Faire, which surveyed 300 independent retailers, found that 83% have begun adopting artificial intelligence and a third were now making use of it every single day. However, one in 10 small shop owners said they still have ‘no interest’ in utilising AI, with a lack of understanding, worries over cost, and lack of trust among the biggest barriers.
Britain’s small retail businesses are quietly leading an AI revolution to save time and money, with a third already using it every day. A poll of 300 small retailers found 83% have adopted the tech, with the most common uses being marketing support (33%), general research tasks (26%), and handling customer service queries (23%).
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. Furthermore, 73% 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%) of shop owners who’ve implemented AI believe it has the potential to save struggling high streets and for 19% the use of AI has led to an increase in 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%) of small retailers say rising business costs are their biggest challenge, followed by reduced consumer spending (39%) and intense competition from ecommerce giants and major retail chains (31%).
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 %). Interestingly, 15% see AI as a way to future-proof their business against industry changes and avoid falling behind other retailers – both small and large.
One example of a small business capitalising on the AI revolution is Happy & Glorious in Canterbury. Owner and shopkeeper Kate Tompsett says: “AI is a real time-saver for small business owners like me. 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, 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 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%) and worry it lacks the ‘personal touch’ (18%).
Charlotte Broadbent, UK general manager at Faire, says: “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% aren’t confident when it comes to adopting new business tools or software.
Faire customer Nicola Eyre, owner of independent family concept store Cissy Wears, says: “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% of independent retailers want more support and advice on the benefits of this tech, with 48% per worried they might get left behind if they don’t adopt AI soon.