Retail is changing rapidly and IKEA is a clear example of how AI is transforming the future of retail

Retail is changing rapidly and IKEA is a clear example of how AI is transforming the future of retail

Retail is changing rapidly and IKEA is a clear example of how AI is transforming the future of retail.  IKEA is now laying off 850 employees as part of another global cost saving program while the company continues to streamline, automate and simplify its organization.

At the same time, it is important to understand that this is not only about cost reductions. It is also part of a larger transformation currently taking place across the entire retail industry, where AI, automation and digitalization are changing how companies operate, sell and interact with customers.

IKEA has previously demonstrated a clear direction within AI and digitalization. Their AI chatbot already handles a large part of customer support automatically, while thousands of employees have been moved into more value creating roles such as:

• interior design advisory
• digital sales
• customer dialogue
• e commerce and digital customer experience

Many retail companies are currently facing major challenges:
• rising costs
• tougher competition
• pressured margins
• changing customer behaviors
• increasing demands for fast and digital customer experiences

At the same time, AI is developing very rapidly and can already streamline many types of repetitive tasks within:
• customer support
• administration
• analysis and reporting
• warehouse and logistics
• marketing
• planning and forecasting

This does not mean that people will disappear from retail. However, it does mean that the skills in demand are changing.

Going forward, the need will likely increase for professionals who can combine:
• business understanding
• technology and digitalization
• customer experience
• change management
• AI and data

We are already seeing retail companies invest more in:
• AI and automation
• digital customer journeys
• personalized customer experiences
• e commerce
• data driven decision making
• more efficient internal processes

Retail will likely be one of the industries most rapidly transformed by AI over the coming years and that transformation has already begun.

Read DI’s article about IKEA’s new cost saving program: 850 employees affected >>