Artificial intelligence is poised to transform £3.7 billion of UK retail marketing and ecommerce spend by the end of the decade, as the technology becomes increasingly embedded across customer engagement and commercial decision-making, according to new research from Voyado and Retail Economics.
The report finds that 39 per cent of total marketing and ecommerce expenditure will fall into areas exposed to AI-driven disruption by 2030, as retailers adopt tools that enhance personalisation, analytics, campaign execution and product discovery.
Currently, around a third (32 per cent) of tasks within these functions are already exposed to AI support, augmentation or partial automation. While most roles are expected to remain human-led, AI is increasingly being deployed to support decision-making, automate repetitive processes and enable continuous optimisation at scale.
Data and analytics functions are identified as among the most immediately impacted, reflecting AI’s strengths in pattern recognition, forecasting and optimisation. Personalisation and customer experience execution are also highly exposed, as retailers look to deliver more relevant, real-time engagement across multiple channels.
Despite lower levels of direct automation, brand and creative activities still represent a significant share of exposed spend due to their scale within overall marketing budgets.
Shift from experimentation to operational use
The study, spanning the UK and key European markets, suggests the industry is progressing along an AI integration journey shaped by data infrastructure, internal capabilities and access to tools such as AI agents.
While 95 per cent of retailers have trialled AI tools, often beginning with generative AI and large language models in 2023, many remain in early stages. Around one in four are still exploring or scaling pilot initiatives, constrained by data quality, skills gaps and governance concerns.
In contrast, 45.3 per cent of retailers have reached an operational stage, embedding AI into multiple workflows, while a further quarter report strategic integration, where AI influences planning and execution across functions.
However, only 5 per cent of retailers say AI is currently delivering clear, scalable return on investment. Most expect meaningful commercial impact to emerge within the next 12 to 18 months, with clearer returns anticipated within two years.
Narrowing window for action
The findings point to a limited window for retailers to build AI capabilities before risking competitive disadvantage. Many believe delaying investment beyond the next two years could leave them lagging as AI shifts from experimentation to operational necessity.
With rising acquisition costs and intensifying competition, one in four retailers are prioritising personalisation as a core strategy to retain and grow their customer base.
Yet barriers remain significant. Three quarters of UK retailers cite cultural resistance and governance concerns as key obstacles, while two thirds highlight a lack of internal expertise.
Felix Kruth, chief product officer at Voyado, said the industry is still at an early stage of AI maturity, with greater value expected from agentic AI built on strong data foundations.
“In the race to demonstrate AI progress, it is easy to focus on what is visible: new interfaces, chatbots, and features. But without the right data foundation and context, the impact simply does not materialise. The real value in retail is created by AI working in the background – prioritising the right customers, optimising decisions and ensuring the right thing happens at the right moment,” Kruth said.
Richard Lim, chief executive at Retail Economics, added that the next two years will mark a critical inflection point.
“As AI transforms retail tasks, it is reshaping how marketing and ecommerce spend is executed. The retailers that succeed will be those building the right data foundations, skills and operating models now, as AI becomes a core requirement for competing effectively in retail,” he said.