December 19, 2025
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Will AI Change the Face of Front-Line Retail Work?
Nested within a broader discussion of how the proliferation of artificial intelligence (AI) tools is driving employment and wage growth — at least, in industries which show exposure to AI in the first place — Forbes contributor Richard Kestenbaum discussed how recent data provided by Teneo might directly impact the nature of front-line retail work.
“If productivity is really increasing, then work will change and so will expectations of workers. People will be expected to do more faster and make better decisions and that usually requires new skills. That’s the exciting part: workers can become dramatically more capable. It’s also the scary part: the baseline skill level for many jobs may rise and workers who can’t get access to training will fall behind,” Kestenbaum began.
“The Teneo report says that customer-facing AI projects are among the top AI areas for return on investment. For retailers, that’s the store, so you can expect that retailers are going to push AI to the store level and right into the hands of store associates,” he added, pivoting to outline two distinct likelihoods emerging from that premise.
Entry-level retail store jobs could be harder to land: According to this line of thinking, should AI tools be deeply integrated into daily store operations, retail sales associates will need to possess associated skills in order to land, and keep, entry-level positions. “If AI-enabled store associates deliver better service and earn higher wages, retailers will need training programs, stronger hiring filters and incentives for motivation and skill. That may make the job of store associates a higher-skill role. That helps consumers and can reduce turnover but it may also raise barriers for workers who historically treated retail employment as an accessible entry job,” Kestenbaum wrote.
But, in-store service standards from the customer vantage point could improve: As Kestenbaum noted, the most common frustrations cited by shoppers — notably store staff who have difficulty locating product, who are unaware of current inventory matching customer needs, or who are simply less-than-informed than the customer themselves — could be appreciably mitigated by the inclusion of AI-based assistance at the ready in brick-and-mortar store settings.
Retail Workers May Fear Job Losses, Due to AI and Other Factors
And according to a survey conducted early this year by AI-powered SEO platform Chadix (via Chain Store Age), it appears that retail workers themselves do have some degree of fear surrounding potential job cuts in the industry due to AI influence.
Among that survey’s findings:
- More than one-third (40%) of respondents who are retail workers indicated that they fear AI automation will lead to a termination of their jobs. Only workers in the manufacturing sector (45%) exhibited more anxiety over this concern.
- More than half (60%) anticipate that there will be major industry disruption within five years.
There may be some basis for serious concern, although AI automation may be only one factor at play. According to the most recent Challenger, Gray & Christmas jobs data, the U.S. retail sector shed 91,954 jobs in 2025 as of early December — up a staggering 139% from the 38,403 positions lost during the same time frame in 2024. However, the Challenger report lays the motivation for these job cuts on “adjust[ed] workforce levels amid softening demand, tariff uncertainty, and changing consumer preferences,” rather than at the feet of AI automation or integration.
BrainTrust
Frank Margolis
Executive Director, Growth Marketing & Business Development, Toshiba Global Commerce Solutions
Gary Sankary
Retail Industry Strategy, Esri
Lisa Goller
B2B Content Strategist
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Discussion Questions
Is Kestenbaum correct to suggest that the nature of front-line retail work is about to undergo a skills-requirement upgrade? If so, who benefits, and who loses out?
What unforeseen benefits and consequences do you anticipate becoming a standard part of the retail experience, for both staff and shoppers, as AI integration becomes a given on the front lines of physical retail?
Should retail workers be as fearful, or anxious, as the statistics suggest regarding their job security? Is AI the largest threat, in the long term?
Poll
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Yes, AI will change some aspects of work. But the idea it will replace store staff in serving customers is a complete nonsense. Most consumers want to be served by real people, not by robots. As for current employment levels in retail, that’s more a function of economics than of AI.
You are absolutely correct. But what will management think? In retail, the value of the store staff is already undervalued/
AI is yet another tool to help improve store efficiency. Just like when inventory management went from a clipboard to a handheld scanner, this is merely an incremental step that requires basic tutelage and training.
I think Richard is correct that the nature of front-line retail work is shifting as AI tools enter stores — but not in the sense that every retail associate suddenly needs a deep technical skill set to survive. What we’re really seeing is a redistribution of tasks, where AI takes on repetitive, data-intensive work (such as inventory, forecasting, pricing, and reporting) while humans remain central to customer engagement, problem-solving, and service delivery. AI can elevate the work by automating tedious tasks and providing real-time insights that improve responsiveness and decision-making, but it doesn’t replace the basic human skills most frontline roles demand. In fact, many retailers report that AI tools make employees’ jobs easier and more satisfying and can help with retention and career progression — especially for those willing to use AI as a copilot rather than a replacement.
Those who stand to benefit most are the associates and managers who embrace these tools and the retailers that invest in sensible training. For newer managers and supervisors, gaining fluency with AI-augmented workflows and insights is a real opportunity — it enhances their decision quality. It lets them focus more on leadership and customer experience rather than spreadsheets and back-room reporting. In contrast, the traditional fear that AI will obliterate frontline retail jobs is overstated; most projections suggest task-level transformation rather than wholesale job elimination, with significant portions of roles only partially automated and human skills like empathy, negotiation, and conflict resolution becoming more valuable.
That said, some unforeseen benefits and risks will become standard parts of the retail experience. Benefits include freeing staff from mundane chores so they can deliver higher-touch service, personalized assistance, and proactive problem resolution — all of which can boost customer satisfaction. On the flip side, poorly implemented AI could degrade the employee experience or reinforce “deskilling” if associates are reduced to monitoring screens rather than interacting with customers. But the biggest threat in the long term isn’t AI per se, it’s a lack of proactive training and thoughtful integration. Retailers that treat AI as a tool to augment human capability — not a reason to cut labor — will likely see growth in both customer engagement and staff career pathways.
Every industry will upskill with AI. Walmart and Target invested in AI to empower store teams with tools to efficiently find items, check prices and register customers in loyalty programs.
Yet, upskilling has always been an option for retail store. To go beyond the lowest cost/most hours/willing to work holidays.
How many consistently search for the more career minded staff (marketing, business econ, psychology majors who want to learn the retail business). Those who want to learn, will grasp the proprietary tech.
Kestenbaum is right that front-line retail work is evolving, but this shift is more about upskilling than outright job loss. AI will change how associates work by reducing friction, improving product discovery, and enabling more personalized service. The real winners will be customers and associates who receive the right training and support.
The risk isn’t AI itself, but uneven access to enablement. Without proper training, entry-level roles could become harder to access. AI is reshaping the mechanics of retail work, not eliminating the work altogether. Tasks will shift, decisions will be augmented, and expectations will rise, but the need for human judgment, empathy, and in-store guidance remains. Used thoughtfully, AI can elevate the in-store experience rather than replace it.
The debate misses the fundamental skill shift. AI will not replace store associates; it will change which customers need them. Kestenbaum’s right about rising skill requirements, but not because associates need to master AI tools. The upgrade comes from serving customers who choose to shop in-store for categories where physical presence adds value, such as complex purchases, immediate needs, and experience-driven decisions. Physical stores aren’t disappearing, but their role is becoming more specialized. The skill requirement is to become invaluable in purchases where human expertise and physical evaluation actually matter.
AI for front line retail works best in concert with the retail associate. Give workers an earpiece connected to an AI with real-time access to inventory, product specs, and supply chain data—suddenly they’re delivering exceptional service instead of saying “let me check the back.”
When customers walk into a store with a question, their first instinct is to find a human. That’s not changing. AI can make those interactions better by eliminating information gaps, but it can’t replace the human judgment, problem-solving, and rapport-building that make retail service work.
The job changes? Absolutely. Job elimination? I don’t see it.
People are worried about AI being a disrupter. We don’t have to wait five years. It already has. As for the concern about jobs, there will no doubt be some displacement. All of my research and interviews with executives indicate minimal job losses, although jobs will change. Depending on how AI is used, a store employee’s responsibilities will increase. That may require a higher capability for entry-level jobs.
Overall, I expect AI will enhance the customer AND employee experience. There are exciting times ahead for retail!
100% agree. AI is disrupting many industries at varying stages. This will continue. Jobs will indeed change in all sectors, and retail is no exception. And I think you peg it correctly in that there may be a higher capability needed for entry-level jobs. But in the end, this should create a more empowered and knowledgeable staff that better serves customers.
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Yes, AI will change some aspects of work. But the idea it will replace store staff in serving customers is a complete nonsense. Most consumers want to be served by real people, not by robots. As for current employment levels in retail, that’s more a function of economics than of AI.
You are absolutely correct. But what will management think? In retail, the value of the store staff is already undervalued/
AI is yet another tool to help improve store efficiency. Just like when inventory management went from a clipboard to a handheld scanner, this is merely an incremental step that requires basic tutelage and training.
I think Richard is correct that the nature of front-line retail work is shifting as AI tools enter stores — but not in the sense that every retail associate suddenly needs a deep technical skill set to survive. What we’re really seeing is a redistribution of tasks, where AI takes on repetitive, data-intensive work (such as inventory, forecasting, pricing, and reporting) while humans remain central to customer engagement, problem-solving, and service delivery. AI can elevate the work by automating tedious tasks and providing real-time insights that improve responsiveness and decision-making, but it doesn’t replace the basic human skills most frontline roles demand. In fact, many retailers report that AI tools make employees’ jobs easier and more satisfying and can help with retention and career progression — especially for those willing to use AI as a copilot rather than a replacement.
Those who stand to benefit most are the associates and managers who embrace these tools and the retailers that invest in sensible training. For newer managers and supervisors, gaining fluency with AI-augmented workflows and insights is a real opportunity — it enhances their decision quality. It lets them focus more on leadership and customer experience rather than spreadsheets and back-room reporting. In contrast, the traditional fear that AI will obliterate frontline retail jobs is overstated; most projections suggest task-level transformation rather than wholesale job elimination, with significant portions of roles only partially automated and human skills like empathy, negotiation, and conflict resolution becoming more valuable.
That said, some unforeseen benefits and risks will become standard parts of the retail experience. Benefits include freeing staff from mundane chores so they can deliver higher-touch service, personalized assistance, and proactive problem resolution — all of which can boost customer satisfaction. On the flip side, poorly implemented AI could degrade the employee experience or reinforce “deskilling” if associates are reduced to monitoring screens rather than interacting with customers. But the biggest threat in the long term isn’t AI per se, it’s a lack of proactive training and thoughtful integration. Retailers that treat AI as a tool to augment human capability — not a reason to cut labor — will likely see growth in both customer engagement and staff career pathways.
Every industry will upskill with AI. Walmart and Target invested in AI to empower store teams with tools to efficiently find items, check prices and register customers in loyalty programs.
Yet, upskilling has always been an option for retail store. To go beyond the lowest cost/most hours/willing to work holidays.
How many consistently search for the more career minded staff (marketing, business econ, psychology majors who want to learn the retail business). Those who want to learn, will grasp the proprietary tech.
Kestenbaum is right that front-line retail work is evolving, but this shift is more about upskilling than outright job loss. AI will change how associates work by reducing friction, improving product discovery, and enabling more personalized service. The real winners will be customers and associates who receive the right training and support.
The risk isn’t AI itself, but uneven access to enablement. Without proper training, entry-level roles could become harder to access. AI is reshaping the mechanics of retail work, not eliminating the work altogether. Tasks will shift, decisions will be augmented, and expectations will rise, but the need for human judgment, empathy, and in-store guidance remains. Used thoughtfully, AI can elevate the in-store experience rather than replace it.
The debate misses the fundamental skill shift. AI will not replace store associates; it will change which customers need them. Kestenbaum’s right about rising skill requirements, but not because associates need to master AI tools. The upgrade comes from serving customers who choose to shop in-store for categories where physical presence adds value, such as complex purchases, immediate needs, and experience-driven decisions. Physical stores aren’t disappearing, but their role is becoming more specialized. The skill requirement is to become invaluable in purchases where human expertise and physical evaluation actually matter.
AI for front line retail works best in concert with the retail associate. Give workers an earpiece connected to an AI with real-time access to inventory, product specs, and supply chain data—suddenly they’re delivering exceptional service instead of saying “let me check the back.”
When customers walk into a store with a question, their first instinct is to find a human. That’s not changing. AI can make those interactions better by eliminating information gaps, but it can’t replace the human judgment, problem-solving, and rapport-building that make retail service work.
The job changes? Absolutely. Job elimination? I don’t see it.
People are worried about AI being a disrupter. We don’t have to wait five years. It already has. As for the concern about jobs, there will no doubt be some displacement. All of my research and interviews with executives indicate minimal job losses, although jobs will change. Depending on how AI is used, a store employee’s responsibilities will increase. That may require a higher capability for entry-level jobs.
Overall, I expect AI will enhance the customer AND employee experience. There are exciting times ahead for retail!
100% agree. AI is disrupting many industries at varying stages. This will continue. Jobs will indeed change in all sectors, and retail is no exception. And I think you peg it correctly in that there may be a higher capability needed for entry-level jobs. But in the end, this should create a more empowered and knowledgeable staff that better serves customers.