Are smaller retailers winning the AI race?

While 99% of large UK retailers have AI expertise in-house, 31% of small retailers are already using AI daily. The competitive advantage isn't about resources, it's about friction, proximity, and speed of testing.

I've been learning about AI at quite a pace recently, and it made me wonder: if individuals can move this quickly, what does that mean for smaller retailers?

Having AI expertise isn't the same as using AI day to day. One group has resources and roadmaps. The other has the freedom to test on Tuesday and see results by Wednesday.

Virgin Wines removes wine selection uncertainty by matching sensory attributes to individual preferences.

Abelini, an independent Hatton Garden jeweller, uses AR/AI so customers can see how rings look on their own hands.

ListAid helps charity shop volunteers price donations accurately in under a minute.

Finney's in Aberdeen makes three generations of jewellery expertise accessible through digital tools.

Happy and Glorious in Canterbury uses AI for admin tasks, freeing time for customer work.

The pattern? AI sits right next to decisions - customer decisions and colleague decisions. That proximity matters because when AI is close to the decision, outcomes change quickly.

In larger organisations, AI often lives deeper in infrastructure - optimising systems, forecasting demand. That work matters, but it's further from the moments where customers hesitate or teams feel unsure.

Smaller retailers have fewer layers between problem and solution. They notice issues sooner, test faster, keep what works, drop what doesn't. That ability to connect problem, experiment, and outcome is where the advantage lies.

When you look closely at your customer journey (into the detail of what actually happens) friction points stand out. Those are moments where people hesitate, teams second-guess, or customers disappear. Once you see those moments clearly, AI use cases become obvious.

Your AI plan doesn't need to run the whole business. It needs to support decisions causing friction for customers and colleagues. Tackle things moment by moment - that's your roadmap.

The competitive advantage isn't about AI. It's about noticing where customers hesitate, where staff feel anxious, where you're losing time. It's having the freedom to do something about it quickly.

The difference shows up when technology supports real decisions. When it helps someone choose with confidence. When it removes guesswork from pressured moments. When it gives people time to focus on what matters.

That's when AI has impact. That's when it gives you a competitive advantage.

Get the full show notes with all frameworks and resources mentioned at https://wheresyourcustomer.com/11

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