What: The gap between AI adoption by retail leaders and frontline employees persists, with workflow redesign, leadership support, and training emerging as critical factors for successful integration

Why it is important: This gap highlights the urgent need for comprehensive training and leadership support, as only retailers who invest in both technology and people achieve sustainable productivity gains.

The integration of generative AI into retail organizations has advanced rapidly among leaders and managers, yet frontline employees lag behind, with only 51% reporting regular use. This disparity is critical, as the full value of AI is realised only when workflows are fundamentally reshaped and frontline engagement is prioritised. Companies that move beyond basic productivity gains to redesign their operations with AI report greater time savings, sharper decision-making, and more strategic work for employees. However, the transformation is not without challenges: only a third of employees feel properly trained, and just a quarter receive strong leadership support, leading many to seek unauthorised tools and increasing operational risks. The emergence of AI agents offers new opportunities, but adoption remains low and understanding limited. As AI becomes more integrated, concerns about job security rise, especially among leaders and managers. The path forward requires robust training, leadership commitment, and a focus on upskilling to ensure that AI augments rather than threatens the workforce, enabling both operational excellence and employee satisfaction. 

IADS Notes:  A persistent divide in AI adoption between retail leaders and frontline employees was documented in June 2025, with only 51% of frontline staff regularly using AI, despite higher uptake among managers (BCG, June 2025). Success in closing this gap has been linked to leadership engagement, access to appropriate tools, and comprehensive training, as highlighted in both June and April 2025, where only 10% of retailers were able to scale AI initiatives effectively (BCG, June 2025; BCG, April 2025). CEO leadership and a balanced approach between automation and human expertise have driven notable productivity gains and improved employee satisfaction (BCG, April 2025). The rapid pace of AI-driven transformation has left many retail workers feeling unprepared, with only 36% feeling ready for AI-driven change, emphasizing the need for systematic upskilling and human-centric strategies (BCG, September 2025). The rise of Agentic AI is redefining employee roles and customer experience, with 71% of employees using these tools weekly and measurable improvements in service efficiency and retention (Journal du Net, July 2025). However, as of January 2025, only a minority of retailers have successfully scaled AI agents, underscoring the ongoing need for robust training, leadership support, and risk management (Hugging Face, January 2025).

AI at work: Momentum builds, but gaps remain 

AI at work: Momentum builds, but gaps remain - slideshow