Ikea has taken a different route in the AI era, using automation not to cut jobs but to elevate its human staff. When a customer in Helsingborg asked for a custom-cut hexagonal countertop, senior sales specialist Madeleine Barr and colleague Melanie Lindell solved the puzzle by extending the overhang, a solution a bot could not have devised.
AI handles the basics
In 2021 the retailer launched Billie, an AI-powered chatbot named after the iconic Billy bookcase. Billie quickly took over routine enquiries such as opening hours and pet policies, assisting 47% of users in its first two years and 74% today.
Reskilling the workforce
Instead of laying off the call-centre staff whose tasks were automated, Ikea retrained roughly 8,500 employees to become design advisors. The training, lasting five to six weeks, covers digital room-planning tools, product knowledge and communication techniques. New hires now guide customers through measurements, colour choices and even the emotional aspects of a remodel.
"It's a lot of angles," Madeleine Barr said while working out the irregular countertop.
One advisor, Richard Richardson from Sheffield, recalled that the transition removed any fear of redundancy. "I never felt apprehensive," he explained, adding that human advisors can spot sales opportunities that a bot would miss.
Impact on sales and customer satisfaction
The remote-sales centres, operating in all 31 countries where the Ingka Group has a presence, have become Ikea's fastest-growing sales channel. Year-on-year growth has hovered between 15% and 20%, generating €1.25 billion in the last fiscal year, up from €1.08 billion the year before. Customer happiness scores have risen to 89% from 60% before Billie's rollout.
Future outlook
While the World Economic Forum estimates that 92 million jobs could be displaced by AI by 2030, Ikea's model shows how automation can create higher-value roles. Professor Prasanna Tambe of Wharton notes that the company leverages skill adjacencies, moving workers from answering basic queries to providing personalised design advice.
Looking ahead, Ikea plans to keep human advisors as a free service, even as it expands automated tools on its website. The company's ability to blend AI efficiency with human expertise may set a template for retailers facing similar pressures from online rivals such as Wayfair and Amazon.