99% of UK retailers now have in-house AI teams despite being cautious about full deployment

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.