What: Gartner predicts significant AI-driven organisational changes by 2029, including the elimination of 50% of middle management positions, increased employee monitoring, and AI-guided board decisions, highlighting both opportunities and challenges for the retail sector.

Why it is important: These predictions underscore the urgent need for retailers to prepare for AI's transformative impact on organisational structures, employee relations, and decision-making processes, while addressing potential risks to workforce well-being.

Gartner's strategic predictions for IT organisations through 2029 outline a transformative roadmap for AI adoption in retail. By 2027, the analysis suggests that 20% of organisations will use AI to flatten their organisational structure, potentially eliminating more than half of current middle management positions as AI takes over routine tasks like scheduling and performance monitoring. The predictions also indicate that by 2028, 40% of large enterprises will deploy AI to measure employee behaviors and moods for profit optimisation, while 70% of organisations will implement anti-digital policies to address technological immersion and social isolation concerns. The forecasts extend to corporate governance, with 10% of global boards expected to use AI guidance for material business decisions by 2029. Additionally, the predictions address workplace privacy, with 70% of new employee contracts expected to include AI-related licensing and usage clauses by 2027, reflecting the growing intersection of AI technology with workforce management.

IADS Notes: Gartner's predictions about AI's impact on organisational structures and workforce management align with current industry trends and challenges. The forecast that 20% of organisations will eliminate half of their middle management positions reflects existing preparedness gaps, as evidenced by Deloitte's January 2024 finding that only 20% of executives feel equipped to address AI skills needs. However, the technology's potential for positive impact is demonstrated by Google Cloud's October 2024 survey, showing 87% of retail executives reporting significant revenue increases after AI adoption . Organisations are actively addressing these challenges, as seen with IKEA's April 2024 initiative to train 3,000 workers and 500 leaders in AI literacy. This aligns with LinkedIn CEO's December 2023 emphasis on redefining jobs as skill collections rather than titles, suggesting a fundamental shift in how organisations will structure and manage their workforce in response to AI integration.

Gartner unveils top predictions for IT organizations and users in 2025 and beyond