AI Headed For Rapid Retail Integration By 2035, Freeing Up Employees For Meaningful Tasks
- Dec 11, 2025
- 2 min read
Over the next decade, UK retailers expect AI to transform the retail workforce and productivity, particularly operational and routine activities, although legacy systems and skills gaps remain major constraints, according to a new report.
Almost three-fifths of retail tasks could be either automated or human‑assisted by AI by 2035, found the Retail Workforce Reimagined research, carried out by Retail Economics and law firm Eversheds Sutherland.
With many major UK retailers already using AI across both grocery and non‑grocery, the study frames AI as a way to shift staff towards more value-adding and customer-focused activity rather than simply removing jobs.
The biggest impact in the next 10 years will be on operational and routine activities rather than leadership roles, assisting with tasks including stock management, supply, and website content.
Leadership functions, meanwhile, are forecast to see the slowest shift in adoption, with about one‑third of leadership tasks judged suitable for AI over the next decade.
“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,” explained Richard Lim, CEO at Retail Economics. “Disruption will happen in waves as retailers test, learn and iterative generative and agentic AI technologies.”
Productivity Impact
Already, UK retailers have earmarked around 30% of their digital budgets for AI innovation, plus more than three-quarters (76%) plan to increase this investment during the next two years.
The main application areas include stock management, supply chain processes, and website content, where AI can streamline decisions and execution.
The study suggests that AI integration could increase sales per employee by about 4.9% between 2025 and 2030, rising to 6.4% once AI is fully embedded across operations.
Around 94% of UK retail leaders believe that AI will enable more meaningful and value-added work – achieving the highest confidence level among the study’s five markets: the UK, the US, France, Germany, and the UAE.
“AI has the potential to reshape the global retail sector,” pointed out Andrew Todd, partner and retail and wholesale subsector lead at Eversheds Sutherland.
“This will make retail operate in a more meaningful and customer-centric way, boosting efficiency and productivity. Ultimately delivering value to the consumer.”
However, the Retail Workforce Reimagined research stresses that outdated legacy IT systems and widening capability gaps in data engineering, governance, and AI literacy could hold back adoption and limit the benefits.
Retailers therefore will need robust legal governance, continuous upskilling, and thoughtful workforce design to unlock the full benefits.
AI Adoption In UK Grocery Retail
A wide range of UK grocery retailers are now using AI in some form, from demand forecasting and supply chain optimisation, through to security, in‑store tech, and online personalisation.
Adopters include Asda, Co‑op, Marks & Spencer, Morrisons, Lidl, Tesco, Sainsbury’s and Waitrose, which just this week announced a partnership with SOLUM to deploy Electronic Shelf Labels (ESL) across all of its stores.
Read the Retail Workforce Reimagined report in full here.
Comments