Artificial intelligence (AI) is gaining unprecedented acceptance among holiday shoppers this year, but consumers are calling for retailers to be more upfront about when the technology is being used, according to new survey findings.

The third annual AI Holiday Shopping Report from Talkdesk Inc. reveals that three-quarters of consumers plan to use AI to find deals this season, compared with 66% in 2024. Two-thirds say they will rely on AI for gift ideas, up from 54% last year.

Still, despite growing enthusiasm for the technology, a significant trust gap exists. A whopping 84% of shoppers want to know when AI is being deployed, yet only 51% of retailers currently using the technology disclose its presence. Additionally, 60% of consumers are calling for stricter AI oversight from both retailers and regulators.

The findings suggest consumers believe AI will improve their shopping experience. Compared to last year, 69% think using AI will make them happier during the holiday season, while 70% expect it will reduce anxiety. Nearly eight in 10 believe the technology will help them save money, and 73% say they’ll be less likely to return products.

Among retailers already using AI, adoption is accelerating rapidly. The survey found 85% now use AI for predictive analytics, up 24 percentage points from 2024, while 83% deploy virtual agents for customer shopping support and 79% use them for customer service. Confidence in AI’s return on investment has surged correspondingly, with 80% of retailers expecting higher holiday sales because of the technology.

However, retailers not yet using AI appear increasingly complacent about the competitive risk: 73% say they’re not worried about losing sales to AI-powered competitors, up from 41% in 2024.

“Responsible AI use is not a paradox,” Michael Klein, head of retail, travel and hospitality product marketing at Talkdesk, said in a statement. “The retailers that thrive this holiday season will use AI strategically and responsibly, blending innovation with integrity to build lasting customer loyalty and trust.”

Talkdesk commissioned Pollfish to survey 1,000 U.S. consumers, 150 U.S. retailers currently using AI, and 150 U.S. retailers currently not using AI in September.

The survey results come amid separate research that AI agents will outnumber human online shoppers by 2026, with many designed for malicious purposes.

Peter Horadan, CEO of identity verification firm Vouched, predicts a “bad agent economy” where AI systems will overwhelm digital marketplaces, impersonate users, and manipulate customer behavior. Like credit scores for humans, AI agents will require trust scores determining their platform access.

Vouched has developed Know Your Agent (KYA) technology to monitor agent activity and detect malicious AI, addressing growing cybersecurity concerns about autonomous systems operating at scale in e-commerce environments.