According to new research from monday.com, the global software company, a significant 99% of UK retail decision-makers report some form of AI expertise in their business. Moreover, 88% believe AI grants local retailers a competitive edge against global retail powerhouses.
What was once exclusively advantageous for tech-first enterprises is now retail's great equaliser. AI is enabling local retailers to offer dynamic pricing, personalised marketing, and improved supply chain visibility, vital to meeting customer expectations and rapidly adapting to changes.
AI has become mainstream in UK retail, with nearly all respondents affirming its use in decision making. Over half (61%) have established AI leadership roles and teams within their organisations.
However, retailers maintain a balance between AI and human oversight:
- 92% of decision-makers say AI is not yet autonomously making key business decisions.
- A third (36%) report AI provides insights, but humans retain the final decision-making authority.
- Almost half (49%) agree that AI isn't ready to manage the customer journey end to end.
The conversation around AI agents often looks to the future; however, in UK retail, these systems already influence key functions and deliver impact:
- 90% of retailers are exploring AI agents, with a third in the implementation phase.
- 55% utilise AI agents for customer service, such as chatbots.
- 48% have AI supporting marketing and content creation.
- 51% expect AI to manage most customer interactions within five years.
A path forward is emerging despite challenges regarding output quality, data privacy, and system integration. Transparency is highlighted, with 57% agreeing that consumers will likely remain loyal to brands open about AI operations.
Adopting AI isn't without obstacles—97% face at least one, with cost and employee resistance being notable barriers.
Nevertheless, retailers aren't questioning AI's place in their strategy; they're ensuring it works effectively, yielding undeniable benefits:
- 74% highlight AI's potential in delivering personalised in-store and online experiences.
- 73% observe generative AI handling most basic customer requests, freeing reps for more valuable tasks.
- 72% foresee AI enhancing supply-chain transparency and resource allocation.
Ben Barnett, Regional VP for UKI at monday.com, stated, "AI is no longer a future investment for UK retailers - it's something they're using right now to stay competitive..." Successful teams use AI to complement existing systems, reducing friction and supporting their workload.
The research was done in partnership with CensusWide and surveyed 500 UK retail leaders in June 2025. It also surveyed retail leaders in Australia, New Zealand, the US and Singapore.
