Britain’s small retail businesses are quietly leading an AI revolution to save time and money with a third already using it every day, finds a recent survey.
A poll of 300 small retailers, found 83 per cent have adopted the tech with the most common uses being marketing support (33 per cent), general research tasks (26 per cent) and handling customer service queries (23 per cent).
During a typical day, those polled estimate they save nearly two-and-a-quarter hours through the use of AI, more than 13 hours a week.
73 per cent also believe the tech saves their business money - those using it report average savings of £79 per day, adding up to nearly £20,000 a year for the third of retailers who use it daily.
A fifth (21 per cent) of shop owners who’ve implemented AI believe it has the potential to save struggling high streets and for 19 per cent the use of AI has led to an increase in their sales.
The push to adopt AI tools comes amid the ongoing cost of living crisis and the continued struggles facing high streets. Nearly half (41 per cent) of small retailers say rising business costs are their biggest challenge, followed by reduced consumer spending (39 per cent) and intense competition from eCommerce giants and major retail chains (31 per cent).
In response, a third (33%) are turning to AI to save time and automate manual tasks. Others see it as a way to boost overall efficiency (30%) and enhance customer engagement (24 per cent).
Interestingly, 15 per cent see AI as a way to future-proof their business against industry changes and avoid falling behind other retailers - both small and large.
However - not all independent retailers are as convinced by the power of AI.
According to the research, commissioned by global wholesale marketplace Faire, one in 10 small businesses have ‘no interest’ in adopting AI - with a lack of understanding, worries over cost, and lack of trust among the biggest reasons.
One in 10 don't really understand the benefits of it, and the same number consider its use as ‘cheating’. Others fear becoming too dependent on AI (14 per cent) and worry it lacks the ‘personal touch’ (18 per cent).
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.”
“We’re also seeing some resistance to AI, particularly among shop owners who don’t fully understand or trust the technology, or worry about losing many of the things that make independent shops so unique and important to our local communities.
"Of course, not every shop is there yet. Some are still wary, and that’s understandable because this tech is new. But the ones leaning in are showing how adaptable and innovative small businesses can be.
"I’m confident we’ll see even more creative uses of AI that allow retailers and small business owners to focus on what they do best: curating brilliant products and creating memorable customer experiences.”
In general, 11 per cent aren’t confident when it comes to adopting new business tools or software.
Faire customer Nicola Eyre, owner of independent store Cissy Wears, said, “I’m reluctant to fully embrace AI because 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. 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.
"There are environmental concerns too and I also have questions around data ethics—who owns the information these tools are trained on, and how is it being used?”
The data, conducted by OnePoll.com, also shows 74 per cent of independent retailers want more support and advice on the benefits of this tech.
With 48 per cent per worried they might get left behind if they don't adopt AI soon.
Top 10 reasons SMEs have not adopted AI tech:
1. No need for AI in my business
2. Cost of AI tools
3. I don’t trust AI / I’m worried AI will make errors
4. Lack of time to research and implement AI tools
5. AI feels too complex or technical to use
6. Concerned about AI-generated content being inauthentic or low quality
7. Just not got round to it yet
8. I see the use of AI as cheating
9. Don’t really understand what it is, can do, or how to use it
10. Fear that AI could introduce cybersecurity or data privacy risks
