digital faces in ways similar to real human interaction, increasing engagement and trust. This response, the article notes, improves the effectiveness of avatars compared with text-only systems.
Early adopters include Chevron, Qatar Airways, and Deutsche Telekom. The digital avatar market is projected to grow substantially over the next decade, signaling growing enterprise interest.
The article concludes that AI-powered digital avatars offer retailers a scalable way to reintroduce human-like service into digital commerce.
Read the article by Retail Customer Experience here.