Nearly all UK retailers now have dedicated AI expertise in-house, with 61% establishing specialized AI leadership teams including Chief AI Officers, according to new research from Monday.com, a workplace management platform. However, despite this widespread adoption, retailers remain cautious about fully automating customer interactions, with 49% believing AI tools aren’t yet ready to manage complete customer journeys independently.
Why this matters: The retail sector is rapidly building AI capabilities while maintaining human oversight for critical decisions.
- 99% of UK retail decision-makers report having AI expertise within their businesses.
- 97% of respondents faced at least one obstacle when adopting AI despite recognizing its benefits.
- 92% agree that AI isn’t yet making key business decisions autonomously.
Where AI is making an impact: Retailers are finding the most value in customer-facing and operational applications.
- Customer service leads AI implementation at 55% of retailers.
- Operational efficiency improvements follow at 49%.
- Marketing and content creation ranks third at 48%.
- One-third (36%) use AI primarily for insights, with humans making final decisions.
The challenges persist: Quality concerns and integration issues continue to create barriers for retail AI adoption.
- 54% cite output quality and consistency as primary concerns.
- Privacy issues, system integration difficulties, and costs also present ongoing challenges.
- “AI works best when it’s embedded into the systems teams already use – when it reduces friction, rather than creating more,” Monday.com UK&I Regional VP Ben Barnett explained.
Looking ahead: Retailers are cautiously optimistic about AI agents handling more autonomous tasks in the coming years.
- 90% of organizations are exploring AI agents that can take ownership of tasks independently.
- 51% believe AI agents could handle most customer interactions within five years.
- 73% already see generative AI and chatbots managing the majority of basic customer requests, freeing humans for complex and personalized matters.
What they’re saying: Industry experts emphasize the importance of strategic AI integration rather than technology for its own sake.
- “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,” Barnett noted.
- “The most successful teams aren’t using the most tech, they’re using it in the clearest, most integrated way,” he concluded.
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