New research from ASPR, the retail and hospitality technology PR agency, reveals a market ready yet sceptical about AI.
The survey, conducted among vendors at the Retail Technology Show 2026, found that one in four (24%) believe AI is either overhyped or actively creating confusion, reinforcing the idea that the market is still working through a credibility gap.
When it comes to differentiation, AI presents both an opportunity and a challenge. 34% say it helps them stand out, while 30% say it is raising expectations from buyers, making it harder to differentiate in practice. A further 18% say AI is creating noise or making it harder to stand out, highlighting how saturated AI messaging has become.
Almost half of respondents, 48%, describe AI as promising but still early, suggesting confidence in its direction but caution in adoption. A further 28% say it is already delivering measurable impact, indicating that real use cases are emerging.
But evidence is key. Proving return on investment is the single biggest challenge facing retailers when it comes to technology, cited by 28% of respondents. This sits ahead of both integration complexity and budget pressures, each at 16%.
AI and vendor overload follow closely behind at 20% each, pointing to a market where there is no shortage of innovation or options, but limited clarity on what actually delivers results.
The findings suggest a clear gap between what technology claims to do and what it can prove commercially. For vendors, that gap is becoming harder to bridge.
What was clear from respondents at the show is that technology providers must clearly link their offering to revenue growth, margin improvement or operational efficiency. Without that, they risk being overlooked, regardless of how advanced the product may be or how much media hype there is.
Beyond technology itself, the research points to a visibility and positioning challenge across the sector. 32% of respondents say standing out in a crowded market is their biggest business challenge, closely followed by 30% who cite reaching the right buyers. Integration concerns at 14% and long sales cycles at 10% suggest that even when interest is there, converting it into closed deals remains complex.
Integration emerges as a consistent theme across both technical and commercial challenges, indicating that it is not just a product issue but a barrier to adoption. Retailers are increasingly cautious about introducing new tools that do not fit seamlessly into existing systems.
Buying behaviour reinforces the shift towards evidence-led decision making. 36% of respondents say proven results and case studies are the most important factor influencing purchase decisions, followed by pricing at 26%. Brand reputation accounts for 14%, while product features sit at just 4%, suggesting that theoretical capability is far less persuasive than demonstrated impact.
The broader market outlook reflects this pressure. 40% describe the retail technology market as highly competitive, with a further 28% calling it saturated. Only 24% focus on its pace of change, and just 2% describe it as full of opportunity, pointing to a sector where activity remains high but differentiation is increasingly difficult.
Looking ahead, efficiency is set to dominate priorities over the next 12 months. 36% say cost reduction and efficiency will matter most, ahead of AI and automation at 28% and customer experience at 22%. The findings suggest that while innovation remains important, it must be closely tied to operational and commercial outcomes.
Abi Spencer, founder of ASPR said:
“The retail technology market is not short of ideas, but it is short of clarity and proof. Buyers are being asked to navigate a huge number of similar propositions, many of which sound compelling but struggle to demonstrate real impact.
“What we are seeing is a shift towards proof over promise. Case studies, measurable outcomes and clear commercial narratives are becoming the deciding factors.
“For vendors, that changes the role of communications. It is not just about visibility, it is about translating complexity into something that buyers can trust and act on. The brands that can do that effectively will be the ones that cut through.”
