INDUSTRY // Retail. tech
Millions of investment at risk as 77 % of UK e-commerce retailers admit AI initiatives are falling short
Most UK e-commerce retailers are failing to get AI right despite consumers becoming increasingly accustomed to AI in online shopping, according to new research commissioned by e-commerce agency, Quickfire Digital.
The survey reveals that 77 % of retailers admit there are areas where their AI initiatives need improvement, while 27 % of consumers say they have not had any positive experiences with AI. million of that spend could be at risk of underperformance. If current trends continue, this figure could rise to £ 230 million by 2030.
Despite growing familiarity with AI in online shopping, friction remains a barrier. Thirty-seven percent of shoppers abandon purchases due to complicated checkouts, 19 % dislike being forced to use chatbots and high delivery fees remain the leading deterrent at 54 %.
Martin Harper, Co-founder of Quickfire, said:“ AI can transform e-commerce, 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.”
At the same time, around a third of consumers value automated returns and refund systems( 33 %), AI-generated product descriptions or images( 32 %) and AI-powered customer support( 31 %), signaling openness to long-term AI adoption if solutions are delivered effectively.
However, with the UK e-commerce sector investing an estimated £ 120 million in AI technologies in 2024, roughly £ 92
Retailers also recognize that AI still needs work. When asked which AI applications were underperforming, they cited AI-powered chatbots( 29 %), data analysis applications( 27 %), AI-driven marketing activities( 23 %) and content generation tools( 20 %).
The message to retailers is clear: AI experimentation is valuable only if it enhances convenience without removing human choice or transparency.
Despite the challenges, 23 % of retailers said all their AI initiatives had been successful, showing that effective AI can provide a competitive advantage.
Looking ahead, Harper said retailers should focus on four priorities to make AI investment count:
• Prioritise experience and retention: Consumers want seamless, reliable interactions and retailers are aligning strategies accordingly
• Fix loyalty execution: Programs must be omnichannel and personalised, not purely points-based
• Rethink AI in service: Chatbots and surface-level AI are failing; opportunities lie in deeper analytics and customer insight tools
• Back to basics: Even as AI scales, checkout, payments and trust remain decisive for success
Harper added:“ 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.” p
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