AI is transforming retail on both sides of the Atlantic, but the approaches taken by UK and US brands look very different. US retailers are using the technology to find new revenue opportunities, while the UK has focused on internal operational improvements.
Al Williams, VP of Market Strategy at Commerce, explores the reasons behind the different approaches, and the potential market gap if UK retailers don’t take the next step in their AI adoption strategy.
How does AI deployment in US ecommerce differ from the approach taken by UK retailers?
“For UK retailers, the early AI adoption roadmap has largely been about operational efficiency: marketing content, surface-level customer service, and post-purchase support like “where’s my order?” queries. US retailers are doing something different. They are embedding AI directly into the shopping journey. A third of US adults now use AI agents when shopping online, tools like Amazon’s Rufus, to discover or compare products. In-chat checkout experiences are becoming common.
“US retailers are using AI to boost visibility, conversion, and revenue. UK investment remains more cautious, focusing on internal processes rather than the entire customer journey. Neither approach is inherently right or wrong, but the difference is showing up in real outcomes across the two markets.”
What factors, such as regulation or consumer sentiment, have influenced the pace and focus of AI adoption in the UK?
“Regulation and consumer expectations have been the two biggest forces. GDPR means shoppers expect clear consent, transparency on how their data is used, and control before they engage with AI. That’s why UK retailers tend to start with safer operational use cases like automating support, enhancing content, and streamlining fulfilment.
“The UK’s cautious approach has real merit. It builds genuine trust with shoppers. It also creates an opportunity: to move deliberately into customer-facing AI while competitors elsewhere are still iterating in public and learning from their mistakes. In the US, fewer regulatory expectations from shoppers make it easier to experiment publicly and quickly. That’s a trade-off, not a clear advantage.”
How can UK retailers use AI to drive growth and revenue like their US counterparts, and what mindset shifts make it possible?
“Faster AI adoption in US ecommerce has been less about technology and more about how the internal conversation is framed. The question isn’t ‘How do we save cost?’ It’s how do we acquire smarter, convert faster, and grow lifetime value?’ US retailers treat AI as a growth lever across the entire customer journey, personalising discovery, optimising pricing, guiding promotions, streamlining checkout, and automating lifecycle communications.
“UK retailers already have strong operational foundations. The shift is about redirecting that discipline toward growth-oriented experiments like opt-in recommendations or assisted checkouts. These controlled tests build both insight and customer confidence. The retailers that combine operational rigour with customer-facing initiatives are the ones that move fastest.”
What initial, practical steps can UK retailers take now to begin closing the AI implementation gap and enhance both sales and customer experience?
“The first step is linking operational AI with revenue. Product data should be enriched and structured with detailed specifications, images, reviews, and supporting content. That is what allows AI to surface the right products during discovery and conversational search. Without clean data, the AI has nothing useful to work with.
“From there, predictive personalisation can prioritise high-value customers and relevant offers. Controlled agentic shopping experiences build comfort and insight. Dynamic pricing and AI-driven lifecycle communications improve both conversion and retention over time.
“Transparency and governance aren’t optional extras. They are what makes the whole thing sustainable. Data discipline plus growth-focused experimentation is how the gap gets closed.”
Looking ahead, could UK retailers risk falling behind their US peers if they don’t shift strategy and what might that market gap look like?
“Yes, although it’s unlikely to be a sudden shock. The gap will emerge quietly, starting with share of attention and gradually showing in revenue. Global retailers that lean into AI for discovery, conversion, and retention will start owning key moments of decision. Brands focused mainly on operational efficiency may struggle to influence high-intent journeys – or show up at all.
“Customer acquisition costs will rise, conversions may happen earlier with competitors, and lifetime value growth will lag as AI-driven retention compounds faster elsewhere. The market isn’t dramatic, but it is cumulative. And cumulative gaps are harder to close than visible ones.”
