For retailers, every service interaction is a moment of truth: whether it’s checking the status of a delivery, resolving a return, or fixing a billing error. Shoppers have endless alternatives, so speed, ease, and fairness directly shape loyalty and repeat purchase. Getting it right makes the difference between a longtime fan or a lost customer. We asked nearly 1,600 consumers, almost 500 retail leaders, and over 200 retail agents across 22 countries to weigh in—and the data is clear: contextual intelligence is the future of CX in retail. But right now, shoppers’ view of AI in retail is just lukewarm: only 53% trust it. Deploying AI that understands not just a shopper’s question, but their history, intent, and the urgency of the situation is now essential. Experiences should feel personal—and service should feel effortless.