The impact of AI is felt mostly in the way operations are managed. There are clear improvements in conversion rates, fewer returns, better stock control and faster processes in order preparation and delivery. More than driving consumers online, AI is influencing what they buy and how they decide.

Since the end of 2023, 38% of consumers in France, Germany and the United Kingdom have used AI tools at least once to support purchase decisions. Even so, the share of e-commerce in Europe has changed little, rising from 13.4% to 14.1% in two years, below the peak recorded during the pandemic.

According to Patricia Matias, Head of Retail Services at Savills Iberia, “artificial intelligence is increasingly integrated into the consumer decision-making process, but it does not replace the value of the physical experience. The future of retail lies in an efficient integration between digital and in-store, where technology supports conversion and efficiency, but the physical space continues to build the relationship with the customer.”

The study shows that traditional e-commerce converts just above 3% of visits, while AI-assisted sales solutions can exceed 12% by supporting consumers at moments of indecision.

Reducing returns is another relevant point, especially in fashion, where size and fit issues account for between 60% and 70% of returns. Tools such as virtual try-on are beginning to help reduce this problem.

The way consumers search for products is also changing. The use of AI in online search doubled between 2024 and 2025 and may surpass traditional search in the coming years.

Further ahead, AI systems may take care of the entire purchase process - from search to payment - without direct consumer intervention. In this scenario, Savills estimates that e-commerce in Europe could reach 17.9% by 2030. Even so, this evolution is expected to be slower in Southern Europe, where the in-store experience continues to play an important role.

The study also highlights that physical retail is better prepared today than it was a decade ago. Store networks have been adjusted, stock levels have stabilised and spaces have taken on multiple functions, combining brand experience with logistics operations such as click-and-collect, ship-from-store and returns. Since 2020, total retail stock in Europe has been growing in a controlled manner.

For retail real estate, the focus is increasingly on the quality of retailers’ operations. Better conversion, fewer returns and greater efficiency help retailers support rents in more competitive locations and reduce default risk.

In this context, assets in the best locations and with greater adaptation to digital are the main beneficiaries. Flagship stores, retail parks and supermarkets are well positioned to capture these gains. Assets in less attractive locations or with outdated concepts face greater pressure to adapt.

Overall, the study points to a scenario in which artificial intelligence strengthens physical retail rather than replacing it. Stores continue to play a central role, while digital gains importance in the way demand is generated.