UK retailers bet big on AI as online Christmas sales hit record levels
UK retailers are accelerating AI spend to keep sales momentum going. New research shows almost three-quarters plan to increase AI investment by 2030, and more than half expect payback within two years.
This isn't theory. Online Christmas sales are forecast to hit a record £26.9bn this year. Digital is now the primary growth engine-and AI is the force multiplier behind it.
Key findings you can act on
The study-run by Eversheds Sutherland with Retail Economics-surveyed 250 retailers in Q3 2025 across the UK, US, France, Germany, and the UAE.
- AI-linked productivity is set to climb from roughly 4-6% a year early on to 6-9% as systems mature next decade.
- Larger retailers (£500m+ turnover) and mid-market players (£100m-£500m) are investing the most to modernise legacy tech and retrain teams.
- Online-first and hybrid retailers are allocating up to 50% more to AI than store-led operators.
- Digital and Technology Operations will reach the deepest AI integration by 2035, with support, supply chain, and marketing scaling intelligent tools for forecasting, decisions, and customer engagement.
- Leaders expect better jobs, not fewer. Over four in five say roles will become more customer-focused; in the UK, 94% say AI enables more meaningful, value-added work.
- Top blockers: integration challenges (42%), data privacy, and ongoing skills shortages-demanding investment in training, job redesign, and governance.
"The future of retail is a collaboration between people and AI systems, and it is already taking shape," said Catherine Detalle, Partner and Consumer Sector Lead at Eversheds Sutherland. Retailers that invest in skills, ethics, and tight alignment between technology and strategy will win.
For reference: Retail Economics and Eversheds Sutherland.
What this means for Sales leaders
- Higher quotas are coming. AI is pushing sales per employee up, so performance expectations will rise with it.
- Buyers now expect real-time personalization, consistent delivery dates, and instant, accurate quotes-every channel, every time.
- RevOps needs a data spine. Marketing, supply chain, and support are automating fast; Sales must plug into the same signals and SLAs.
- Teams must shift from manual updates to judgment calls: prioritizing accounts, shaping offers, and strengthening relationships.
90-day revenue plays (practical and proven)
- Deploy AI lead scoring using first-party data + intent signals to reprioritize outreach within two weeks.
- Automate prospecting: generate account briefs, personalization snippets, and multi-threading maps directly inside your CRM.
- Tighten pricing and discounting with AI guardrails; test offer structures by segment and measure lift in AOV and win rate.
- Use AI to draft, track, and summarize customer emails and calls; standardize follow-ups within 24 hours.
- Introduce a forecast "AI consensus" view that flags risk by product, region, and inventory constraints.
- Run weekly "next-best-action" lists: who to call, which SKU to position, and what objection to preempt-based on live data.
- Mine support tickets and site search for upsell signals; route hot intents to Sales in real time.
KPIs to watch (and improve)
- Sales per employee
- Lead-to-opportunity conversion and demo-to-close rate
- Average order value and discount leakage
- Time-to-quote and proposal cycle time
- Forecast accuracy and slip rate
- Stockout incidence on quoted items
- Return rate and post-purchase CSAT
- AI-assisted activity share (emails, notes, summaries, recommendations)
Roadblocks you'll hit-and how to cut through them
- Integration debt: start with an API-first data layer, pilot in a sandbox, and ship one workflow at a time (lead scoring, quoting, or forecasting).
- Data privacy: run DPIAs, tighten consent management, and restrict PII exposure in prompts and logs.
- Skills gap: upskill sellers on prompts, CRM hygiene, and analytics basics; appoint AI champions inside each pod.
- Change fatigue: pick two high-impact use cases, set clear before/after metrics, and share wins weekly.
Who's moving fastest
Larger and mid-sized retailers are pushing hardest, with online and hybrid models spending up to 50% more on AI than store-led peers. Digital and Tech Operations will be deepest by 2035, but Sales will feel the impact through cleaner signals, smarter pricing, and tighter delivery promises.
Do this this week
- Audit your top three friction points from lead to close.
- Select two AI workflows to pilot (e.g., lead scoring and call summarization) and set 60-day targets.
- Define guardrails for privacy and approvals; document the handoffs with Marketing and Ops.
- Schedule two short training sessions: one on prompts, one on CRM best practices with AI.
Need structured upskilling?
If your team needs a clear path to AI fluency by role, explore curated options here: AI courses by job. For a quick scan of what's current, check the latest AI courses.
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