IKEA Uses AI to Reskill 8,500 Employees Instead of Cutting Jobs

IKEA has shown that artificial intelligence can be a catalyst for workforce transformation rather than workforce reduction. After introducing its AI-powered customer service assistant, Billie, the global home furnishings retailer chose to retrain and redeploy approximately 8,500 customer service employees instead of eliminating jobs. The initiative demonstrates how businesses can use AI to automate repetitive work while creating new opportunities for employees to contribute in more strategic and customer-focused roles.

Launched in 2021, Billie was designed to manage routine customer enquiries such as order tracking, store opening hours, stock availability, and return policies. Over time, the AI assistant has become increasingly capable, with its resolution rate improving from 47% during its early years to 74% today. As AI assumed responsibility for repetitive interactions, IKEA invested in reskilling employees and transitioning them into higher-value positions, including remote interior design, complex customer support, and sales advisory roles.

Rather than viewing AI as a tool for reducing costs through layoffs, IKEA adopted a long-term workforce strategy centred on learning, adaptability, and employee growth. By combining automation with reskilling, the company has enhanced customer service quality while equipping its workforce with new capabilities that are increasingly valuable in a digital-first business environment. This approach has also helped strengthen customer relationships and create additional revenue opportunities through specialised advisory services.

As organisations around the world continue to integrate artificial intelligence into their operations, IKEA’s strategy offers a compelling example of responsible AI adoption. By investing in people alongside technology, the company has demonstrated that innovation and workforce development can go hand in hand, creating sustainable value for employees, customers, and the business alike.