by Clare Bailey, The Retail Champion
Why Retailers Aren’t Behind on AI… They’re Stuck on the Basics
AI in retail is everywhere right now.
From personalised recommendations to virtual try-on, we’re being told it’s transforming how customers shop and how businesses sell. But there’s a problem.
When I read the white paper behind this conversation, a couple of statistics genuinely stopped me in my tracks because they didn’t quite match the narrative.
51% of UK shoppers don’t trust AI to complete a purchase for them.
So while retailers are investing heavily in AI and ecommerce technology, a large proportion of customers are still hesitant to rely on it.
Which raises a bigger question.
Are we focusing on the right problem… or just the most exciting one?
It was enough to make me want to dig deeper, so I invited Tarek Müller, co-founder and CEO of SCAYLE, onto the Retail Reckoning podcast to talk it through properly.
There’s a gap, and it’s widening
One of the things that really struck me in this conversation is how wide that gap has become.
On one side, you’ve got retailers investing in AI, automation, personalisation.
On the other, you’ve got customers who are still working out what they trust, what they understand, and what feels comfortable.
That doesn’t mean AI is a bad investment. Far from it.
But it does mean we need to be much more honest about where it adds value.
Because right now, AI is brilliant at helping customers find things.
Search, recommendations, inspiration… it’s all getting better, quickly.
But when it comes to actually committing to a purchase?
That’s still driven by confidence.
And confidence is built over time, not coded overnight.
The uncomfortable truth most retailers avoid
It’s very easy to sit in conversations about “what’s next”.
New platforms. New tools. New capabilities.
But the real issue, the one that keeps coming up again and again, is much less exciting.
Most retailers aren’t struggling because they lack innovation.
They’re struggling because of what they’ve already built.
Systems layered on top of systems.
Fixes built on top of fixes.
Processes that made sense five years ago, but don’t quite work now.
And instead of stepping back and addressing that properly, the instinct is often to keep adding.
Another platform.
Another integration.
Another solution.
It feels like progress.
But often, it’s just complexity.
The Formula One analogy and why it matters
There’s a moment in the podcast where we talk about retail tech in terms of a Formula One car.
You can invest in all the performance upgrades you like.
Better tyres, better aerodynamics, marginal gains everywhere.
But if the engine isn’t right, you’re not going anywhere fast.
And in retail, your engine is your core technology.
If that’s outdated or inflexible, everything else becomes harder than it should be.
You end up spending more time maintaining than improving.
More time fixing than growing.
And that’s where a lot of IT teams are right now. Not driving innovation, but keeping things running.
Meanwhile, customers are doing something interesting
At the same time as all this investment in AI, there’s a very clear counter-movement happening.
People are craving more human experiences.
More real interaction.
More content that feels genuine.
More connection with brands that feel… well, human.
It’s not one or the other. It’s both and that’s where things get complicated.
Because while we’re talking about virtual try-on, for example, nearly half of UK shoppers haven’t even experienced it yet.
So we’re pushing forward at speed, but not always bringing customers with us.
The basics still aren’t right
This is the part that I find hardest to ignore.
For all the talk of innovation, there are still plenty of retailers who can’t consistently deliver the fundamentals.
Click and collect that works properly.
A joined-up experience between store and online.
Personalisation that actually feels relevant.
Not because they don’t understand it.
Because their systems don’t allow it.
And that’s the bit that often gets brushed over.
It’s much easier to talk about the future than to fix the present.
What this means if you’re running a retail business
If you’re an independent retailer reading this, don’t feel like you’re behind.
In many ways, you’re in a stronger position than you think.
Because you’re not carrying the same level of legacy.
You’re not tied into systems that are difficult to change.
And you can make decisions more quickly.
The opportunity isn’t in doing more.
It’s in doing the right things, in the right order.
Understanding where AI genuinely helps.
Knowing where your customers still want a human touch.
And being honest about whether your current setup is helping or holding you back.
A better question to ask
Instead of asking, “what should we invest in next?”
It’s worth asking:
“Is what we already have fit for purpose?”
Because if it isn’t, no amount of new technology layered on top is going to solve that.
It just makes the problem harder to see.
If this is on your radar, listen to the full conversation
This is exactly what I explore in this week’s episode of Retail Reckoning with Tarek Müller, co-founder and CEO of SCAYLE.
It’s a genuinely interesting perspective. Technology built by a retailer, not just sold to one.
We talk about where AI is actually working, why so many businesses are stuck, and what needs to change if retail is going to move forward properly.
If you’re making decisions about tech, investment, or growth this year, it’s well worth a listen.
👉 Listen to the full episode here
Disclosure: This episode was a paid speaking opportunity. Clare was compensated to take part in this conversation. As always, the views shared reflect a genuine discussion.
About Clare Bailey
Clare Bailey is the founder of Retail Champion, a retail consultancy specialising in retail strategy, consumer insight and business transformation.
With over three decades of experience across corporate retail, independent businesses and advisory work, Clare is a recognised commentator on retail trends, the future of the high street and consumer behaviour.
She regularly speaks at industry conferences and appears in national and regional media discussing developments in the retail sector.
