What: Major US retailers are restructuring and redefining roles as AI accelerates automation and reshapes hiring practices.

Why it is important: Financial markets are rewarding bold AI strategies, but only companies that successfully scale and integrate AI realise lasting value.

The rapid adoption of artificial intelligence in the US is already transforming workforce management and organisational structures in retail, with companies like Walmart and Accenture reducing hiring and accelerating targeted layoffs to adapt to new technological realities. This shift is particularly pronounced for entry-level and white-collar roles, as AI-driven automation and augmentation redefine job requirements and productivity expectations. While some leaders, such as Walmart’s Doug McMillon, emphasise that AI will impact virtually every job, others warn of a looming “jobs apocalypse” that could see half of entry-level white-collar positions disappear. Despite these concerns, the retail sector’s experience over the past year suggests a more nuanced reality: leading retailers are leveraging AI to enhance productivity and upskill employees rather than simply replacing them. The financial markets are closely watching these developments, rewarding companies that demonstrate bold, effective AI strategies, as seen in Alibaba’s recent stock surge. However, the challenge remains for most retailers to scale AI initiatives successfully and balance technological innovation with human capital investment, ensuring operational resilience and sustainable growth. 

IADS Notes:  In September 2025, research from BCG and the Stanford Digital Economy Lab confirmed that only 36% of retail workers feel prepared for AI-driven change, with generative AI most disruptive for entry-level roles, emphasising augmentation over replacement (“AI is moving faster than your workforce strategy. Are you ready?”; “Canaries in the coal mine? Six facts about the recent employment effects of artificial intelligence”). March 2025 data from Forbes highlighted leading retailers achieving 4.5% annual productivity growth through strategic AI integration (“Redefining productivity in retail”). January 2025 findings from BCG underscored Walmart’s use of autonomous agents to process 850 million product data points and the sector’s focus on upskilling (“From potential to profit: closing the AI impact gap”). In September 2025, Bloomberg reported Alibaba’s stock surge following major AI investments, reflecting positive financial market reactions to ambitious AI strategies, though only a minority of companies realie substantial value (“Alibaba’s shares soar after investors buy into big AI moves”).

AI is already disrupting the job market, predictions of "apocalypse jobs" increasing in the US - French