A poll of 300 small retailers found 83% have started using artificial intelligence, with a third using it on a daily basis
A study has shown that small retail businesses in the UK are turning to artificial intelligence (AI) to save time and money, although not everyone is as convinced. The most frequent uses include marketing support (33%), general research tasks (26%), and customer service queries (23%).
A survey of 300 small retailers revealed that 83% have begun using AI, with a third utilising it daily. On an average day, those surveyed estimated they save over two hours through the use of AI. More significantly, 73% believe that AI saves their business money, reporting an average saving of £79 per day – equating to nearly £20,000 annually for the third of retailers who use it daily.
The research, commissioned by global wholesale marketplace Faire, found that 19% reported an increase in sales due to AI usage. Interestingly, 15% view AI as a means to future-proof their business against industry changes and prevent falling behind other retailers, both large and small.
Four in ten small retailers cited rising business costs as their biggest challenge, suggesting that AI could help reduce costs and potentially save struggling high streets. Some also believe it can improve overall efficiency (30%) and enhance customer engagement (24%).
One small business that has embraced the AI revolution is Happy & Glorious in Canterbury. Its owner and shopkeeper, Kate Tompsett, shared: “Right now, it’s letting me juggle a massive website overhaul at the same time as I ramp up my customer emails.”
“I mostly use it to sense-check and proofread marketing copy,” she added, “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 convinced of AI’s benefits. The research revealed that one in 10 small businesses have ‘no interest’ in adopting it. One in ten view the use of AI as ‘cheating’, while others fear becoming overly reliant on it.
Many also believe it lacks the ‘personal touch’, something Nicola Eyre, owner of independent store Cissy Wears and a Faire customer, is concerned about. “I’ve worked hard to build a brand with a clear voice and creative identity, and I’m not ready to hand that over to an algorithm,” she said.
“It often feels at odds with the values that guide my business. Authenticity, human connection, and thoughtful storytelling all risk being lost when too much is automated.”
The study revealed that 11% of small retailers lack confidence in adopting new business tools or software. Furthermore, 74% of them wish there was better support and advice on the benefits of embracing the new technology. Some 48% even fear they might fall behind if they don’t embrace AI soon.
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.
TOP 10 REASONS FOR NOT USING AI:
- No need for AI in their business
- Cost of AI tools
- Don’t trust AI / worries AI will make errors
- Lack of time to research and implement AI tools
- Consider AI too complex or technical to use
- Concerns about AI-generated content being inauthentic or low quality
- Just not got round to it yet
- See the use of AI as cheating
- Don’t really understand what it is, can do, or how to use it
- Fears AI could introduce cybersecurity or data privacy risks