Small businesses use AI to save time and money but one in 10 say it's 'cheating'

Research has shown that small retail businesses in the UK are turning to artificial intelligence (AI) to save time and money, with a survey of 300 such retailers revealing that 83% have begun utilising AI, and a third use it daily. The most frequent applications include marketing support (33%), general research tasks (26%), and customer service management (23%).

On an average day, respondents estimated that they save over two hours through the use of AI. More significantly, the study found that 73% believe that AI saves their business money, reporting an average saving of £79 per day - equating to nearly £20,000 annually for the third of retailers who use it daily.

The research, commissioned by global wholesale marketplace , also revealed that 19% of respondents said that the use of AI has led to an increase in their sales. Four out of ten small retailers identified rising business costs as their biggest challenge, but suggested that AI could help reduce these costs and potentially rescue struggling high streets.

Many believe AI can help them improve overall efficiency and increase customer engagement. Because of this, 15% view AI as a means to future-proof their business against industry changes and prevent them from falling behind other retailers, both large and small.

Happy & Glorious, a small business in Canterbury, is one example of a company leveraging the AI revolution. Its owner and shopkeeper, Kate Tompsett, said: "Right now, it's letting me juggle a massive website overhaul at the same time as I ramp up my customer emails.

"I mostly use it to sense-check and proofread marketing copy, but it's also brilliant for rewriting product descriptions, coming up with snappy email subject lines, and even telling me the best time to post on social media. This is helping Happy & Glorious to grow at an otherwise challenging time and I'm sure it will boost future sales."

But not all independent retailers are as convinced by the power of AI. According to the research, one in 10 small businesses have 'no interest' in adopting it. One in 10 consider the use of AI as 'cheating' and others fear they would become too dependent on it and worry it lacks the 'personal touch'.

Nicola Eyre, owner of independent store Cissy Wears, expressed her hesitation to fully embrace AI, stating, "It often feels at odds with the values that guide my business. Authenticity, human connection, and thoughtful storytelling all risk being lost when too much is automated.

"I've worked hard to build a brand with a clear voice and creative identity, and I'm not ready to hand that over to an algorithm."

The study carried out through OnePoll.com also found 11% aren't confident when it comes to adopting new business tools or software generally. While 74% of independent retailers want more support and advice on the benefits of the tech, 48% are worried they might get left behind if they don't adopt AI soon.

Charlotte Broadbent, UK general manager at Faire, said: "Despite tough economic conditions, many of the independent retailers we work with are embracing AI to save time, cut costs, and compete with bigger retailers.

"What's exciting is that technology - and particularly some of the AI driven tools we offer our retailers - are helping to level the playing field, giving small businesses access to the same efficiencies and insights as much larger competitors.