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AI & Customer Experience
May 13, 2025
11 min read
Artificial intelligence is gradually transforming customer experiences and often replaces human agents in different industries. eCommerce is one of the brightest examples. But does it really mean that interaction will be fully digitalized one day? Or is there still space for human communication? These are some of the questions that the Innovantage podcast host and Sigli’s CBDO Max Golikov prepared for his new guest.
In the latest podcast episode, Max had an insightful conversation with Tomer Azenkot. After starting his career in tech and product management about 20 years ago and then moving into sales leadership in enterprise software, Tomer joined Vee24 as its CEO in 2022. Vee24 is a SaaS platform that helps businesses elevate customer experience on their websites by incorporating video chat and other chat tools as part of the customer journey. Currently, the company is mostly focused on eCommerce businesses.
Over the past two years, the rise of AI chatbots and especially widely known tools like ChatGPT has significantly impacted the digital commerce landscape. A key topic of discussion today is how these tools influence the customer journey and whether they compromise the human element of the online experience.
AI brings efficiency. But it can’t always replace the value of human interaction. As Tomer explained, at Vee24, they always try to identify moments within the customer journey where a personal touch is still essential. In these cases, relying solely on bots can lead to frustration. Many users still prefer to reach a real person when AI falls short.
To support his words, Tomer provided a couple of real-life examples.
AI is highly effective for straightforward customer needs. For instance, it is exceptionally good at checking an order status. In such cases, customers appreciate quick, automated responses. Human assistance is not needed.
However, complex or emotionally driven tasks, such as choosing jewelry for your wife, require human connection. In such situations, it is still worth speaking with a knowledgeable salesperson who can offer personalized advice and even showcase products over high-definition video. This is where Vee24 entered the game by bringing the in-store experience online through real-time, human-led video interactions.
According to Tomer, 90-95% of customer journeys can be handled efficiently by AI. However, the remaining scenarios, where trust, emotion, and nuanced guidance matter, still demand a human touch. Many retailers have heavily relied on AI by applying it in the wrong contexts. As a result, this has led to poor customer experiences and lost business. The key is striking the right balance between automation and human engagement.
A good example of effective AI-human integration comes from Jordan’s Furniture, a regional furniture chain in the northeastern US. They have structured their website to direct interactions based on the nature and value of the customer journey.
AI chatbots handle the majority of routine, transactional tasks, like checking order status or initiating returns. They do it very efficiently. However, there is also an option to transfer the conversation to a human agent if needed. This keeps operational costs low while ensuring customer needs are met quickly.
When people are looking for high-value pieces of furniture, the site connects them with a live salesperson in-store. These experts guide customers through the showroom via live video, offer personalized advice, and often successfully upsell related items, replicating the in-store experience online.
The limited adoption of video in online retail highlights a significant opportunity, and Vee24 is actively addressing it at the current moment. While video shopping experiences are more common in markets like the UK, where several furniture retailers already offer live video consultations, the US market has been slower in adopting this approach.
One key reason is cost. Many US retailers have prioritized AI solutions to cut operational costs, often at the expense of customer experience. Hiring human agents, especially for video, is believed to be pretty expensive compared to implementing automated bots.
However, data from Vee24’s customers shows that the investment pays off. Live video consultations significantly boost conversion rates and increase average order value by two to four times. For high-consideration purchases, especially in sectors like furniture, the return on investment justifies the added human involvement.
Tomer shared that one of the questions that he has for Vee24’s prospective clients is “What happens when a customer walks into your physical store?”. In most cases, staff are available to guide, advise, and enhance the shopping experience. But online, many retailers expect customers to navigate complex purchases fully on their own.
This disconnect is especially striking in sectors like furniture, where high-touch sales are the norm in-store. Despite the fact that eCommerce often generates a significant share of sales, retailers frequently underinvest in online human support.
A decade ago, business communication relied almost entirely on audio conference bridges. Long meetings involved dialing in, entering codes, and trying to figure out who had just joined. Now, that feels outdated. Video calls have become the norm, especially following the shift driven by the COVID-19 pandemic.
The same evolution is beginning to unfold in e-commerce. While text-based chat remains the default on most websites in 2025, it may soon feel just as outdated as those old phone bridges. Video is no longer a cutting-edge technology. This technology is already mature and widely accessible.
What’s innovative today is not the video itself, but how platforms can integrate it into intelligent, human-centric customer journeys. That’s where the value is created.
Tomer believes that AI adoption is far more than just hype. AI can be integrated in many practical value-driven ways. For example, AI-powered chatbots and tools can be used for sentiment analysis that helps improve customer interactions by learning from past conversations. He also mentioned that Vee24’s engineering team relies on AI to write code more efficiently, debug faster, and optimize development workflows.
As it is said, in the short term, the impact of technologies is often overvalued. But in the long term, it is undervalued. Therefore, the key is using AI intentionally, not just to follow trends, but to solve real problems.
The best way to introduce new technology is through structured experimentation. For example, this can be A/B testing on a website or piloting a new internal tool. By setting clear metrics and measuring outcomes, businesses can make a well-informed conclusion on whether it will be feasible to invest in the scaling of these initiatives.
Tomer shared that in some early chatbot deployments, results didn’t meet their initial requirements. However, the team made the required adjustments and achieved the desired improvements.
The balance between AI and human agents is another area where ongoing tuning based on real-world data is essential.
A recent internal success story illustrates this well. While preparing to launch its new website, Vee24 tested a generative AI website builder. For just $20 a month, the tool, driven by natural language prompts, produced an 80-90% complete site within hours. The ease of making edits, like resizing a logo with a single prompt, and the speed of iteration were eye-opening. Though not suited for complex or highly regulated sites, the solution exceeded expectations and showcased AI’s value for the right use case.
Quick fixes through AI are largely a myth, especially in traditional retail. Many of the companies Vee24 works with are over a century old and are naturally cautious about change. These organizations often value human interaction deeply and are not quick to adopt new technology.
Some businesses may initially see AI as a “silver bullet” and be ready to apply it everywhere. However, for Vee24, the real challenge is typically the opposite. The company needs to overcome resistance to change and encourage retailers to shift their mindsets. Unlike tech companies that may chase innovation aggressively, retail businesses move more slowly. They require thoughtful, well-integrated solutions rather than instant transformations.
Why is it so?
Tomer provided a couple of examples from his practice. Watches of Switzerland, a major retailer of luxury watches, has modernized its customer service approach over the past five years. Initially relying solely on phone and email support, the company now has dedicated video agents in both London and the US to offer live consultations online.
These video interactions mirror the boutique experience by delivering personalized, high-touch service to digital shoppers. Given the high value of their products, which can exceed $100,000, the company prioritizes human interaction over automation.
This approach contrasts sharply with mass-market retailers like Amazon, where AI-driven, efficiency-first models dominate.
Another example that Tomer mentioned was a women’s bra company. The company was struggling with a return rate exceeding 50% and was exploring the use of live human support to complement its existing AI solution. Despite having an advanced sizing app that helps customers find the right fit using their phones, the business still faced significant returns often due to user error during the sizing process.
Recognizing the limitations of AI, the company wanted to add expert human guidance to the online shopping experience. The goal wasn’t just to improve customer experience or achieve higher sales. The most important task was to reduce costly returns that threatened business sustainability.
A common issue in implementing AI is the misconception that it’s a quick fix or a magical solution that will solve all problems without human input. Many businesses mistakenly assume that once AI is introduced, it will instantly deliver perfect results without the need for fine-tuning or oversight.
In reality, AI may handle the first 80% of a task quickly and successfully. For example, it can generate a website in hours. However, refining that last 20% to meet specific needs often requires significant additional work.
Success in AI projects and modern sales is driven by a mix of clear expectations, smart implementation, strong processes, the right people, and reliable partners. AI should be seen as a tool to support (not replace) the human touch.
At the heart of business success lies customer experience. People don’t just buy products. They buy from people they trust and like. A great experience builds loyalty. Quite often, it becomes even more significant than price or speed.
AI plays an increasingly large role in customer journeys. However, according to Tomer, truly memorable experiences are still mainly human. No one says: “The AI experience was so great, I’m definitely coming back because of it.”
Brands that prioritize meaningful human connection will always stand out.
While discussing the power of AI in the modern business world, Max also asked Tomer whether he really believes that it is possible to build a successful project valued at $1 billion without having a full-time team.
Tomer explained that if the idea is compelling enough, such a scenario can become a reality. At Vee24, they have significantly reduced full-time staff and leaned into outsourcing across various functions like sales and support. Despite being external, these team members feel like part of the company.
Vee24 has shut down physical offices and the entire team operates almost entirely remotely. This flexibility has helped the company cut costs and scale seamlessly. While it’s not literally a one-person business, even with outsourced talent, the structure allows it to set ambitious revenue goals.
Today, there can be different approaches to building a successful company. You can hire a big team of more than 300 employees, or you can rely on international outsourcing and automation. They both have their advantages and limitations, which every funder should carefully consider.
Tomer predicts that businesses will become significantly smarter in their use of AI, will start deploying it more effectively, and will understand when not to use it at all. Today, many negative AI interactions stem from misuse or poor implementation. In the future, companies are expected to adopt a more strategic approach.
AI is projected to become a standard component of digital customer experiences, particularly in backend operations. This includes data analysis, reporting, and customer behavior evaluation. Namely, in these areas, AI demonstrates its outstanding performance.
Another growing tech trend, according to Tomer, is the use of video. He anticipates an increase in video consultations and interactions over the next five years.
Tomer mentioned that one of the most overlooked technologies in today’s retail space is appointment scheduling. While it is a cornerstone of productivity in the tech and business world, its potential in commerce hasn’t been fully realized yet. In business settings, nearly everything runs through a calendar. But when it comes to our personal lives, especially how we interact with retailers, scheduling is rarely part of the process.
This case reveals a significant opportunity. For example, buying a diamond isn’t something most people do impulsively. It’s a considered purchase. Scheduling a consultation and seeing it seamlessly added to your calendar, just like any important meeting, brings a sense of clarity and professionalism to the experience.
Though the retail world continues to digitize, the most successful businesses will be those that blend the speed and efficiency of AI with personalized human interaction. AI has proven its power in handling routine tasks and streamlining operations. But when it comes to building trust, guiding emotional purchases, or offering expert advice, human connection remains irreplaceable.
Technology is advancing fast, but the heart of great commerce is still human. That’s the main insight that Tomer shared with Max and with the entire audience of the Innovantage podcast.
Want to get more insights from business experts and tech leaders? New podcast episodes will be available soon.
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