Nearly 60 per cent of retail tasks could be augmented by AI by 2035, according to new research.

A study from law firm Eversheds Sutherland and research agency Retail Economics, which surveyed 250 retail businesses in the UK, as well as France, Germany, the US and United Arab Emirates, suggests that the speed of this shift sets the UK as one of the most advanced global markets, with retailers in the nation spending 30 per cent of their digital budgets on innovation aligned to AI.

The figures, which also drew on annual national statistics, ILO Harmonised Microdata, and proprietary data to classify job numbers, wages and sales by country, show that a further 76 per cent of UK retailers expect to increase their AI investment over the next two years.

The findings demonstrate that digital and technology operations, including online, digital, and IT teams will be the most exposed to AI, while supply teams, including merchandising, inventory, and sourcing, will see similar levels of AI-enabled tasks.

Store Operations, which make up 55 per cent of employment in UK retail according to the research, will also see meaningful change over the next 10 years, with AI impacting nearly three fifths of tasks carried out in this area by 2035.

This may include the rollout of AI-enabled shelf analytics, smarter stockroom management, and real-time customer insight.

The report reveals that leadership faces the slowest integration, with just over one-third of tasks suitable for AI in 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," said Richard Lim, chief executive, Retail Economics. "Disruption will happen in waves as retailers test, learn and iterative generative and agentic AI technologies."

But he added that without tackling legacy systems and closing critical skills gaps, retailers will struggle to "unlock the full gains AI offers."

The study also sheds light on growth in sales per employee as a direct result of AI integration in job roles, with this expected to rise by 4.9 per cent annually in early adoption stages between 2025 and 2030. This is predicted to increased further to 6.4 per cent per year once the technology is more embedded across operations.

"As AI increasingly handles routine and data-driven tasks, employees will be more able to focus on strategy, creativity, judgement and customer engagement," added Andrew Todd, partner and retail & 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.

"The emergence of new specialist positions and the evolution of traditional roles highlight the need for continuous upskilling and agile workforce models."

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