SAN DIEGO (KGTV) — As artificial intelligence transforms retail, small business owners are emphasizing the irreplaceable value of in-person shopping experiences while major retailers invest heavily in chatbot technology.
Kimberly Neighbors, owner of Replay Toys, believes face-to-face customer interactions provide something AI cannot replicate.
"It's really cool to watch a kid's face light up when you put that item in their hand, and they're just like oh wow it's so fun, cool and fluffy or squishy," Neighbors said.
The personal touch Neighbors describes contrasts sharply with the current retail trend toward AI chatbots. Many major stores are developing their own beta versions of virtual shopping assistants.
According to a recent study by e-commerce website Narvar, 29% of online shoppers said they either use or plan to use chatbots to shop online. Meanwhile, only 14% of online shoppers said they don't like chatbots at all, down from 35% a year ago.
Farhana Nusrat, an assistant professor of marketing at the University of San Diego, says chatbots make shopping easier for customers and can provide 24/7 assistance.
"For example, if a customer wants to buy a gift for their 12-year-old nephew, the AI can help them understand there are some products this age group's kids would be interested in," Nusrat said. "They can answer some questions about those specific products, how customers compare two or three different options that they're confused between and in some cases even complete the purchase through the chatbot chat."
However, implementing AI technology comes with significant costs. Buying an AI system can range from $5,000 for simple models to over $500,000 for complex systems.
While helpful for big businesses, Nusrat says the technology can negatively impact small businesses that lack access to these expensive systems because it limits the number of potential shoppers they can reach.
"Smaller businesses who might not have the budget to do that, don't have the bandwidth to do that, definitely suffer from this because they will definitely not be the top search choices when the customers are talking to ChatGPT or Gemini," Nusrat said.
Despite acknowledging that technology is changing people's shopping habits, Neighbors still believes businesses like hers serve an important purpose.
"In stores like this, the item is going to find you," Neighbors said. "Like you're not going to know exactly what it is you want. You can't type it in you just have to come in."
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
