What: AI adoption in retail is progressing gradually, transforming operations, jobs, and compliance requirements through incremental integration and practical safeguards.

Why it is important: This trend demonstrates that AI’s impact in retail is evolutionary, not revolutionary, aligning with recent findings that emphasise gradual integration, workforce adaptation, and the need for robust compliance.

The discussion around artificial intelligence often swings between utopian and dystopian extremes, but a more grounded perspective is gaining traction: AI as a “normal” technology whose adoption mirrors past technological revolutions. In retail, this means that while innovation in AI is rapid, actual adoption remains measured, as companies and employees adapt to new workflows and operational structures. The transformation is not about wholesale job losses but rather a shift in job content, with more roles focused on supervising, configuring, and controlling AI systems. This gradual integration is shaped by organisational challenges, such as the need for retraining, data readiness, and regulatory compliance, all of which slow the pace of change. Risks associated with AI, including misuse and cybersecurity threats, are best managed through practical, context-driven safeguards and robust incident reporting, rather than relying solely on technical “alignment.” Regulatory measures, such as compulsory disclosure and transparency requirements, are emerging as critical elements of responsible AI deployment. The retail industry’s experience underscores that sustainable progress depends on balancing technological innovation with human oversight and compliance, ensuring that AI enhances rather than disrupts business operations.

IADS Notes: Recent developments in retail confirm that the adoption of artificial intelligence is following a measured, evolutionary path rather than a disruptive leap, echoing the argument that AI is a “normal” technology. While 87% of retailers report revenue increases and operational gains from AI, only a small fraction have successfully scaled these solutions, underscoring the slow integration process noted in March and April 2025. This gradual adoption is mirrored in workforce trends, where AI is transforming roles rather than eliminating them, with a focus on upskilling and human oversight, as highlighted in January and May 2025. Organizational adaptation remains a significant challenge, with only 10% of retailers achieving effective workflow redesign and employee engagement, as seen in June and April 2025. The sector’s experience with AI risks further validates the need for practical, context-driven safeguards and robust cybersecurity, as outlined in July 2024 and June 2025, rather than relying solely on technical alignment. Finally, the growing regulatory focus on transparency and responsible AI, including compulsory disclosure and privacy measures, is shaping compliance strategies, as demonstrated by legislative developments and consumer expectations in March and July 2025.

What if artificial intelligence is just a “normal” technology?