According to new research from monday.com, the global software company that transforms how businesses run, almost all UK retail decision-makers (99%) report some form of AI expertise in their business, while 88% believe AI helps local retailers compete more effectively with global retail powerhouses.
What was once a competitive edge for tech-first enterprises is now becoming retail’s great equaliser. From dynamic pricing and personalised marketing to smarter supply chain visibility, AI is helping local retailers meet rising customer expectations and respond quickly to change.
AI is embedded in retail strategy, but people are still in charge
The data shows that AI is now fully mainstream in UK retail, with almost all respondents (99%) stating their business uses it for decision making. Many have gone further: 61% say their company has dedicated AI leadership or teams in place, including Chief AI Officers.
But what stands out is the balance retailers strike between AI and human oversight:
92% of UK retail decision-makers say AI is not yet making key business decisions autonomously
Its role remains largely supportive: over a third (36%) say AI provides insights, but humans make the final decisions
Caution extends to customer experience – nearly half (49%) agree that AI is not yet ready to manage the customer journey from end to end
AI agents are already on the front line – and changing how work gets done
While the conversation around AI agents often focuses on the future, the reality in UK retail is that these systems are already live across key functions and delivering impact:
90% of UK retail decision-makers say their business is actively exploring AI agents, with a third already in the implementation phase
55% are using AI agents for customer service (e.g. chatbots)
49% are applying them to boost operational efficiency
48% say they support marketing and content creation
51% expect AI agents to manage most customer interactions within five years
That outlook comes with both operational and reputational considerations. Among the top challenges in deploying AI agents, 54% cite concerns about output quality and consistency across systems, while 45% point to privacy issues – particularly in social commerce.
Integration and customer trust are also front of mind: 44% say integration with current systems is a key challenge, and 42% worry that AI agents could alienate customers. Still, the data suggests a clear path forward – 57% agree that consumers will be more loyal to brands that are transparent about how AI agents operate, pointing to openness as a critical trust-builder.
Anxieties remain, but benefits are clear if complexity is addressed
For all the momentum, the reality of integrating AI into retail operations is still relatively tricky. 97% of UK retail decision-makers say their business faced at least one obstacle when adopting AI tools. 45% cite cost as a barrier, while 40% report employee resistance to change.
Despite these hurdles, most retailers aren’t questioning whether AI belongs in their strategy – they’re focused on making it work. And when it does, the benefits are hard to ignore:
74% say AI will help deliver more personalised in-store and online experiences through tailored recommendations
73% say generative AI and chatbots now handle the majority of basic customer requests, giving online service reps more time for high-value interactions
72% believe AI will improve supply-chain transparency and resource allocation
Ben Barnett, Regional VP for UKI at monday.com, said: “AI is no longer a future investment for UK retailers – it’s something they’re using right now to stay competitive in a high-pressure sector. What stands out in this data is how national and regional brands are being thoughtful – not just piling on new tools, but using AI to streamline what already exists and support the people doing the work.
“At monday.com, we see that every day – the most successful teams aren’t using the most tech, they’re using it in the clearest, most integrated way. AI works best when it’s embedded into the systems teams already use – when it reduces friction, rather than creating more.”
