UNITED KINGDOM / AGILITYPR.NEWS / February 26, 2026 / UK retailers deploying conversational AI search are seeing conversion rates up to three times higher than traditional keyword-based journeys, as mounting cost pressures force a rethink of on-site performance strategies, according to new research from Firney.

The report, entitled The £4 Trillion Conversation finds that users engaging with AI-powered search convert at rates between 200% and 300% higher than those browsing via standard filters and category pages. Customers who actively use site search spend 2.6 times more than passive browsers, while conversational consultation can reduce return rates by up to 78% by guiding shoppers to the right product first time.

The findings come as UK retailers are contending with a troubling trifecta of rising acquisition costs, weaker discretionary spending and sustained pressure on margins. With mobile driving up to 75% of ecommerce traffic and cart abandonment on mobile reaching 79%, the report argues that incremental UX improvements are no longer sufficient to unlock growth.

Firney describes the traditional ecommerce model built around keyword search and rigid filters as having reached an “optimisation ceiling”, delivering diminishing returns at a time when conversion efficiency is under intense scrutiny from boards and investors.

Marc Firth, CEO and co-founder of Firney, said retailers are optimising traffic without fully addressing intent.

“Shoppers don’t think in keywords. They think in needs and outcomes. Conversational AI allows retailers to interpret that intent directly, rather than forcing customers to guess the right search term,” he said. “In a margin-constrained market, even small improvements in conversion and returns have a significant commercial impact.”

The report also highlights behavioural shifts among younger UK shoppers. Among Gen Z consumers, 43% begin product searches on TikTok rather than Google, 62% prefer visual search to text, and 70% already use AI tools during the shopping journey.

However, trust remains nuanced. While 65% of consumers are comfortable using AI for analytical tasks such as price comparison, only 14% fully trust autonomous purchasing without human oversight, suggesting retailers must balance automation with transparency and explainability.

With ecommerce growth normalising after pandemic highs and competition intensifying across fashion, grocery and general merchandise, Firney concludes that conversational AI search is moving from experimental feature to structural performance driver.

“Retailers can no longer rely on traffic growth alone,” added Firth. “Understanding customer intent in real time and reducing friction through conversation is becoming a competitive advantage.”

For more information, please visit https://www.firney.com.