What: Generative AI serves as a productivity-enhancing tool that both augments existing capabilities and enables workers to tackle previously unattainable tasks.

Why it is important: As retail undergoes digital transformation, understanding GenAI as an 'exoskeleton' rather than a replacement technology helps organisations better implement and leverage its potential while maintaining essential human elements.

Generative AI is emerging as a transformative force in retail, functioning as an 'exoskeleton' that enhances worker capabilities rather than replacing human input. Early implementations show that GenAI not only increases productivity by enabling employees to work faster and more efficiently but also empowers them to tackle tasks previously beyond their scope. While the technology may reduce the need for certain roles, its most significant impact lies in creating new opportunities and enhancing existing positions. The human element remains crucial, particularly in areas requiring empathy, ethical judgment, and relationship building. This evolution suggests a future where GenAI serves as a powerful tool that amplifies human capabilities while preserving the essential interpersonal aspects of retail operations.

IADS Notes: According to our database, retail's experience with GenAI confirms this 'exoskeleton' concept. In February 2025, research showed that 87% of retailers implementing AI witnessed revenue increases of 6% or more, while achieving 15-30% improvements in customer service efficiency. However, January 2025 data revealed that only 10% of companies successfully scale their AI applications, highlighting the importance of proper implementation. IKEA's April 2024 initiative to train 3,000 workers in AI literacy demonstrates how retailers are preparing their workforce to leverage this technology effectively, while maintaining a human-centric approach to adoption.

Gen AI's “Exoskeleton ” will spark a new era of productivity and talent growth