E-commerce giants struggle as legacy tech stifles AI ambitions

The survey of 2,028 consumers and 201 retailers reveals that 45% of shoppers are unhappy with AI-powered search and generic, inaccurate recommendations. This dissatisfaction is compounded by a lack of basic reliability, such as AI suggesting items that are already out of stock. Retailers are aware of these shortcomings but face significant internal hurdles; 84% of surveyed companies reported that planned improvements stalled over the past year.

Budget constraints and data fragmentation are the primary culprits. Many firms are now trapped by a "growth tax," with 40% of retailers spending over a quarter of their e-commerce budget simply maintaining existing, custom-built platforms. Martin Harper, co-founder of Quickfire Digital, warns that these legacy systems cannot support the speed required for modern retail. By prioritizing infrastructure ownership over commercial agility, brands are effectively sabotaging their own AI tools. Despite the industry hype surrounding social commerce, the research confirms that 45% of consumers still prefer discovering products directly on a brand’s website, underscoring the high cost of failing to modernize these primary digital storefronts.