What: APAC retail is leading global AI adoption, but workforce readiness and governance are lagging behind rapid technological uptake.

Why it is important: The gap between AI adoption and organisational readiness mirrors global findings that only a minority of retailers achieve scalable, sustainable results.

Asia Pacific’s retail sector is emerging as a global leader in AI adoption, with frontline employees and local technology platforms driving a rapid transformation in operational efficiency and customer engagement. Despite this momentum, a significant gap persists in workforce preparedness and organisational governance, as only a small proportion of retail workers feel equipped to navigate AI-driven changes. Much of the AI adoption in the region occurs informally, often without adequate oversight or structured support, raising concerns about compliance and the sustainability of productivity gains. Agentic AI is already delivering notable improvements in service efficiency, yet the lack of comprehensive training and clear leadership direction threatens to dilute these benefits. China’s retail market, with hundreds of millions of users engaging with AI-powered solutions, exemplifies both the scale and the challenges of this shift. The APAC experience highlights the critical need for systematic upskilling, robust compliance frameworks, and proactive leadership to ensure that the promise of AI translates into lasting competitive advantage for the retail industry.

IADS Notes: Visa’s October 2025 report highlights APAC’s rapid retail evolution through AI and digital payments, while BCG’s September 2025 analysis reveals only 36% of retail workers feel prepared for AI-driven change despite high adoption rates. Journal du Net in July 2025 documents 71% weekly AI usage among retail employees, with 15-30% efficiency gains but ongoing training and governance challenges. BCG’s June 2025 study shows unauthorised “shadow” AI usage is common, and SCMP’s December 2024 coverage of China’s 230 million retail AI users illustrates the scale and global relevance of these trends.

AI at work: Is Asia Pacific leading the way?

AI at work: Is Asia Pacific leading the way? -slideshow