Despite heavy investments, AI tools have delivered only modest improvements for U.S. online retailers — leaving executives wondering where the real gains are.
Online retailers in the U.S. spent big on AI in 2024—but most are seeing only slight improvements in customer experience.
Retailers spent big on AI. The returns? Meh.
Last year, U.S. ecommerce companies spent an average of $403,000 each on AI tools, hoping to revolutionize the customer experience. Instead, many got a shiny toy that’s mostly just… fine.
According to a Storyblok survey of 300 ecommerce executives, nearly 30% said AI has only slightly improved their digital customer experience. Not quite the Jetsons future they were sold.
Yes, 97% still claimed a positive ROI, but let’s be real: most execs will call anything ROI-positive if it shaved an hour off a spreadsheet. Results this mid after half a million in spend? That’s a red flag with a barcode on it.
Where the money went
So, where exactly did that $400K+ per company go?
- 🤖 Customer service (61%)
- 📊 Marketing analysis (60%)
- 🗂️ Admin task automation (42%)
- 🌍 Translation services (41%)
- ✍️ Content creation (40%)
The breakdown makes sense—low-risk, back-office tasks are easier AI wins. But here’s the kicker: these are internal efficiencies, not customer-facing magic. You don’t win loyalty with a faster ticket queue if the shopping experience still feels like 2016.
And companies are building cool stuff—Walmart just launched “Wally”, a gen-AI assistant to help merchants analyze data and spot product issues. L’Oréal’s marketers are using Google’s Gemini and Imagen 3 models to design packaging and brainstorm campaigns.
That’s all interesting—but it’s mostly still internal tooling. Not the kind of thing that makes a shopper go “wow” at checkout.
The catch: AI still needs babysitting
Retail execs aren’t blind to the gap between AI promise and AI performance.
At Shoptalk Spring, AI took center stage, with retailers discussing everything from auto-localized ads to customer support automation. And at NRF’s Big Show, Target CEO Brian Cornell reminded everyone that the future still needs a human touch.
Translation: AI isn’t ready to run the store solo. It can crank out drafts, answer basic questions, and crunch numbers faster than your intern—but the “wow factor” of a great CX? Still a human domain.
Operator POV: Stop buying AI like it’s a silver bullet
Let’s call this what it is: AI spend has turned into a corporate flex.
Leaders want to show they’re “investing in the future,” so they pour money into AI projects that sound transformational, but actually just automate reporting or rewrite landing page copy. It’s useful, sure—but not game-changing.
Until companies tie AI directly to revenue-driving CX—think personalized shopping, dynamic merchandising, smarter inventory—not just cost-cutting, they’re going to keep seeing “slight improvement” on seven-figure budgets.
Bottom line
AI isn’t useless. It’s just not magic. Most retailers aren’t failing at AI—they’re mis-aiming it.
Use AI to scale what works, not to fix what’s broken. Stop building Frankenstein chatbots and start investing in tools that drive cart conversion, LTV, and retention.
Otherwise, you’re just spending $400K to move the needle from meh to mildly better.
