Rapid AI-led transformation is set to reshape the UK retail workforce over the next decade, with retailers already directing 30% of digital budgets into AI and 76% planning to increase this investment as use cases scale, according to new data from law firm Eversheds Sutherland and Retail Economics.

By 2035, nearly three fifths of retail tasks across core functions could be augmented or automated by AI. The speed of this shift sets the UK among the most advanced global markets, but the Retail Workforce Reimagined report warns that progress is increasingly vulnerable to longstanding operational barriers including legacy systems, skills gaps and rising integration costs.

The report highlights Digital and Technology Operations such as online, digital and IT teams as the most exposed function in retail, with 73% of tasks capable of being AI-enabled within 10 years.

Three fifths of tasks completed by Store Operation colleagues, accounting for over half (55%) of employment in UK retail, will be impacted as AI-enabled shelf analytics, smarter stockroom management and real-time customer insight streamline routine tasks.

“AI has the potential to reshape the global retail sector. As AI increasingly handles routine and data-driven tasks, employees will be more able to focus on strategy, creativity, judgement and customer engagement. This will make retail operate in a more meaningful and customer-centric way, boosting efficiency and productivity,” commented Andrew Todd, Partner and Retail & Wholesale subsector lead at Eversheds Sutherland.

Leadership faces the slowest integration, with just over one-third of tasks suitable for AI in the next decade, although AI is expected to support scenario modelling and forecasting.

A net 94% of UK retail leaders agree AI enables more meaningful and value-added work, the highest of the five markets in the study which includes the U.S., France, Germany and the UAE, as retailers invest in upskilling to support employees transitioning into new, more analytical and customer-focused roles.

Data modelling within the report shows an acceleration in productivity gains as AI adoption deepens. Growth in sales per employee as a direct result of AI integration in job roles across UK retail is projected to rise by 4.9% annually in early adoption stages between 2025 and 2030, before increasing to 6.4% once the technology becomes embedded across operations.

Despite rising investment, UK retailers face persistent barriers that risk slowing momentum. Legacy systems remain a critical constraint for half of retailers, making integration costly and complex. Businesses also report data quality challenges and widening capability gaps, particularly around data engineering, governance and AI literacy.
 
These constraints are shaping the pace of transformation, particularly for mid-sized and smaller retailers that lack the scale to overhaul systems rapidly.

“UK retailers are accelerating their investment in AI. The next decade will see a profound shift in how work is carried out across the sector, supported by rising budgets and new use cases. Disruption will happen in waves as retailers test, learn and iterative generative and agentic AI technologies. But without tackling legacy systems and closing critical skills gaps, retailers will struggle to unlock the full gains AI offers,” commented Richard Lim, CEO at Retail Economics.