While nearly all UK retail decision-makers are now using Artificial Intelligence (AI) in some form, new research from PXP, the omnichannel global payment platform, reveals a significant level of consumer caution, with 37 per cent of people saying they would not use AI shopping tools at all. This reluctance underscores a critical challenge for the sector: how to balance AI-driven efficiency with the human connection that builds trust.
PXP’s new report, Retail in the Age of AI: Why Humanity Should Be at the Heart of Your Business Strategy, explores this ‘AI Paradox’, noting that consumer willingness to engage with the technology varies significantly depending on the application.
Where consumers draw the line
The research highlights a clear divide in consumer acceptance of AI tools. Shoppers are highly selective about where they are willing to surrender control to automated systems.
Among the respondents who are open to AI, the most appealing features include:
- Personalised product recommendations (18%)
- Price prediction tools (18%)
- Voice assistants (16%)
- Visual search (15%)
In contrast, interest in more advanced in-store technologies, such as AI chat assistants, smart mirrors, and virtual try-on kiosks, was notably lower, ranging between 11 and 14 per cent.
These findings contrast sharply with the internal adoption rates; recent research shows that nearly all UK retail decision-makers currently use AI, with 61 per cent creating dedicated AI leadership roles to oversee strategy and implementation.
Prioritising trust over automation
Adoption within the industry is being driven by necessity, including rising costs, labour shortages, and the intense competition forcing retailers to deliver highly personalised, seamless experiences. However, PXP stresses that technology alone cannot secure long-term loyalty.
Aaron Stephens, vice president of global retail at PXP, commented that retail is at a crossroads, with AI already powering pricing engines, predicting demand, and running customer service.
“Technology alone won’t win loyalty. Shoppers want smarter experiences, but not at the expense of trust or the human touch,” Stephens said. He added that PXP created the report to give retail leaders clear insights into what customers really think about AI and practical guidance on how to use it responsibly.
The report concludes that retailers must embrace innovation in a way that keeps customers front and centre, recommending a strategy that prioritises understanding preferences before rolling out new AI-driven experiences. PXP, which processes over €30billion annually, applies its expertise in payments, fraud prevention, and data analytics to help retailers navigate this “next big wave” of change.
