AI in Retail and commerce
Retail mixes highly exposed tasks —management, inventory, basic service, analysis— with protected ones: consultative selling, the in-store experience and the personal touch. AI already recommends, predicts and automates much of operations. But when online shopping is infinite and personalised, what differentiates a store is the human part: advice, trust and an experience a screen doesn't give.
What's already happening
- Product recommendation and offer personalisation.
- Demand forecasting and inventory management.
- Automated first-line customer service.
- Price and promotion optimisation.
- Behaviour analysis and last-mile logistics.
Where the line is
AI already does
- Recommend and personalise the offer
- Forecast demand and replenish stock
- Answer frequent queries
- Adjust prices and promotions
Stays human
- Consultative selling and advice
- The in-store experience and touch
- Trust and the customer relationship
- Commercial and assortment judgment
—Key occupations
Open each occupation to see its exposure, what changes and what to do.
What to do: the 3 A's
Automate the routine
Let AI handle inventory, forecasting, recommendation and basic service. It's the repeatable operations; you reclaim time to sell and for the customer who needs more than a search box.
Augment your judgment
Use it to anticipate demand, personalise the offer and fine-tune prices. Your customer knowledge plus AI's data sell better than either alone.
Anticipate what's next
Invest in what the screen doesn't give: advice, trust and experience. When online is infinite, the winning store offers the human part —touch, judgment and relationship— no automatic recommendation matches.
The number
Retail occupations score between 29 and 65 out of 100 on AI exposure (mean ~53): high in management and administration, more protected in in-person selling.
Own aggregation over the AIOE index (Felten et al., 2021) and “GPTs are GPTs” (Eloundou et al., 2024).
Frequently asked questions
- Will AI replace shop assistants and salespeople?
- It changes the work more than removes it. AI automates inventory, recommendation and basic service, but consultative selling, trust and the in-store experience stay human. The salesperson who uses AI sells better; the one who only dispatches competes with a website.
- How can AI help a store?
- By forecasting demand to avoid stockouts and overstock, recommending products, personalising the offer, automating basic service and adjusting prices. Less operations, more time to sell and serve.
- What differentiates a store from an AI-powered website?
- The human part: expert advice, trust and the physical experience. When online recommends infinitely, the store wins by offering what a screen can't: touch, judgment and relationship.
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