One in three British retailers using AI technology daily

Data from OnePoll shows that the UK’s small retailers are leading the AI revolution in a bid to save time and money, with a third using the technology daily.

The statistics, which polled 300 businesses, found 83% had adopted AI, with 33% per cent using it for marketing support, 26% for research tasks, and 23% for handling customer service enquiries.

During a typical day, those polled estimated they saved just over two hours through AI use – more than 13 hours per week.

Nearly three-quarters (73%) believe AI saves their business money (an average of £79 per day, adding up to thousands of pounds annual for those retailers using it daily).

Twenty-one per cent of shop owners who’ve implemented AI believe it has the potential to save struggling high streets, and for 19%, it has led to an increase in sales.

Kate Thompsett, owner of Happy & Glorious in Canterbury, said, “AI is a real time-saver for small business owners like me. Right now, it’s letting me juggle a massive website overhaul at the same time as I ramp up my customer emails.”

Kate adds that she mostly uses AI to ‘sense-check’ and proofread marketing copy. “But it’s also brilliant for rewriting product descriptions, coming up with snappy email subject lines, and even telling me the best time to post on social media. This is helping Happy & Glorious to grow at an otherwise challenging time and I’m sure it will boost future sales.”

However - not all independent retailers are as convinced by the power of AI. 

According to research commissioned by global wholesale marketplace Faire, one in 10 small businesses have ‘no interest’ in adopting AI - with a lack of understanding, worries over cost, and lack of trust among the biggest reasons.

One in 10 don’t really understand the benefits of it, and the same number consider its use as ‘cheating’. Others fear becoming too dependent on AI (14 per cent) and worry it lacks the ‘personal touch’ (18 per cent).

Charlotte Broadbent, UK general manager at Faire, said, “Despite tough economic conditions, many of the independent retailers we work with are embracing AI to save time, cut costs, and compete with bigger retailers. What’s exciting is that technology - and particularly some of the AI driven tools we offer our retailers - are helping to level the playing field, giving small businesses access to the same efficiencies and insights as much larger competitors.” 

Charlotte added Faire is seeing some resistance to AI amongst shop owners who don’t fully understand or trust the technology, or worry about losing many of the things that make independents so unique and important to their communities. “Of course, not every shop is there yet. Some are still wary, and that’s understandable because this tech is new. But the ones leaning in are showing how adaptable and innovative small businesses can be. I’m confident we’ll see even more creative uses of AI that allow retailers and small business owners to focus on what they do best: curating brilliant products and creating memorable customer experiences.”

The push to adopt AI tools comes amid the ongoing cost-of-living crisis and the continued struggles facing high streets. Nearly half (41%) of small retailers say rising business costs are their biggest challenge, followed by reduced consumer spending (39%) and intense competition from eCommerce giants and major retail chains (31%). 

In response, a third (33%) are turning to AI to save time and automate manual tasks. Others see it as a way to boost overall efficiency (30%) and enhance customer engagement (24 per cent). 

Interestingly, 15% see AI as a way to future-proof their business against industry changes and avoid falling behind other retailers - both small and large. The data also shows 74% of independent retailers want more support and advice on the benefits of this tech. 

While 48% are worried they might get left behind if they don’t adopt AI soon.