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AI and retail, two years on – what have we learned?

Bira CEO Andrew Goodacre surveys the damage done to retail so far in 2025.

AI tools help independent retailers optimize stock levels and reduce waste.

Independent retailers are now embracing artificial intelligence to compete more effectively

Photo: iStock

Two years ago, I wrote about artificial intelligence (AI) and its potential impact on independent retail. Looking back, even the most optimistic predictions have been surpassed by the speed and scale of AI adoption in our sector.

What began as a buzzword has evolved into an essential business tool. Independent retailers who initially viewed AI with scepticism are now embracing it to compete more effectively in an increasingly digital marketplace.


The most dramatic change has been in customer interaction. AI-powered chatbots have evolved from simple query handlers to sophisticated virtual assistants. Many of our members report that customers often now can't distinguish between AI and human.

Inventory management has been another success story. AI systems now predict seasonal demand with remarkable accuracy, helping independent retailers optimise stock levels and reduce waste.

Social media management, once a time-consuming task for independent retailers, has been transformed by AI tools. Through our partnership with Maybe, we've seen members dramatically improve their digital presence without increasing their workload. The AI now understands local market nuances and can generate content that resonates.

Perhaps the most significant development has been in data analysis. AI systems now provide independent retailers with insights previously available only to major chains. From customer behaviour patterns to pricing optimisation, from store layouts to opening hours, these tools have levelled the playing field considerably.

Andrew GoodacreAndrew Goodacre

However, the rise of AI hasn't been without challenges. Privacy concerns and data security remain important considerations, and we've learned that AI works best when complementing human expertise rather than replacing it.

Looking ahead, we're seeing exciting developments in augmented reality and personalised shopping experiences powered by AI. The technology is becoming more sophisticated in understanding local market conditions and community needs – crucial for independent retailers who pride themselves on their community connections.

For those who haven't yet embraced AI, the message is clear - this isn't a passing trend. Through Bira's partnerships and resources, we're committed to helping our members navigate this technological transformation.

The past two years have shown us that AI is empowering independent retailers to focus on what they do best: providing personal service and building community relationships. As we move forward, the challenge is how to use AI most effectively.

You also can listen to one of our recent podcasts about AI - search High Street Matters on your streaming platform to find out more.