Almost three-fifths of retail tasks could be automated or augmented by artificial intelligence by 2035, according to a major new study.
The report, Retail Workforce Reimagined, published on December 10 by Retail Economics in partnership with law firm Eversheds Sutherland, suggests that AI adoption will accelerate across the industry over the next decade. While leadership roles are expected to see the slowest shift— with only around one-third of tasks deemed suitable for AI, the technology is set to have a far broader impact across retail operations.
AI is projected to enhance functions such as stock management, supply chain processes and online content creation, offering retailers greater efficiency and accuracy.
The research revealed that UK retailers have already allocated around 30% of their digital budgets to AI-driven innovation, with 76% planning to increase their investment over the next two years.
Richard Lim, CEO of 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 iterate 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.”
The study suggests that AI integration could drive a 4.9% uplift in sales per employee between 2025 and 2030, rising to 6.4% once the technology is fully embedded across retail operations.
According to the findings, 94% of UK retail leaders believe AI will enable staff to carry out more meaningful, value-added work, the highest level of confidence recorded among the five international markets included in the study.
However, researchers caution that the path to AI adoption may be costly and complex, with outdated legacy systems and widening capability gaps in areas such as data engineering, governance and AI literacy posing significant challenges.
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, judgement and customer engagement.
“This will make retail operate in a more meaningful and customer-centric way, boosting efficiency and productivity, and 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 a strong focus on training will be best placed to unlock productivity, foster innovation and ensure the workforce remains resilient in a rapidly changing, AI-influenced environment.”
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