Despite 42% of retailers saying AI deployment improved sales, the largest businesses lag the furthest behind in executing AI personalisation
Mid-market retailers lead the AI execution race, with 58% having already fully implemented AI personalisation – x1.5 as many as smaller brands
15% of enterprise retailers which turnover of £1bn are yet to deploy any AI personalisation across pricing, offers or product recommendations
Abingdon, UK — Enterprise retailers are lagging behind mid-market and smaller brands when it comes to deploying AI for personalisation, according to data from global commerce technology leader, PMC, risking lost sales and longer-term loyalty.
Original research of over 100 senior retailers and brand leaders in its ‘Race To Unified Commerce’ report, produced in collaboration with Retail Economics, showed that, despite 42% of retailers reporting improved sales from AI deployments, a sixth (15%) of enterprise retail businesses have yet to roll out any AI personalisation.
This, the report suggests, means large retailers, who often operate with slimmer margins, risk lost revenue and loyalty opportunities – across sales, conversions and customer retention – that they can ill-afford to leave on the table. Half (50%) of retailers said conversion rates improved after executing AI personalisation, while 53% reported enhanced customer retention rates.
This AI personalisation lag isn’t confined to enterprise businesses alone, with only 46% of retailers having fully deployed AI personalisation, dropping to 36% among smaller firms, underlining the untapped potential across the board.
And this isn’t going unnoticed by shoppers; a separate poll revealed that 44% of UK consumers remain frustrated by current personalisation in their buying journeys, while a similar proportion (45%) expressed frustration at AI experiences, such as poor product recommendations.
The Race to Unified Commerce report showed that personalisation tools, such as AI-driven product recommendations, dynamic pricing and tailored promotions, deliver fast ROI and scalable impact. With AI personalisation proving the most effective when underpinned by centralised analytics and modular architecture, this reinforces the need for retailers to build strong and robust digital foundations.
“For the largest retailers in particular, the challenge isn’t necessarily access to AI or a lack of ambition,” Rich Lowe, CEO of PMC, commented. “It’s being able to operationalise it across complex technology estates – and personalisation is a good example of exactly where that matters. Retailers need to be able to connect customer and operational data and turn that insight into action consistently across channels.”
“As AI becomes embedded across more of the customer journey, the gap between retailers that can move quickly from experimentation to execution and those constrained by complexity will become increasingly visible – both in the experiences they deliver and the commercial returns they realise,” he concluded.