While retail and supply chain executives widely view AI as essential for resilience and cost optimization, most do not see AI as a total replacement for frontline labor. Instead, they struggle with an “enablement gap,” where they trust algorithms for autonomous decision-making versus upskilling workers to clean up and act on AI output.
Meanwhile, there are diverging views from executives and employees about where and how AI is used. And even when they expect to invest in AI, executives are not sure they will see the full value of it.
The tension is real, especially as shareholders pressure management to deploy artificial intelligence, including predictive and generative AI as well as agentic AI. Rising logistics costs, shrinking margins and persistent supply chain volatility, in particular, are pushing leaders toward agentic AI and machine learning for demand forecasting and inventory placement.
According to data from the Federal Reserve Bank of Atlanta, investments in AI have accelerated this year. “Overall, companies report divergent experiences with AI,” researchers from the Federal Reserve said in a recent report. “A majority invested in AI in 2025, and a much larger share expect to invest in AI in 2026. On average, business executives report labor productivity gains and anticipate further increases.”
“Strikingly, especially in light of recent slowing aggregate job growth, we find little evidence that firms have experienced or anticipate near-term AI-driven employment declines, even as AI could reshape task allocation,” the report’s authors said. “However, companies—especially larger firms—anticipate a shuffling of the workforce, with a shift away from routine clerical jobs toward more skilled technical jobs and tasks.”
The researchers found that 80 percent of businesses polled expect to increase their investment in AI. Despite the high percentage, 36 percent of executives polled in the retail industry by Accenture expect “moderate value” added to their business from deploying AI. But that could be misleading. In a separate McKinsey & Co. AI report, researchers found that the industry executives who didn’t report “enterprise-level [earnings] impact do say their organizations are seeing financial impact from specific business functions’ use of AI. Respondents most frequently report cost reductions from AI use in supply chain management, service operations and manufacturing.”
Meanwhile, frontline roles are changing due to AI. Warehouse workers and store associates are moving from manual tasks to validating or correcting AI recommendations. There have also been reductions in routine administrative and clerical tasks balanced by an increased demand for skilled technical and analytical positions, according to analysts.
And then there’s the disconnect between executive enthusiasm for AI and actual frontline usage and tool absorption at the store or warehouse floor level. Even among workers, there are divisions. According to data from the Pew Research Center, 52 percent of workers said they are worried about AI while 33 percent said they are overwhelmed by the technology. Just 29 percent said they were excited about using AI.
The sentiment can be seen across most industries. Separate data from Gallup and Pew show that 49 to 58 percent of American workers report they “never use” AI at work, with 81 percent considered being non-regular users. And a recent CNBC survey found that 65 percent of workers polled have avoided using AI for moral, environmental or privacy reasons, while 51 percent of workers believe widespread AI use at work will only or mostly benefit business owners and executives rather than staff.
Meanwhile, company leaders are standing firm in their support. In a Relex Solutions supply chain report that polled 514 global retail and manufacturing leaders, researchers found executives are shifting from AI experimentation to core operational decision support. Sixty-seven percent of leaders polled report increased confidence in AI for supply chain decisions, while 54 percent of those polled said they prefer AI recommendations with human finalization. Only 10 percent trust fully autonomous AI.
Regarding adoption, 47 percent said they are using AI for inventory and supply optimization, while 41 percent said they are using it for logistics and routing.
Moving forward, as AI investment and adoption continue, worker sentiment may change. Executives may start to see AI’s value as they work out the kinks. But one thing is for sure: AI is not going anywhere.
