What: CEOs must lead a comprehensive transformation in how retail organisations integrate AI, focusing on reskilling, workflow redesign, and talent strategy.

Why it is important: Addressing the AI talent gap and fostering a culture of learning are critical for organisations to adapt and thrive, as evidenced by recent findings.

AI is rapidly transforming the retail industry, challenging traditional notions of performance, hiring, and collaboration. While most retail employees now use AI tools regularly, a significant readiness gap persists, with many lacking adequate training and understanding of how technology is reshaping their roles. CEOs are called to move beyond simply deploying new tools and instead reimagine the very nature of work, collaborating closely with HR and IT leaders to drive large-scale reskilling and workflow redesign. Attracting and retaining digital talent has become increasingly competitive, as skilled professionals prioritise meaningful work, flexibility, and clear learning paths over brand prestige. The traditional talent pyramid is evolving, with middle management roles shifting toward coaching and integration of digital capabilities, while junior staff are upskilled to meet new demands. To close the AI talent gap, retail organisations must invest in expansive upskilling programs, build cross-functional alliances, and lead with transparency to foster trust and adaptability. These steps are essential for creating a workforce capable of thriving in an AI-driven future.

IADS Notes: The transformation of work driven by AI in retail is underscored by a persistent readiness gap, as highlighted in BCG’s “AI at work: Momentum builds, but gaps remain” (June 2025), where only 36% of employees felt adequately trained despite widespread AI adoption. This gap is compounded by the need for CEO leadership and cross-functional collaboration, with “When companies struggle to adopt AI, CEOs must step up” (BCG, April 2025) revealing that only 10% of retailers successfully scale their AI initiatives, emphasising the importance of coordinated upskilling and engagement. Attracting and retaining digital talent remains a significant challenge, as shown in Forbes’ “AI talent: meet the guardians of the AI algorithms” (June 2025), which notes that AI professionals seek meaningful work and flexibility, prompting retailers like IKEA to invest in comprehensive literacy programs. The evolving talent pyramid is further complicated by the restructuring of middle management, with The Economist’s “Bonfire of the middle managers” (October 2025) illustrating that while automation is reshaping roles, effective middle managers are still essential for driving technology adoption and operational resilience. Finally, BCG’s “Skills-based organisations aren’t reaching their potential. Here’s how they can succeed” (July 2025) confirms that systematic upskilling, cross-functional alliances, and cultural transformation are critical for closing the AI talent gap and building adaptable, skills-based organisations capable of thriving in an AI-driven future.

As AI changes work, CEOs must change how work happens