Retailers are ramping up investments in artificial intelligence as they look to close the gap between consumer expectations and delivery performance, according to a new report from ShipStation.
The company’s Ecommerce Delivery Benchmark Report 2026, developed in partnership with Retail Economics, surveyed more than 8,000 consumers and 400 retailers across several countries, including Canada.
The report found 90 per cent of global retailers plan to increase their AI investments over the next 12 to 24 months to optimize operations.
North American merchants are leading the shift. About 61 per cent of retailers in the region are actively expanding their AI use and exploring new applications, while 28 per cent say they have already embedded and scaled AI across several functions. That compares with 50 per cent and 17 per cent, respectively, in Europe.
The push to adopt AI comes as retailers struggle to meet delivery expectations. In North America, 59 per cent of consumers expect two-day delivery, but only 40 per cent of retailers offer it as a standard option.
Price sensitivity also remains an issue. The report found consumers are willing to pay between $5 and $9 for premium delivery services, yet only 42 per cent of U.S. retailers provide shipping within that range.
When asked where AI could have the biggest impact over the next two years, North American retailers pointed to delivery execution (44 per cent), predictive fulfillment (39 per cent) and reverse logistics (26 per cent).
“With so many businesses scaling their AI use, it’s clear that AI is no longer a futuristic concept—it’s a necessity for shippers looking to compete effectively and meet evolving consumer demands,” said Kelly Vincent, chief product officer at Auctane, ShipStation’s parent company.
Retailers also cited key challenges in adopting the technology. In North America, 33 per cent pointed to adopting AI and emerging tech as a top hurdle, followed by fulfillment costs (29 per cent) and managing inventory across multiple channels (26 per cent).
The report found adoption varies by company size. Globally, 53 per cent of small retailers — defined as those with annual turnover under $125 million — cited high AI development costs as a barrier, while 35 per cent reported difficulty integrating new tools with legacy systems.
Among large retailers, defined as those with annual turnover above $625 million, 47 per cent said a lack of skilled expertise and resources was a challenge, and 53 per cent cited customer resistance and lack of trust.
“We’re here to help any size of business, small to large enterprise businesses, achieve growth and that includes helping them understand how to use AI to their advantage,” continued Vincent. “We hope to clear a path for merchants to integrate AI and transform their fulfillment into a competitive advantage.”
The surveys were conducted in November 2025 and included respondents from Canada, United Kingdom, U.S., Germany, France, Spain, Italy and Australia.
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