Many UK online retailers admit that their AI initiatives are falling short, Quickfire Digital research finds

Most UK e-commerce retailers are failing to get AI right, despite consumers becoming increasingly accustomed to using the technology in online shopping, according to new research commissioned by Quickfire Digital.

This is based on a sample of 2,005 Brits nd 201 online retailers (10+ employees).

77% of retailers admit there are areas where their AI initiatives need work, while 27% of consumers say they haven’t had any positive experiences with AI at all. 

At the same time, around a third of consumers value automated returns/refund systems (33%), AI generated product descriptions or images (32%), and AI powered customer support (31%).

However, with the UK e-commerce sector having invested an estimated £120 million in AI technologies in 2024, roughly £92 million of that spend could be at risk of underperformance - a figure rising to £230 million by 2030 if current trends continue.

Despite consumers becoming increasingly familiar with AI in online shopping, friction remains a barrier: 37% of shoppers abandon purchases due to complicated checkouts, 19% dislike being forced to use a chatbot, and high delivery fees remain the top deterrent (54%). 

Retailers also know AI still has work to do. When asked which AI applications underperformed, they said AI powered chatbots (29%), data analysis applications (27%), AI driven marketing activities (23%) and content generation tools (20%).

Martin Harper, Co-founder at Quickfire, comments: “AI can transform ecommerce, but it must remove friction and give customers what they actually want to work. Our research shows that things like chatbots and basic AI marketing are not meeting expectations. While failure can be costly, both in terms of wasted investment and abandoned sales, it does leave significant opportunities on the table for retailers willing to invest in smarter, more intuitive solutions.”

Despite the challenges, 23% of retailers reported all AI initiatives had been successful, demonstrating that effective AI can provide a competitive advantage.

Looking ahead, Harper says that retailers should focus on four priorities to make investment count:

• Prioritise experience and retention: Consumers want seamless, reliable interactions; retailers know this and are aligning strategies accordingly.

• Fix loyalty execution: Programmes must be omnichannel and personalised, not just points-based gimmicks.

• Rethink AI in service: Chatbots and surface level AI are failing; the opportunity lies in deeper analytics and customer insight tools.

• Back to basics: Even as AI scales, checkout, payments, and trust remain decisive factors for success.

Harper concludes: “My main piece of advice for retailers is to focus on experience first - investment alone is not enough. And remember that the fundamentals still matter most. Even with AI investment, checkout, trust, and support basics remain critical areas to fix.”

RTIH AI in Retail Awards

RTIH proudly presents the first edition of its AI in Retail Awards, sponsored by 3D Cloud and EdTech Innovation Hub.

This is now open for entries. Deadline for submissions is Friday, 5th December. It’s free to enter and you can do so across multiple categories.

Check out categories and entry forms here.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 29th January. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.