Retailers ramp up AI investments amid need to overhaul legacy tech systems

A new report from law firm Eversheds Sutherland, in collaboration with Retail Economics, forecasts a surge in AI investment over the next five years which is set to reshape the UK retail landscape. This is already underway, particularly in e-commerce and digital experiences, contributing to the growth of online sales.

Research was undertaken by Retail Economics in Q3 2025. This included surveys of 250 retail businesses and economic modelling across five countries: France, Germany, United Arab Emirates, the UK and US.

Surveys were completed by roles in operations and human resources. It draws on annual national statistics, ILO Harmonized Microdata, and proprietary data to classify job numbers, wages and sales by country. 

74.8% of retailers plan to ramp up their AI investments over the next five years, with more than half expecting a return on investment within just two years. Growth in sales per employee as a direct result of AI integration in job roles is projected to accelerate from 4% to 6% per year in the initial phase, to between 6% and 9% per year once AI matures. 

Larger organisations (with turnover exceeding £500 million) and medium-sized firms (£100 million-£500 million) are leading the way here. This is driven by the need to overhaul legacy systems and upskill a broader workforce, ensuring AI strategies are seamlessly integrated across all business functions.

Additionally, budgets are significantly higher among online and hybrid retailers, up to 50% greater than those of traditional store-based retailers. 

Digital and Technology Operations are set to achieve the highest levels of AI integration by 2035. Meanwhile Support, Supply, and Marketing functions will see growing enhancement from intelligent tools, enabling more accurate forecasting, decision-making, and customer engagement. 

Naturally, traditional retail roles are evolving due to AI, but the survey findings show that the majority of retail leaders anticipate a rise in higher skilled, better paid roles, and a shift towards more customer centric work.

At the same time, however, the report also identifies existing barriers like system integration (42%), data privacy (42%), and skills shortages (40%). To fully leverage AI in 2026, retailers are advised to invest in upskilling staff, redesign roles, prioritise productivity and innovation, ensure transparency in AI decisions, and safeguard data and workforce wellbeing. 

“The future of retail is a collaboration between people and AI systems, and it is already taking shape,” says Catherine Detalle, Partner and Consumer Sector Lead, at Eversheds Sutherland. “Retailers that foster a culture of continuous learning, prioritise ethical and legal preparedness, and align human AI collaboration with strategic objectives, will be best positioned to remain competitive and lead.” 

RTIH AI in Retail Awards

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

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.