AI set to automate 60% of routine retail tasks by 2035
The majority of routine retail tasks are set to be replaced by artificial intelligence (AI) by 2035, according to new data. A report from law firm Eversheds Sutherland and research agency Retail Economics highlights that nearly 60% of retail tasks across core functions could be augmented or automated by AI within the next decade.
In response to rising costs, UK retailers are set to increase investment significantly in AI technology. The report reveals that UK retailers plan to spend a third of their budgets on AI-aligned tech next year, with 69% expecting to increase investment within the next two years. The speed of this transition places the UK among the most advanced global markets in this shift, though the report cautions that progress is "increasingly vulnerable to longstanding operational barriers."
According to Andrew Todd, partner at Eversheds Sutherland, AI will primarily handle routine and data-driven tasks. This shift will allow human workers to focus on higher-level responsibilities, including strategy, creativity, judgment, and customer engagement. Todd predicts that while traditional roles will evolve in the new AI-influenced environment, new specialist positions will also emerge within the sector.
This rapid change in working patterns aligns with predictions from other analysts, including McKinsey, which has outlined a future defined by "a partnership between people, agents, and robots." The report highlights that the transition towards AI is already well underway, noting McKinsey's finding that the number of job advertisements for roles vulnerable to AI's impact has decreased by 38% compared to three years ago.
Richard Lim, CEO at Retail Economics, added that the next decade will see a "profound shift in how work is carried out" across the retail industry. He anticipates that this disruption will occur in waves as retailers test, learn, and iterate generative and agentic AI technologies.
