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 results, released today, reveal that 77% of retailers admit there are areas where their AI initiatives need work, while 27% of consumers say they haven’t had any positive experiences with AI at all.
At the same time, around a third of consumers value automated returns/refund systems (33%), AI-generated product descriptions or images (32%), and AI-powered customer support (31%) – signalling receptiveness to long-term AI adoption if experiences are delivered effectively.
However, with the UK e-commerce sector having invested an estimated £120 million in AI technologies in 2024, roughly £92 million of that spend could be at risk of underperformance – a figure rising to £230 million by 2030 if current trends continue.
Despite consumers becoming increasingly familiar with AI in online shopping, friction remains a barrier: 37% of shoppers abandon purchases due to complicated checkouts, 19% dislike being forced to use a chatbot, and high delivery fees remain the top deterrent (54%).
Retailers also know AI still has work to do. When asked which AI applications underperformed, they said AI-powered chatbots (29%), Data analysis applications (27%), AI-driven marketing activities (23%) and Content generation tools (20%).
It sends a clear message to retailers: AI experimentation is valuable, but only if it enhances convenience without replacing human choice or transparency.
Martin Harper, co-founder of Quickfire, commented: “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.”
Despite the challenges, 23% of retailers reported all AI initiatives had been successful, demonstrating 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 & Retention: Consumers want seamless, reliable interactions; retailers know this and are aligning strategies accordingly.
- Fix Loyalty Execution: Programmes must be omni-channel and personalised, not just points-based gimmicks.
- Rethink AI in Service: Chatbots and surface-level AI are failing; the opportunity lies in deeper analytics and customer insight tools.
- Back-to-Basics: Even as AI scales, checkout, payments, and trust remain decisive factors 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.”
