New Quickfire Digital research reveals how AI and legacy technology are failing e-commerce sector
A widening gap between the promise of AI driven e-commerce and the reality of legacy retail systems is leaving consumers frustrated and retailers unable to deliver improvements, according to research by Quickfire Digital.
Drawing on surveys of both consumers (2,028) and online retailers (201), the UK-based study found that 45% of the former are frustrated with AI powered e-commerce experiences, specifically citing issues with AI powered search, AI recommendations feeling too generic and AI recommendations showing items that are out of stock.
A further 44% of consumers reported frustration with personalised experiences more broadly, including seeing the same recommendations repeatedly, being targeted with irrelevant or inaccurate product recommendations, and feeling that brands do not understand their preferences.
On the retailer side, 84% of respondents said planned improvements have been delayed or not delivered in the past year, with 40% citing budget pressures, 25% citing security requirements and 23% citing data fragmentation as key barriers. 40% of retailers also say they are now spending over 25% of their e-commerce budgets maintaining existing systems, leaving less capacity for innovation or customer experience improvements.
Meanwhile, a separate study published by Quickfire Digital earlier this year found that 52% of retailers say they are adopting further AI use to drive revenue, despite shoppers’ frustrations with the technology.
Martin Harper, Co Founder at Quickfire Digital, comments: “Right now, as retailers continue to invest heavily in AI and customer experience tools, most of the industry narrative we’re seeing is 'AI personalisation = good’. But our data is actually challenging that and revealing something no one is talking about; mid-market and enterprise brands are stunting their own growth because they refuse to abandon their legacy or custom-built tech stacks. And if retailers’ existing systems cannot support the pace of change they need to keep up with consumer expectations, AI may instead be actively putting consumers off.”
“It’s also interesting to see a significant amount of the ecommerce budget being spent simply to keep legacy and heavily customised platforms running. Retailers know they need to make meaningful improvements for their consumers, but this hidden ‘Growth Tax’ being paid by retailers who prioritise owning their infrastructure over commercial agility is trapping them. This is one of the biggest challenges facing retail businesses, because without the right infrastructure in place, even the best customer experience strategy and AI tools will struggle to deliver results.”
The research also reinforces the continued importance of the sector’s website, with 45% of consumers saying they prefer to discover products by searching directly on retailer websites. This compares to just 16% who prefer discovering products through social media and content creators, challenging common assumptions that social commerce or third-party platforms are replacing owned ecommerce environments.
“Despite all the industry noise around social commerce, marketplaces, AI shopping assistants, discovery on TikTok, Instagram, etc, consumers are still saying the retailer’s own website is the main and most trusted place they use to find and buy products. For retailers who've over-invested in social or marketplace channels at the expense of their own site, this insight is a real wake-up call,” Harper says.
2026 RTIH Innovation Awards
AI will be a key focus area at the 2026 RTIH Innovation Awards.
The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.
Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.
Check out our 2025 winners here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
