Most UK eCommerce retailers are struggling to effectively implement artificial intelligence, placing an estimated GBP £92 million in investment at risk this year, according to new findings from Quickfire Digital.
Implementation gaps
The research shows that 77% of eCommerce retailers acknowledge shortcomings in their AI initiatives. Despite widespread adoption in online shopping, many retailers are not achieving expected outcomes from their technology investments.
Martin Harper, Co-founder of Quickfire Digital, said:
"AI can transform eCommerce, 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."
Investment risk
The UK eCommerce sector has invested approximately GBP £120 million in AI technologies in 2024. Of this amount, Quickfire Digital estimates around GBP £92 million could underperform based on current retailer feedback. If current trends continue, the annual risk could rise to GBP £230 million by 2030.
Mixed consumer response
Consumer experience with AI in eCommerce is also divided. Over a quarter of UK consumers, 27%, report that they have had no positive experiences with AI when shopping online. Nevertheless, there is an appetite for effective AI: around a third say they value automated returns and refund systems (33%), AI-generated product content such as descriptions and images (32%), and AI-powered customer support (31%).
Frustrations remain high for many shoppers. Complicated online checkouts cause 37% of consumers to abandon purchases, while 19% are put off by the need to interact with chatbots. High delivery fees are the most cited deterrent, mentioned by 54% of respondents.
Retailer challenges
Feedback from retailers identifies specific areas where AI tools are not delivering as anticipated. Nearly a third cite underperformance from AI-powered chatbots (29%), followed by data analysis applications (27%), AI-driven marketing activities (23%), and content generation tools (20%).
The data suggests that while retailers see AI as a means to improve efficiency and customer engagement, expectations are often unmet in practice.
Opportunities ahead
Despite these challenges, 23% of retailers report that all of their AI initiatives have been successful. This shows there is scope for positive impact when AI is well implemented.
Harper has outlined four priorities for eCommerce retailers to ensure that AI investment delivers value: prioritise seamless customer experience and retention, build loyalty programmes that are personalised and omnichannel, focus on deeper analytics and insight tools rather than basic AI functions, and address fundamental elements such as checkout, payments, and trust.
"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," said Harper.
