AI technology adoption surges as majority of UK retailers now have Chief AI Officers to drive strategy

99% of UK retail decision-makers report some form of AI expertise in their business, while 88% believe AI helps local retailers compete more effectively with global retail powerhouses. That’s according to research by monday.com that surveyed 500 retail leaders.

From dynamic pricing and personalised marketing to smarter supply chain visibility, the technology is helping local retailers meet rising customer expectations and respond quickly to change.

The data shows that AI is now fully mainstream in UK retail, with 99% of respondents stating their business uses it for decision making. Many have gone further: 61% state their company has dedicated leadership or teams in place, including Chief AI Officers. 

What stands out is the balance retailers strike between AI and human oversight:

• 92% of UK retail decision-makers say AI is not yet making key business decisions autonomously

• Its role remains largely supportive: 36% state AI provides insights, but humans make the final decisions

• Caution extends to customer experience - 49% agree that AI is not yet ready to manage the customer journey from end to end

While the conversation around AI agents often focuses on the future, the reality in UK retail is that these systems are already live across key functions and delivering impact: 

• 90% of UK retail decision-makers say their business is actively exploring AI agents, with a third already in the implementation phase

• 55% are using AI agents for customer service (e.g. chatbots) 

• 49% are applying them to boost operational efficiency

• 48% support marketing and content creation

• 51% expect AI agents to manage most customer interactions within five years

Among the top challenges in deploying AI agents, 54% cite concerns about output quality and consistency across systems, while 45% point to privacy issues - particularly in social commerce.

Integration and customer trust are also front of mind: 44% say integration with current systems is a key challenge, and 42% worry that AI agents could alienate customers. Still, the data suggests a clear path forward - 57% agree that consumers will be more loyal to brands that are transparent about how AI agents operate, pointing to openness as a critical trust-builder.

The reality of integrating AI into retail operations is still relatively tricky, however. 97% of UK retail decision-makers say their business faced at least one obstacle when adopting AI tools. 45% cite cost as a barrier, while 40% report employee resistance to change.

Despite these hurdles, most retailers aren’t questioning whether AI belongs in their strategy - they’re focused on making it work. And when it does, the benefits include:

•  74% say AI will help deliver more personalised in-store and online experiences through tailored recommendations

• 73% note that generative AI and chatbots now handle the majority of basic customer requests, giving online service reps more time for high-value interactions

• 72% believe AI will improve supply-chain transparency and resource allocation

Ben Barnett, Regional VP for UKI at monday.com, says: “AI is no longer a future investment for UK retailers - it’s something they’re using right now to stay competitive in a high pressure sector. What stands out in this data is how national and regional brands are being thoughtful - not just piling on new tools, but using AI to streamline what already exists and support the people doing the work.”

“We see that every day - the most successful teams aren’t using the most tech, they’re using it in the clearest, most integrated way. AI works best when it’s embedded into the systems teams already use - when it reduces friction, rather than creating more.”

2025 RTIH INNOVATION AWARDS

AI will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.