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AI and the future of fulfilment: from promise to performance

Rory O’Connor, Founder and CEO, Scurri. Picture Andres Poveda

The future of fulfilment will be shaped by artificial intelligence, says Rory O’Connor, CEO of Scurri who argues that, as consumer expectations for speed, reliability and sustainability reach new heights, it will be the true test of retail performance.

Marketing has dominated the AI conversation, focusing on discovery, personalisation and content creation, but as consumers raise the bar for what fast and seamless shopping really means, the spotlight has shifted to operations. Fulfilment has become the ultimate test of AI in retail, proven in extensive research undertaken by Scurri in September 2025.

According to the report, 38% of UK consumers already use AI in their online shopping journeys, with younger shoppers leading the way. These consumers are uncompromising in their demands. 60% expect AI to improve delivery updates while 57% expect AI to improve order allocation. 59% expect AI to be deployed during peak periods yet 44% refuse to pay extra for AI-enabled speed.

This is the new operational paradox. Consumers view AI-enhanced fulfilment as a basic expectation, not a premium feature. That means operations leaders must drive AI adoption in a way that’s cost-neutral, delivering efficiency gains without eroding margin.

The retail industry has made significant strides with AI pilots in forecasting, routing and warehouse automation. But most retailers are still in the early stages of what Scurri defines as the AI Fulfilment Maturity Curve. This starts with manual and reactive with limited tracking, static carrier selection, moving to Point AI tools with pilots in routing or chatbots for FAQs. The next step is Integrated AI operations with connected forecasting, delivery and returns optimisation followed by Autonomous fulfilment where AI manages end to end delivery, post-purchase and sustainability outcomes. In short, accelerating along the curve is now essential because AI is now a competitive differentiator.

The operational upside is proven in evidence from McKinsey, DHL and Unilever which shows the scale of the opportunity. AI-driven fulfilment delivers measurable results across cost, capacity, and resilience, specifically 20-30% reductions in inventory, 10-20% lower warehousing costs, 15-25% savings in returns handling, up to 50% fewer delivery delays

40% higher throughput in automated fulfilment and 64% lower supply chain emissions.

Even modest improvements in forecasting accuracy cascade through the entire supply chain. McKinsey estimates AI forecasting can cut errors by 20-50%, leading to 65% fewer lost sales and 25-40% lower administrative costs.

AI is about resilience

The past few years have exposed the fragility of fulfilment networks. Whether during pandemic surges, cost-of-living disruptions or social commerce spikes, the ability to anticipate and adapt determines who thrives. AI forecasting and automation directly strengthen operational resilience. They reduce stockouts, prevent over-buying and optimise resource allocation when demand fluctuates. The goal is to build predictability and trust into every fulfilment promise.

Nowhere is this more visible than in social commerce. Platforms such as TikTok Shop and Instagram have turned discovery into an instant purchase journey, but they’ve also exposed fulfilment as a trust bottleneck. Consumers love the immediacy of social shopping, yet 72% say AI is key to solving fulfilment pain points and 57% expect retailers to use AI to manage logistics for social orders.

TikTok Shop UK’s move to AI-driven logistics has already cut delivery times from seven to three days. For operations managers, this is the future, where fulfilment quality, rather than product content, will determine whether shoppers complete the next purchase.

AI in delivery and post-purchase – the brand’s moment of truth

Delivery and post-purchase are where consumers most feel AI in action. In the research, 60% say they want AI-powered tracking and proactive updates, 54% expect better post-purchase communication and 50% prefer AI-automated returns. When these experiences work, consumers gain confidence and loyalty. When they fail, the brand promise collapses no matter how strong the marketing message.

AI’s role is to make post-purchase communication predictive rather than reactive. Dynamic carrier allocation ensures parcels move through the fastest, most reliable network. Predictive ETA models anticipate traffic, weather and availability. Generative AI personalises communication at scale, while hybrid AI + human service maintains connection where it matters most.

The same systems that drive speed can also deliver sustainability. DHL’s AI-powered routing tools have improved delivery efficiency while cutting emissions, and Unilever reports a 64% reduction in supply chain CO₂ through AI optimisation. For retailers under mounting ESG scrutiny, AI offers a rare win win; lower environmental impact and reduced cost-to-serve.

The question for operations leaders is now quickly AI can be scaled. Fortunately each step of the fulfilment chain offers tangible gains. Start with demand forecasting where even a 1% improvement can save millions in overstock and stockout costs. Automate warehouses to lift throughput 10-20% and reduce mis-picks. Optimise last mile with dynamic carrier selection and AI routing to cut costs and emissions. Predict and automate returns, reclaiming lost margin while improving resale cycles. And, Embed sustainability KPIs, such as CO₂e per parcel to link AI impact with ESG performance.

The retailers that integrate AI across these stages will be the ones who control costs, protect margins, and deliver the reliability consumers now take for granted.

At Scurri, we see AI as an operational enabler that must work invisibly to deliver real results. Consumers already expect AI to support fulfilment, but they won’t pay extra for it so that means AI must be practical, cost-neutral and reliable, from forecasting to final mile. Ultimately, this is about trust, ensuring that retailers can meet rising expectations while protecting margins and sustainability.

For more insight into AI and the future of fulfilment, download our report.

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