Artificial intelligence (AI) is rapidly transforming the retail landscape in the UK, with retailers increasingly adopting AI-powered solutions to enhance efficiency and personalisation across various aspects of the shopping experience.
As customers encounter AI-driven tools – from product discovery and dynamic pricing to customer service and automated checkout – the importance of understanding their perceptions and experiences has never been more critical.
A new study by 4imprint, which surveyed more than 1000 consumers about their shopping habits, sheds light on these dynamics.
This market report explores at length the current state of AI adoption in UK retail, consumer attitudes toward AI technologies, and future trends that could reshape the sector.
It provides a comprehensive analysis of the findings from the independent research, highlighting key trends, consumer insights, and the implications for the future of retail.
Key Findings
Awareness and Usage of AI in Retail
Many UK shoppers are interacting with AI-powered tools without necessarily realising it.
The study revealed that chatbots are the most widely recognised AI tool, with nearly half (47%) of respondents reporting their use for customer service queries and assistance.
Personalised recommendations, another popular feature, were utilised by more than 1 in 4 (26%) shoppers, while automated checkout systems were reported by more than 1 in 5 (21%).
Interestingly, 17% of respondents have engaged with smart shopping carts, which enhance the shopping experience. Despite the prevalence of these technologies, some consumers (24%) indicated they had not used any of the listed AI features, reflecting a gap in awareness or engagement with AI technologies. However, 59% said they have noticed that pricing and promotions are aimed at them personally with 69% citing that they are happy ‘a computer’ could be deciding what deals or promotions to offer.
While the integration of AI in retail is on the rise, not all shoppers are aware of its role in the technologies they use. Approximately 31% of respondents did not realise that many retail technologies, such as chatbots, personalised discount offers, or automated checkouts, are powered by AI. This means that while 69% of consumers are becoming increasingly knowledgeable about AI integration in their retail experiences, there is still an opportunity for retailers to educate customers about the technologies enhancing their shopping experiences.
Frequency of AI Feature Usage
The frequency with which shoppers use AI features in retail varies widely. Almost a quarter (24%) of respondents reported that they ‘always’ use AI features while shopping, while 35% indicated they do so ‘sometimes.’
On the other hand, a combined 23% of respondents reported using AI features either ‘rarely’ or ‘never,’ indicating that there is still some resistance or unfamiliarity with AI tools among certain consumer segments. This variance highlights the potential for retailers to promote the benefits of AI more effectively, encouraging greater adoption among hesitant customers.
Most Useful AI Features
When asked which AI features were most useful, chatbots emerged as the top choice, with respondents highlighting their utility in facilitating communication with retailers and addressing customer service queries.
AI product finders were also recognised as particularly valuable, with respondents identifying them as helpful tools. Automated checkout systems and personalised recommendations are also valued by shoppers. However, it is notable that 29% of respondents felt that none of the listed AI features were particularly useful, indicating that AI solutions may not yet fully meet the diverse needs of all shoppers.
AI’s Impact on the Shopping Experience
Personalisation and Convenience
AI has been widely recognised for its ability to deliver personalised experiences and enhance convenience in shopping. AI-powered product finders and recommendation systems are becoming increasingly popular, helping shoppers discover products that align with their preferences and needs. The survey showed that 26% of respondents had utilised personalised recommendations, and a further 21% found AI product finders to be among the most useful tools during their shopping experience.
Moreover, personalised discount offers represent another significant benefit of AI in retail. Approximately 27% of respondents have used personalised promotions driven by AI, further demonstrating the technology’s impact on enhancing customer satisfaction.
The study also explored whether shoppers felt they had benefited financially from these personalised promotions, revealing that over half (53%) of respondents believed they had saved money as a result. This suggests that AI-driven personalisation not only improves the shopping experience but also fosters loyalty by delivering real, tangible value to customers.
As consumers increasingly expect tailored offers and promotions that align with their interests, it’s noteworthy that respondents reported noticing that pricing and promotions seemed specifically targeted to them. This alignment with customer preferences enhances their overall shopping experience and reinforces the effectiveness of AI-driven marketing strategies.
Efficiency in Retail Operations
AI is also making significant strides in improving operational efficiency within the retail sector. Automated checkout systems, for instance, were utilised by 21% of respondents and considered useful by 19%. These systems not only reduce wait times but also provide a seamless checkout experience, minimising the friction often associated with traditional retail transactions.
Additionally, chatbots, used by 47% of respondents, enhance customer service by offering immediate assistance, helping customers find information, and resolving issues without human intervention.
The transformative impact of AI extends beyond traditional shopping experiences. Tools such as AI deal finders, video explainers, and virtual try-ons are revolutionising how consumers shop, creating more engaging, informative, and interactive experiences. For example, video explainers were used by 13% of respondents, while 15% engaged with virtual try-ons, highlighting the diverse range of AI applications that enhance customer engagement and satisfaction.
Consumer Satisfaction and Trust in AI
Satisfaction with AI Accuracy
While AI offers many benefits, customer satisfaction with the accuracy of AI-generated recommendations remains mixed. Interestingly, whopping 96% of respondents explained that they have never had a negative experience with AI while shopping!
However, according to the survey results, only 10% of respondents reported being ‘very satisfied’ with the accuracy of AI recommendations, while 39% expressed general satisfaction. A notable 42% of consumers remained neutral regarding their experiences, suggesting that while some shoppers appreciate the technology’s potential, others may have reservations. This ambivalence underscores an opportunity for retailers to refine AI algorithms to better align with consumer preferences, thereby enhancing satisfaction and trust.
Despite these mixed feelings, many consumers are willing to recommend AI-powered shopping features to others. A total of 66% of respondents indicated they were either ‘very likely’ (33%) or ‘likely’ (33%) to recommend AI-powered shopping tools, reflecting a generally optimistic outlook on the value AI adds to the retail experience. This enthusiasm, even amidst concerns about AI accuracy, indicates a strong foundation for future AI adoption as retailers continue to innovate and improve their offerings.
Concerns About AI in Retail
While the benefits of AI are clear, consumers have also expressed several concerns regarding its use in retail. The most prominent issue, shared by 49% of respondents, is the perceived lack of human touch in AI-driven interactions. Privacy concerns ranked closely behind, with 44% of shoppers worried about how their data is being used by AI systems.
Other concerns include communication issues (41%) and the potential for AI to misunderstand human quirks (39%). These findings highlight the necessity for retailers to be transparent about their use of AI and customer data and to address concerns regarding the limitations of AI in replicating human interaction.
AI and Human Interaction: Striking the Right Balance
Importance of Human Involvement
One of the key themes emerging from the study is the ongoing importance of human interaction in retail. While AI can enhance efficiency and personalisation, shoppers continue to value the human touch.
Notably, 69% of respondents expressed comfort with computers deciding what deals or promotions to offer, yet 31% indicated a preference for human involvement in these decisions. When asked about the importance of human interaction in general, 43% deemed it ‘important’ and a further 26% considered it ‘very important.’ This sentiment is reinforced by the fact that 80% of respondents believe that humans will always play a role in the shopping experience.
The expectations for exclusive brands are particularly interesting; a significant 84% of respondents agree that premium brands should employ more human staff to deliver better service. This suggests that while AI can improve operational efficiency in mass-market retail environments, high-end and luxury brands may need to rely more on human staff to provide personalised, high-touch services.
Future of AI in Retail: Opportunities and Challenges
Future Expectations for AI Innovations
As AI continues to evolve, consumers have high expectations for the future of AI in retail. Shoppers are looking forward to further innovations that will enhance personalization, convenience, and efficiency. The demand for AI solutions that can better understand individual preferences and deliver a seamless shopping experience is anticipated to grow significantly.
Consumers are particularly enthusiastic about advancements in AI tools such as virtual try-ons, AI-powered customer service hotlines, and voice-activated shopping assistants. Retailers that can successfully integrate these advanced AI technologies into their offerings will likely gain a competitive advantage in terms of customer satisfaction and loyalty. The expectation for improved personalization through AI indicates that consumers are increasingly recognizing its potential to create more meaningful shopping experiences.
Addressing Consumer Concerns
To fully capitalise on AI’s potential, retailers must address the concerns shoppers have about AI technologies. Privacy remains a pressing issue, with nearly half of respondents (44%) expressing apprehension regarding data protection. Retailers will need to prioritise transparency and security when handling customer data to build trust and ensure compliance with data protection regulations.
Another challenge is ensuring that AI systems can effectively replicate or enhance human-like interactions. With 49% of respondents citing the lack of human touch as a concern, retailers must carefully consider how to integrate AI into customer service without sacrificing the personalised and empathetic interactions that many shoppers still value.
Finally …
This research by 4imprint underscores the growing role of AI in UK retail, with consumers recognising the benefits of AI-driven personalisation, convenience, and efficiency. AI technologies such as chatbots, product finders, and personalised recommendations are becoming integral to the shopping experience, helping retailers deliver more tailored and seamless interactions with their customers. The evidence suggesting that more than half of respondents have benefited from personalised promotions underscores AI’s value in enhancing customer loyalty and satisfaction.
However, the findings also reveal that shoppers continue to place a high value on human interaction, particularly in complex or high-end retail environments. Retailers must strike a balance between leveraging AI to improve efficiency and personalisation while maintaining the human touch that consumers appreciate. As AI continues to evolve, there are significant opportunities for further innovation in retail.
By addressing concerns regarding privacy, communication, and the limitations of AI in replicating human behaviour, retailers can build greater trust and acceptance of AI-powered solutions. The future of AI in UK retail looks promising, with the potential to revolutionise the shopping experience while ensuring that both technology and human interaction play complementary roles in delivering exceptional customer experiences.
