How AI is changing the rules of the game and generating real value in retail

7 June 2026

Lidia Oktaba

McKinsey and EuroCommerce report, “Rewiring retail in Europe: The AI imperative,” confirms that artificial intelligence is now a key driver of competitiveness rather than just another innovation. To fully capture the potential of AI – estimated at €240–320 billion for European retail – retailers must transition from isolated pilots to an end-to-end transformation of processes and organizational structure. The prize is an EBITDA increase of 4 to 10 percentage points, which challenges companies not just to implement AI, but to do so faster and more effectively than the competition.

Key insights:

AI can generate €240–320 billion in value for European retail over the next five years.
End-to-end transformation can improve retailer EBITDA by 4–10 percentage points.
The greatest value-creation potential currently lies in commercial domains, such as pricing, promotions, supplier negotiations, and assortment optimization.
Scaling AI, rather than mere experimentation, has become the primary challenge for retailers.
In the coming years, up to 75% of retail roles may be redefined, requiring organizations to invest in new capabilities and restructure how work is done.

– For modern retailers, AI is no longer an add-on to digital transformation; it is becoming one of its primary drivers – says Dariusz Stolarczyk, Strategic Advisor at Exorigo-Upos – The greatest competitive advantage will be gained by those who do not limit themselves to isolated pilots but combine AI with a real transformation of processes, capabilities, and the operating model.

Why has AI become a necessity in retail today?

Retail competitiveness now depends on the ability to adopt AI across the entire value chain – from customer interaction to supply chain optimization. The industry, characterized by high operational complexity and pressure for efficiency, is an ideal environment for AI-driven solutions. However, success does not depend on the number of tools deployed, but on how effectively technology’s potential is translated into improved daily operations, decision-making processes, and real business results.

Where is AI creating the most value in retail today?

Primarily where it directly impacts revenue, margins, and productivity. While AI solutions support marketing, supply chain, and omnichannel operations, commercial domains represent the key interface between technology and business performance. In these areas, artificial intelligence supports critical decision-making regarding:

Dynamic pricing and promotional strategies.
Assortment optimization and local localization of offers.
Supplier negotiations.
Replenishment and stock allocation.
Hyper-personalization and product recommendations.

Thanks to AI, retailers will not only monetize demand better but also gain the ability to react instantaneously to changing consumer behaviors and permanently improve organizational efficiency.

The trap of underinvesting in key areas

The “Rewiring retail in Europe: The AI imperative” report also offers a surprising conclusion: the greatest value of AI lies in commercial domains, yet only a small fraction of firms prioritize investment in this area. Most prefer to invest in marketing and support functions, where implementations are simpler but have a smaller impact on the bottom line. This could prove costly in the future.

If a retailer does not create its own “AI value map,” it risks misallocating capital toward areas of low strategic significance. Meanwhile, pricing, promotions, merchandising, and buying form the foundation of competitive advantage. Furthermore, benefits from AI will increasingly be reinvested into price competitiveness – companies that ignore this potential risk losing their position not only operationally but also in terms of pricing power.

Why is the number of use cases not enough?

Because the problem in retail today is not a lack of ideas, but a lack of effective scaling. Many organizations implement dozens of use cases, but only a small fraction reach operational maturity. This results in the dissipation of resources, “AI fatigue” within the organization, and disappointing return on investment (ROI). Market leaders act differently:

They start with a clear business aspiration.
They select a few domains with the highest potential.
They build data, workflow, and accountability around them.
And only then do they scale solutions to further areas.

This is a key lesson for the industry – in retail, you do not win with AI by the number of pilots, but by the quality and consistency of implementation.

What is holding back AI in European retail?

The biggest obstacle to effective transformation in European retail is not technological limitations, but organizational barriers. AI implementation efforts most often stall due to:

Ineffective change management.
Outdated workflows that do not fit new technologies.
Data silos that hinder a full view of the business.
Technical debt and inflexible legacy systems.
Unclear decision-making authority.
A shortage of key skills in the team.

To successfully implement AI, one must rely on the six foundations of transformation highlighted by the McKinsey and EuroCommerce report:

A business-led roadmap.
Capability building (reskilling).
Modern technology infrastructure.
High-quality data.
Process restructuring.
A responsible governance model.

Retailers must also remember that AI in retail does not operate in a vacuum; it is a system of interconnected vessels. Technology is just a tool – it generates real value only when combined with reliable data and real support for the employees who use it daily.

How will AI change enterprises and employee roles?

Profoundly. Retail is evolving from digital organizations toward agentic organizations, where AI systems become active participants in decision-making and operational processes. This requires a shift from rigid, siloed structures toward agile, decentralized teams that take full ownership of key workflows.

This change concerns not only tools but the model of work itself. It is estimated that in the coming years, up to 75% of roles in retail will be significantly redefined. Automating repetitive tasks will open up space for capability development in high-value areas, such as:

Orchestration and supervision of AI systems.
Handling exceptions that require human judgment.
Strategic and relationship-based tasks.
Advanced data analysis and interpretation of system recommendations.

For example, merchandising teams, instead of wasting time on manual data consolidation, will be able to focus on category strategy and demand planning. In such cases, AI becomes a solution that allows employees to focus on work that provides a real competitive advantage.

Why is reskilling becoming so critical for retail today?

Because without it, the potential of AI will remain merely an ambition. Today, the biggest challenge for retail is not access to technology, but preparing the organization to work in a new operating model. Companies must move away from thinking of training as a one-off program and move toward continuous capability building. This involves not only “AI fluency” but also:

Critical thinking.
Collaboration with AI systems.
Interpretation of recommendations.
Understanding exceptions.
Faster decision-making based on data.

Reskilling should encompass nearly every role – from merchandisers and replenishment specialists to logistics and HR managers. Organizations that neglect to rebuild their capabilities risk having their innovative technologies remain as unutilized capital.

What is agentic commerce and why is it a key growth direction for retail?

Agentic commerce is a reality where artificial intelligence does not just help a customer search for a product, but becomes an active participant in the entire purchasing process – influencing discovery, offer comparison, selection, and, ultimately, the transaction itself.

We are facing the next stage of market evolution. According to forecasts, this transformation will take place in three waves:

GEO (Generative Engine Optimization): optimizing brand and product visibility in AI environments.
AI-orchestrated commerce: where AI supports the customer in choosing, purchasing, and receiving the product.
Autonomous commerce: where some purchases may be performed by agents without active user participation.

Ignoring this trend carries a huge risk for retailers. If they do not become “agent-ready,” they may gradually lose direct contact with the customer and be relegated to the role of fulfillment back-end, competing mainly on price and logistics. On the other hand, leaders who are the first to build “AI-native” experiences can assume the role of orchestrators, strengthening loyalty and margins.

How can organizations prepare for this change and gain an advantage?

The most important step is moving from fascination with technology to hard-nosed business execution. An effective action plan should include several steps:

Developing an AI value map for key business domains.
Concentrating capital on implementations with the fastest impact on EBITDA.
Consolidating data, modernizing technology architecture, and implementing governance.
Deeply restructuring workflows instead of superficially adding AI to old schematics.
Investing in reskilling and transforming the organization toward a “human + AI” model.
Auditing the company’s readiness for the realities of agentic commerce.

The issue of lasting market advantage does not arise from merely possessing AI tools, but from their deep, systemic integration with the unique specifics of the firm’s processes, store operations, and the customer experience.

Summary

European retail is entering a phase where AI is becoming one of the primary conditions for corporate competitiveness. The greatest value can be generated today in commercial domains, but only if the company can transition from isolated pilots to full organizational transformation. The winners will not be the retailers who launch the most pilots, but those who most quickly translate AI solutions into better decisions, stronger margins, and more efficient business operations.

FAQ

How much value can AI generate for European retail?

Estimates point to €240–320 billion in value over five years, with an EBITDA improvement of 4–10 percentage points.

Where does AI give retailers the highest return?

Most strongly in commercial areas, such as pricing, promotions, supplier negotiations, merchandising, and assortment optimization.

Why do many firms still not see full ROI from AI?

Because the problem is usually not the technology, but a lack of scaling, poor change management, misaligned workflows, and a shortage of capabilities.

What is agentic commerce?

It is a commerce model where AI increasingly influences product discovery, offer comparison, recommendations, and transaction finalization.

Will AI change retail employee roles?

Yes. In the coming years, a large portion of roles will be redefined, and employees will more frequently supervise, interpret, and orchestrate AI system operations rather than performing exclusively manual tasks.