IKEA Is Reskilling Employees Instead of Laying Them Off
IKEA deployed an AI chatbot called Billy to handle first-level customer service interactions, and it now manages roughly 57% of customer conversations without human involvement. But rather than using the efficiency gains to cut headcount, the company analysed the remaining 43% of queries that still required a human touch and found that many were advisory in nature — customers seeking guidance on interior design for homes and commercial spaces. IKEA reskilled parts of its customer service workforce, transitioning employees into interior design consultants, and introduced a paid consultancy model that generated an estimated €1 billion in new revenue within its first year. The approach stands in contrast to broader industry trends: a recent survey of 2,400 C-suite leaders found that 60% of enterprises intend to lay off employees who can't or won't use AI. But as KPMG's Chad Seiler has warned, gains from simply replacing staff with AI are unlikely to be durable. IKEA's experience suggests that the impact of AI may depend less on the technology itself and more on how companies choose to deploy it — as a replacement for jobs, or as a catalyst for new ones.