Quickfire Digital has published UK research showing widespread consumer frustration with AI-driven online shopping. The study also found that most retailers have delayed planned eCommerce improvements.

Nearly half of consumers surveyed (45%) said they were frustrated by AI-powered shopping experiences, citing generic recommendations, poor search results, and suggestions for out-of-stock products.

A similar share, 44%, said they were frustrated by personalisation more broadly. Complaints included repeated recommendations, irrelevant product suggestions and a sense that brands did not understand their preferences.

Among retailers, 84% said eCommerce improvements had either been delayed or not delivered in the past year. The survey found that 40% blamed budget pressures, while 25% cited security requirements and 23% pointed to fragmented data.

Another pressure point was the cost of maintaining older systems. Two in five retailers said they were spending more than a quarter of their eCommerce budgets on existing platforms, leaving less for changes to customer-facing services.

Retail gap

The findings suggest a mismatch between retailers’ spending priorities and shoppers’ experiences. Quickfire Digital argued that legacy technology and heavily customised eCommerce systems are making it harder for businesses to respond to customer demands, even as more retailers increase their use of AI.

The agency also pointed to separate research published earlier this year showing that 52% of retailers were adopting more AI to drive revenue. That sits alongside the new consumer findings, which indicate dissatisfaction with how the technology is being applied in online retail.

Martin Harper, Co-Founder at Quickfire Digital, set out the agency’s argument in response to the data.

“Right now, as retailers continue to invest heavily in AI and customer experience tools, most of the industry narrative we’re seeing is ‘AI personalisation = good’. But our data is actually challenging that and revealing something no one is talking about: mid-market and enterprise brands are stunting their own growth because they refuse to abandon their legacy or custom-built tech stacks.

“If retailers’ existing systems cannot support the pace of change they need to keep up with consumer expectations, AI may instead be actively putting consumers off.

“It’s also interesting to see a significant amount of the eCommerce budget being spent simply to keep legacy and heavily customised platforms running. Retailers know they need to make meaningful improvements for their consumers, but this hidden ‘Growth Tax’ being paid by retailers who prioritise owning their infrastructure over commercial agility is trapping them.

“This is one of the biggest challenges facing retail businesses, because without the right infrastructure in place, even the best customer experience strategy and AI tools will struggle to deliver results.”

Owned channels

The research also looked at how shoppers prefer to find products online. It found that 45% preferred to search directly on retailer websites, compared with 16% who preferred discovery through social media and content creators.

That finding runs counter to the idea that social commerce and third-party platforms are replacing retailers’ own digital storefronts as the primary destination for browsing and buying. For retailers weighing investment choices, it suggests their own websites remain central to the customer journey.

Harper also commented on that trend.

“Despite all the industry noise around social commerce, marketplaces, AI shopping assistants, discovery on TikTok, Instagram, etc, consumers are still saying the retailer’s own website is the main and most trusted place they use to find and buy products. For retailers who’ve over-invested in social or marketplace channels at the expense of their own site, this insight is a real wake-up call.”

The surveys were conducted among 2,028 UK adult consumers and 201 eCommerce retailers with at least 10 employees.

With consumers reporting frustration with both AI shopping tools and broader personalisation efforts, the research points to a more basic problem than the adoption of any single technology. Many retailers appear to be struggling to fix search, stock visibility and relevance on their existing sites before adding further layers of automation.

Retailer responses also suggest operational constraints are slowing that work. Budget pressure was the most common barrier to planned eCommerce improvements, but security demands and fragmented data also featured prominently, indicating that many businesses face overlapping obstacles.

For mid-sized and larger retailers in particular, the findings illustrate the cost of maintaining complex eCommerce estates while trying to meet rising customer expectations. Forty per cent said they were using more than a quarter of their eCommerce budgets simply to keep existing systems running.

Beccy Stenson, franchise owner of Puddle Ducks Oxfordshire, received two accolades at the conference, marking 15 years of running the business and earning a highly commended mention in the Franchisee of the Year category.

She said: “To be recognised for 15 years in business was special enough, but to also be Highly Commended in the Franchisee of the Year category made the conference even more memorable.

“Puddle Ducks Oxfordshire has been such a huge part of my life, and it is a really proud moment to see how far the business has come.”

Puddle Ducks Oxfordshire operates at 17 pools across Oxfordshire and the surrounding areas, including Oxford, Abingdon, Swindon, Cirencester and Tetbury.

The business employs 39 team members and teaches nearly 1,300 children each week.

Ms Stenson said: “When I launched Puddle Ducks Oxfordshire, I wanted to create a swim school where families felt supported and children felt confident and happy in the water.

“Fifteen years later, that purpose is still at the heart of everything we do, and I’m so proud of the team, the relationships we’ve built with our pools, and the trust local families continue to place in us.”

The conference recognition follows a birthday celebration in Uffington, where families, pool partners and team members gathered to mark 15 years of the swim school.

The event included a visit from Puddle the Duck.

More information is available at puddleducks.com/local-teams/oxfordshire.

KAREN JOY BACUDO

Finance Editor

Pollen Street Capital will acquire Universal Banking from Finastra, turning the core banking software business into a standalone company.

Universal Banking provides core banking systems for account and deposit management, payments, lending and treasury operations. It serves more than 150 customers in over 100 countries, including global and regional banks, digital banks, Islamic banks and building societies.

The sale marks a portfolio shift for Finastra, which will focus more closely on payments and lending after the transaction. Universal Banking will continue under its existing management team once the acquisition closes, subject to regulatory approvals.

At the centre of the business is Essence, the company’s core banking platform. Finastra describes it as a cloud-based system that helps banks replace or work alongside older infrastructure as they modernise their technology over time.

The transaction underscores continued private equity interest in financial software assets that sit close to banks’ day-to-day operations. Core banking platforms are deeply embedded in lenders’ systems, making them critical for institutions seeking to modernise technology without disrupting core services.

Pollen Street said its investment will support Universal Banking as an independent business. The funding is intended to back product development, including generative artificial intelligence and data capabilities, while strengthening customer delivery.

That focus comes as banks face pressure to simplify operations and improve digital services while maintaining continuity in essential systems. Many institutions have moved away from large-scale replacement projects in favour of phased modernisation, allowing new and legacy systems to run together.

Universal Banking has positioned itself around that model. Its products are designed to let banks modernise progressively rather than through a single overhaul, an approach that has gained traction as lenders balance technology investment against operational risk and regulatory scrutiny.

For Pollen Street, the acquisition fits a broader strategy of investing in specialist financial services and technology companies. The private capital manager focuses on businesses with established market positions and recurring customer relationships across the financial and business services sectors.

Pollen Street manages more than €8 billion in assets across private equity and credit strategies. Its investor base includes pension funds, insurers, sovereign wealth funds, endowments, asset managers, banks and family offices.

Chris Walters, Chief Executive Officer of Finastra, outlined the rationale for the sale and the group’s next steps.

“Universal Banking is a strong business with talented people, proven products and deep customer relationships. Under Pollen Street Capital, it will have the dedicated focus and investment to build on that strength. For Finastra, this allows us to sharpen our focus on payments and lending-areas where we see significant opportunities to grow and deliver even greater value for our customers,” said Chris Walters, Chief Executive Officer of Finastra.

Anastasia Kovaleva, Partner at Pollen Street, set out the investor’s view of the business and its prospects as a standalone company.

“UB is a high-quality business with a strong foundation, longstanding customer relationships and a modern platform delivering tangible transformation outcomes. The business is well positioned for future growth in the next phase of core banking evolution. We are excited to partner with the management team to support the next phase of the company’s development, invest in AI-led innovation and help customers accelerate their modernisation journeys,” said Anastasia Kovaleva, Partner at Pollen Street.

Advisers on the transaction included Arma Partners for Finastra and Vista Equity Partners, with Kirkland & Ellis as legal adviser. Nomura advised Pollen Street, and Clifford Chance acted as legal adviser.