Retail technology gone wrong: many UK consumers uncomfortable with way retailers are using AI

New research by SCAYLE, part of Zalando, finds that one in three UK shoppers are abandoning brands, and almost half are uncomfortable with some of the AI tools retailers are using.

Key findings from its survey of more than 1,100 Brits include:

• Only 16% of shoppers are comfortable with how retailers are using AI. 44% of consumers are uncomfortable with retailers using AI generated product images and models, 41% are uncomfortable with AI generated video content, and the same number with customer service chatbots. 

• Shoppers are open to the benefits of AI in the buying journey - if it’s done correctly. 21% rank finding products faster first among the positive impacts of AI. 19% rank better customer service and more personalised offers first. 

• 57% of consumers cite increased prices as their primary reason for abandoning brands. Online shoppers are also very likely or likely (each 40%) to abandon their carts when their preferred payment method isn’t available. Flexible payment options are no longer a ‘nice to have’ - they are an essential part of the shopping experience.

• Poor customer service (50%) ranks nearly as high as price concerns (57%) and inconsistent product quality (53%) among reasons shoppers leave brands. While 41% of shoppers are uncomfortable with AI powered chatbots, 19% rank a better customer experience first in what to expect from AI in their buying experience. .

• 57% of consumers prefer a mix of both online and in-store shopping, with ‘buy online, pick up in-store’ (46%) and ‘buy online, return in-store’ (40%) ranking as the most valued omnichannel features.

• 62% of UK shoppers expect regular discounts when joining a loyalty programme. 30% expect services like free shipping, or buy now, pay later, and 26% expect free returns. Loyalty programme should be free according to 42%. 

The research also highlights generational divides among UK shoppers’ behaviours and preferences:

• 35% of Gen Z (ages 16-26) are likely to sign up for subscription services from retailers they shop with. 10% are even very likely to sign up for it. This is more than double the number of Baby Boomers (ages 59-68) likely to sign up (21% and 1%), and significantly higher than the average (27% and 7%) across all age ranges. 

• 59% of Gen X (ages 43-58) cite lower prices as their top reason for choosing large enterprise retailers over local and medium sized retailers, compared to just 44% of Gen Z and 46% of Millennials.

• 28% of Millennials (ages 27-42) shop exclusively online. This is double the number of ‘online only’ Baby Boomers (15%) and, surprisingly, even Gen Z (14%).

• 46% of Baby Boomers express discomfort with AI chatbots, compared to 34% of Gen Z.

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.