AI is reshaping industries at a pace we’ve never seen before. The real challenge for many businesses isn’t just how to embrace this technology, but how to manage the human impact it brings.
Take IKEA, for example. Known globally for its home furnishings—and yes, its meatballs—IKEA introduced an AI chatbot, Billie, to handle customer inquiries. Billie took on 47% of these interactions. Yet, instead of cutting jobs, IKEA chose a different route, retraining 8,500 employees and unlocking an impressive $1.4 billion in new revenue.
This case study is a prime example of how businesses can harness AI and pair it with strategic reskilling to drive growth for both the business and its people.
The Challenge: AI and Job Displacement
Like many retailers, IKEA faced a high volume of customer service inquiries. The AI chatbot was an effective solution, reducing the need for human intervention. However, it raised a critical question: what happens to the employees whose roles are now redundant?
IKEA’s answer was forward-thinking. Rather than downsizing, the company saw potential in its workforce. While AI could handle routine tasks, human expertise was still essential in areas like improving the chatbot’s responses and driving new business initiatives.
Reskilling 8,500 Employees: A Transformative Strategy
IKEA took a bold step by reskilling 8,500 employees, transitioning them from call center roles to interior design consultants. These new roles capitalized on their customer service experience while adding new skills aligned with IKEA’s evolving business needs.
The approach was strategic. IKEA didn’t start from scratch. Instead, they identified the gap between current capabilities and the skills needed for the new roles, focusing on customer interaction, design, and sales. Other employees were retrained for more complex service tasks, ones that required empathy, creativity, and problem solving – areas where AI still lags.
The $1.4 Billion Boost
The results speak for themselves. By investing in reskilling, IKEA not only retained employees but also created new revenue streams. The $1.4 billion increase in sales is proof that AI and human talent can coexist—and even thrive together.
This underscores an important lesson for businesses: technology doesn’t have to replace people. When used wisely, AI can enable employees to focus on more valuable, strategic work that drives growth.
The Strategic Value of Reskilling
IKEA’s approach shows that reskilling isn’t just about job retention; it’s about future-proofing your business. AI should be seen as an opportunity, not a threat.
The takeaway is clear: reskilling should align with your organization’s strategic goals, fostering both engagement and financial performance.
AI and Human Skills: A Powerful Combination
IKEA’s experience proves that AI and human expertise can complement each other. While AI handles routine tasks, human talent is critical for complex and creative problem solving. Digital first businesses should focus on developing skills that enhance, rather than compete with, AI capabilities.
Reskilling Done Right
IKEA didn’t offer generic training; they designed targeted programs that addressed specific business needs. This highlights the importance of crafting reskilling programs that build on existing skills, closing the gap between current abilities and the demands of AI-driven roles.
Invest in People, Reap the Rewards
Perhaps the most powerful lesson from IKEA’s journey is the value of investing in people. While AI offers cost savings, the long-term benefits of developing human talent far outweigh those savings. IKEA’s reskilling initiative preserved jobs and turned potential disruption into a growth opportunity.
All too often businesses are keen to cut costs through sometimes dramatic headcount reduction.
We see this as a short-sighted view. Hiring great talent takes time and HR teams should be advocating for reskilling initiatives at the leadership level. When employees feel valued, empowered and are allowed to grow, the business benefits are clear.
A Path Forward in the Age of AI
IKEA’s story offers a roadmap for businesses navigating the challenges of AI adoption. Rather than viewing AI as a threat, companies can leverage it as a tool for innovation while reskilling their workforce for new demands.
The $1.4 billion result is a testament to the power of investing in people—proving that it’s not just a moral decision but a strategic one.
