Almost three-fifths of retail tasks could be automated or augmented by AI by 2035, according to new research.
The study, titled ‘Retail Workforce Reimagined’, was carried out by research agency Retail Economics and law firm Eversheds Sutherland.
Published today (10 December), the data showed that leadership will see the slowest integration of the technology, with just one-third of tasks suitable for AI over the next ten years.
AI is expected to be integrated across the retail sector, aiding things such as stock management, supply and website content.
The report highlights that UK retailers have pledged 30% of their digital budgets to AI innovation, with 76% expecting to increase their investment over the next two years.
Richard Lim, CEO at Retail Economics, said: “UK retailers are accelerating their investment in AI. The next decade will see a profound shift in how work is carried out across the sector, supported by rising budgets and new use cases. Disruption will happen in waves as retailers test, learn and iterative generative and agentic AI technologies. But without tackling legacy systems and closing critical skills gaps, retailers will struggle to unlock the full gains AI offers.”
It showcases that the industry can expect a 4.9% growth in sales per employee as a result of AI integration between 2025-2030. This rises to 6.4% once the technology becomes embedded across operations.
According to the report, 94% of UK retail leaders agree that the innovation” enables more meaningful and value-added work”. It also highlights that this is the highest level of confidence reported out of the five markets in the study.
However, the research highlights that integration could be costly and complex due to legacy systems. It also says there is a widening capability gap around data engineering, governance and AI literacy.
Andrew Todd, partner and retail and wholesale subsector lead at Eversheds Sutherland said: “AI has the potential to reshape the global retail sector. As AI increasingly handles routine and data-driven tasks, employees will be more able to focus on strategy, creativity, judgment and customer engagement.
“This will make retail operate in a more meaningful and customer-centric way, boosting efficiency and productivity. Ultimately delivering value to the consumer. The emergence of new specialist positions and the evolution of traditional roles highlight the need for continuous upskilling and agile workforce models. Retailers who approach AI adoption with thoughtful workforce design, robust legal governance and an adaptable focus on training will be best placed to unlock productivity, foster innovation, and ensure the workforce remains resilient and adaptable in a rapidly changing AI-influenced environment.”
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