Editor's View: “Left On The Shelf?” How UK Retail Risks Missing The AI Wave

The UK is increasingly sounding the alarm: Businesses here, especially smaller ones, are falling behind in adopting artificial intelligence, and that includes retailers. Debbie Weinstein, President of Google Europe, recently cautioned that the productivity gains unlocked by AI are not being fully realised in Britain, in part because uptake is patchy — and the retail sector is no exception.

For UK retail, this isn’t a niche concern — it’s existential!

Why AI Is A Retail Game-Changer

Across the world, retailers are deploying AI to sharpen operations, personalise customer experiences, and optimise supply chains. In the UK, AI is already transforming the sector in several key ways:

• Demand forecasting and inventory optimisation use AI to reduce overstock, cut waste and avoid stockouts.

  
  

• Personalised marketing and recommendation engines nudge shoppers toward the right products instead of sending generic offers.

  
  

• Chatbots and virtual assistants handle routine customer queries, freeing up staff to focus on higher-value interactions.

  
  

• Visual search and smart merchandising help customers find items through images and enable stores to adjust displays semi-automatically.

These applications are commonplace internationally, but if the UK doesn’t accelerate adoption, its retailers risk losing ground in a fiercely competitive global marketplace.

The UK’s AI Adoption Gap

Research suggests the UK could unlock up to £400 billion in economic value from AI by 2030 — but only if businesses adopt and embed these tools at scale.

In pilot programmes, just a few hours of hands-on training doubled daily usage of AI tools, and these productivity gains persisted months later. For retail teams, that kind of momentum can make the difference between theory and tangible business impact.

Yet adoption remains uneven. Two-thirds of UK workers have never used generative AI at work, and uptake is particularly low among older employees. Only around a third of UK companies currently provide AI training for staff, leaving large swathes of the workforce unprepared for an increasingly digital future.

For retailers, those numbers matter. Front-line staff, store managers, merchandisers and logistics teams all stand to benefit from AI-driven efficiencies — but only if they have access to training and confidence to use the technology.

Retail In Practice: Small UK Shops, Big Potential

Government studies show that most UK AI businesses expect revenue growth in the next year, with over half predicting growth of 50 per cent or more. The appetite is clearly there. The challenge for retail is converting that optimism into real-world deployment.

For example:

• A regional chain could use AI to predict which products will trend in particular postcodes, tailoring stock accordingly.

• A boutique grocer might deploy chatbots to answer customer queries on stock availability or allergens.

• A multi-store chain could integrate AI into its logistics to optimise deliveries and reduce returns.

These are not futuristic concepts — they’re happening now. But smaller retailers, lacking in-house expertise or big-tech budgets, often struggle to make the leap.

Google, Government & The Push To Upskill

To help close the gap, Google has teamed up with the Department for Business and Trade and NatWest to deliver “AI Works for Business” — a series of free workshops across the UK in cities such as Manchester, Leeds, Edinburgh and Cardiff. The aim is to give SMEs hands-on experience and demonstrate that even a few hours of training can make a measurable difference.

The UK government has publicly supported these initiatives, noting that AI could play a central role in boosting national productivity. Google has also called for the creation of a National Skills Service, easier data access for innovators, and investment in shared AI infrastructure.

What Retailers Should Do Now

• Start small. Begin with focused pilot projects such as demand forecasting or customer service automation.

• Invest in people. Even brief, practical training can significantly increase adoption and confidence.

• Collaborate. Industry groups and retail consortia can share best practice and resources.

• Push for better infrastructure. Data access and cloud support are essential for smaller retailers.

• Build trust. Transparency around how AI is used will help address public scepticism and ensure customers feel comfortable with the technology.

The Upside — Why Retail Can Lead The Charge

If British retailers embrace AI thoughtfully, the rewards are enormous:

• Higher margins through waste reduction, dynamic pricing and smarter promotions.

• Stronger customer loyalty via personalisation and improved service.

• Greater resilience against supply chain shocks and seasonal fluctuations.

Across global markets, retail is already at the forefront of AI innovation. For the UK, this is a defining moment. The industry can either treat AI as an optional extra — or recognise it as the foundation for the next era of retail success.

Retailers that act now will lead. Those that hesitate risk being left on the shelf!