Almost all UK retail decision-makers use some form of AI expertise in their business, while most (88 per cent) believe AI helps local retailers compete more effectively with global retail powerhouses, states a recently released report.
According to new research from monday.com, AI is now fully mainstream in UK retail, with almost all respondents (99 per cent) stating their business uses it for decision making. Many have gone further, as 61 per cent say their company has dedicated AI leadership or teams in place, including Chief AI Officers.
The report adds that 92 per cent of UK retail decision-makers say AI is not yet making key business decisions autonomously while over a third (36 per cent) say AI provides insights, but humans make the final decisions.
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 per cent of UK retail decision-makers say their business is actively exploring AI agents, with a third already in the implementation phase
- 55 per cent are using AI agents for customer service (e.g. chatbots)
- 49 per cent are applying them to boost operational efficiency
- 48 per cent say they support marketing and content creation
- 51 per cent 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 per cent cite concerns about output quality and consistency across systems, while 45 per cent point to privacy issues, particularly in social commerce.
The report further states that for 44 per cent retailers, integration with current systems is a key challenge, while 42 per cent worry that AI agents could alienate customers. 57 per cent feel that consumers will be more loyal to brands that are transparent about how AI agents operate, pointing to openness as a critical trust-builder.
Despite the hurdles, most retailers aren’t questioning whether AI belongs in their strategy but are focused on making it work.
- 74 per cent say AI will help deliver more personalised in-store and online experiences through tailored recommendations
- 73 per cent say generative AI and chatbots now handle the majority of basic customer requests, giving online service reps more time for high-value interactions
- 72 per cent 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.”