Rise of the robots: New research looks at AI/automation in retail
UK retail is set to lose over half a million jobs to robots, with IT execs in the sector expecting up to one in five jobs to be replaced by AI/automation within five years, according to the 2019 Harvey Nash/KPMG CIO Survey.
44% of IT leaders report that using automation to improve efficiencies is one of the big issues that their board is looking for tech to address. The research, which analyses responses from over 3,600 organisations with a combined technology spend of over $250 billion, also shows that 67% of UK retail respondents believe new jobs will compensate for job losses to AI/automation. This combined effect of job losses in traditional areas and new job growth requiring new digital skills is likely to lead to a significant reorganisation of roles across retailers.
A quarter of IT leaders are piloting or implementing Robotic Process Automation (RPA) (25%) and/or AI/machine learning (27%). Those testing out RPA reported that they are more likely to have higher profitability, better operational efficiency, better time to market, and better customer experience.
“If you consider the radical changes happening in the high street, and the explosive growth of online commerce, it’s clear the retail sector is undergoing massive change,” says Albert Ellis, CEO at Harvey Nash.
“But, while much of the narrative has been around what jobs might be lost, the real battle for success will be around which retailers will be able to attract and develop the right skills and talent for this new automated, digital world. It has never been more important for boards and HR leaders to think about the impact of these trends on their strategy.”
