Consumer trust sets limits on AI adoption in retail

Offline stores remain central as places of discovery and experience

Retailers are adopting artificial intelligence (AI), but customer trust limits how far it can go in stores and in advice, panellists said at the Retail Asia Summit 2026 in Hong Kong.

Jared Ernest De Guzman, Watsons International Customer Director at AS Watson, said the real test for using AI is how much trust a customer needs.

He described this as a "trust scale". At one end are tasks where customers mainly need information, convenience, and speed. 

AI can help scale these interactions, for example by creating and adapting product information or content around major shopping events such as 11.11.

But as the customer decision becomes more personal, the need for human expertise increases. 

For example, understanding which skincare product is right for you often benefits from the experience and personal advice of a beauty advisor or pharmacist.

Nick Batey, general manager of Marks & Spencer Asia at ALF Retail Hong Kong Limited, said AI is an enabler that frees staff time for human touch, which it will never replace.

Batey said consumer trust is becoming more important in decisions about health or food, and asked whether consumers will trust a machine or a human.

He said that question has to be answered, and “the market will find its way”.

Batey said retailers waste energy working out what consumers want to do, since consumers have been telling retailers for 140 to 150 years.

Theresa Lui, chief people officer at Chow Tai Fook Jewellery Group, said the group has an internal AI tool called AI Avatar, which holds product information and standard operating procedures, allowing sales associates to spend more time with customers.

Lui said this creates a more personal touch, and “technology can empower us to do that”.

She said the group uses a customer relationship management tool to showcase products on Red Book around the clock, because staff cannot stay up 24 hours a day.

AI helps advise staff and remind them of important dates, she said, but it cannot replace human warmth, which is why the group continues to maintain its offline stores.

Jenny Lai, CEO and president of Bluebell Greater China, said the group uses AI for business operations such as store design, where it speeds up the design iteration process.

Lai said AI matters less at the customer touchpoint, and that much of luxury remains “very human”.

Michael Cheng, the panel’s moderator and Hong Kong consumer markets business leader for Deloitte China, said AI is helping to drive business, but retailers must still focus on engaging customers and driving foot traffic and store sales.