5 Drawbacks of AI Chatbots (and Why Smart Retailers Are Rethinking the Experience)

Business
Marketing
Grant Bostrom
Head of New Ventures
5 min read
February 19, 2025
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The Rise—and Limits—of AI Chatbots in Ecommerce

AI chatbots have become a popular tool for online retailers, often touted as an easy way to automate customer support. While they can efficiently handle routine tasks like tracking orders or processing returns, these bots come with some serious limitations.

Before defaulting to a chatbot as your AI solution, it’s worth asking:
Are they truly helping customers—or just adding noise?

Here are five key drawbacks of AI chatbots that every brand should consider, and why a more tailored approach—like Karley’s AI Shopping Assistant—can deliver better results.

1. Most Chatbots Focus on Post-Order Support

AI chatbots shine when it comes to answering post-purchase questions: “Where’s my order?” or “How do I return this item?” But these only scratch the surface of customer needs.

What about pre-purchase questions—the ones that determine whether a shopper clicks “buy” in the first place?

Examples like:

  • “Is this product suitable for beginners?”
  • “Will this fit in my living room?”
  • “Is this skincare safe for sensitive skin?”

Traditional chatbots often struggle here. They’re reactive, not proactive—and they miss key moments when customers are still deciding what to buy.

2. They Can Mislead or Frustrate Shoppers

Some chatbots try to mimic human conversation too closely. Shoppers think they’re chatting with a real person—only to realize they’re stuck in a frustrating loop of canned responses.

In fact, 78% of consumers report needing to escalate to a human after failing to resolve their issue via a chatbot. That kind of friction can seriously hurt trust and conversion.

3. Low Engagement: Hidden and Ignored

Most chatbots live in the lower-right corner of a page. They’re easy to ignore—and often completely overlooked.

In user tests, we found that only 0.3% of site visitors actually engaged with a standard chatbot.

No matter how smart your bot is, if no one uses it, it doesn’t matter. Visibility and timing are everything.

4. Lack of Personalization

Many chatbots treat every shopper the same, delivering generic responses that fall flat. But modern shoppers expect relevance. They want tailored answers and smart recommendations that align with their intent, preferences, and behavior.

Without that personalized touch, chatbots can feel like a dead end rather than a helpful guide.

5. They Can Be...Annoying

Let’s be honest: pop-up chatbots can get on people’s nerves. Whether it's unprompted greetings or repetitive follow-ups, overly aggressive bots can interrupt the shopping flow and damage brand perception.

When shoppers are just browsing or deep in product details, the last thing they want is an irrelevant “How can I help you?” blocking their screen.

Meet Karley: A Smarter Alternative to Chatbots

Karley is not just another chatbot — it’s a purpose-built AI shopping assistant designed to drive conversion by helping customers before they buy.

💡 Focused on Pre-Purchase Support

Karley anticipates the kinds of questions that impact buying decisions and surfaces them automatically on product pages. Think:

  • “Is this waterproof?”
  • “Will this fit in my space?”
  • “Is this compatible with my setup?”

This focus on pre-purchase guidance helps remove friction and builds confidence—right when it matters most.

📍 Seamlessly Embedded for Higher Engagement

Instead of sitting passively in a chat icon, Karley is embedded directly into product detail pages, where shoppers are already evaluating what to buy.

This placement leads to 10x higher engagement compared to standard chatbot experiences. It’s visible, context-aware, and designed to assist without interrupting.

🎯 Personalized and Adaptive

Karley doesn’t take a one-size-fits-all approach. It adapts to each shopper’s behavior and needs—offering tailored recommendations, answering specific questions, and driving more meaningful interactions.

That level of personalization leads to stronger trust, higher conversions, and better shopping experiences.


Final Takeaway

AI chatbots have their place—especially for basic post-order support. But they fall short when it comes to engaging shoppers earlier in the journey, where purchase decisions are made.

Karley’s AI Shopping Assistant fills that gap. It’s context-aware, customer-focused, and designed to deliver answers when they’re most needed—on the product page, not in a pop-up.

If you're looking for an AI solution that actually moves the needle on sales and satisfaction, it's time to go beyond the chatbot.

Want to learn how Karley can fit into your store? Let’s talk about making your product pages smarter.