- Square report finds more than four in five restaurant and beauty leaders want to use more AI
- Businesses are spending more time on hiring and operations than before
- Companies are investing in their payment experiences with the rise of BNPL
If you run an ecommerce business, then payment gateway giant Square reckons you will have an expensive year ahead, with considerable investments anticipated across the board.
Following a recent announcement by UK Chancellor of the Exchequer Rachel Reeves on how the country’s government plans to stimulate economic growth, Square’s ‘Future of Commerce’ report explores how businesses plan to tackle the “triple challenge” of sustained high inflation, shrinking consumer spend, and the need to raise prices.
Key to future investments is artificial intelligence, with many businesses hoping to realize productivity boosts to tackle operational and financial efficiency.
UK businesses are investing to cut costs
Square found 85% of restaurant leaders plan to invest in AI and automation, with staff marketing and promotions (77%), inventory management (77%), payments (76%), and menu optimization (76%) all hopeful areas for improvement.
“As businesses continue to face economic pressures, we’re seeing them invest in growth and experimentation as they find new, streamlined ways to work and deliver exceptional customer service – particularly through using time-saving and experience-enhancing technology,” noted Square UK Executive Director Samina Hussain-Letch.
Businesses are looking to acquire and maintain connections with their customers – 71% are planning to increase investment in their loyalty or reward schemes. Restaurant leaders are following suit with 83% of them agreeing such programs help increase order size, encourage repeat visits, and deliver ROI.
The study also found that 73% of leaders now spend more time on hiring than they did a year ago, with 75% spending more time on business operations.
In other areas, retailers are looking to merge the physical and digital shopping experience for a more seamless transaction.
It’s worth mentioning that it is not just eateries that are looking to cash in on customers – 84% of beauty workers are also looking to use AI and automation to help with marketing and inventory management over the next year.
UK consumers heavily rely on the Buy Now, Pay Later market and it is set to rise from £30 billion to £47 billion by 2029 – a 57% increase.
Looking ahead, the need for further digitization of business processes, both operationally and customer-facing, is evident, and companies that are willing to stay ahead of the curve will see the best outcomes.
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