Artificial intelligence could generate between €240 billion and €320 billion in economic value for European retail over the next five years. The analysis, developed with input from McKinsey and EuroCommerce, suggests that AI is no longer an experimental tool in retail but a core driver of business transformation. It is already reshaping how retailers manage pricing, customer experience, inventory, and supply chains across Europe.
The report emphasizes that the biggest gains from AI will come from core commercial functions such as pricing optimization, product assortment planning, promotions, and customer personalization. These areas are especially important in retail because of thin profit margins and high competition. By using AI to better predict demand and consumer behavior, companies can reduce waste, improve margins, and increase sales efficiency at scale.
Despite widespread investment in AI, the report notes that many retailers are still struggling to convert adoption into measurable financial results. While most companies have launched pilot projects or implemented isolated AI tools, only a smaller group has successfully scaled AI across their operations. This gap between experimentation and full deployment is seen as the main barrier preventing the industry from unlocking the full €320 billion opportunity.
Another major theme is the rise of “agentic commerce,” where AI systems actively assist or even automate parts of the shopping journey. Consumers are increasingly using AI tools to discover products, compare options, and make purchasing decisions, pushing retailers to adapt quickly. This shift is forcing companies to rethink how products are marketed and sold, as traditional search-and-click retail models evolve into AI-driven recommendation systems.
Ultimately, the report suggests that AI will become a defining force in European retail competitiveness. Companies that successfully scale AI are expected to gain significant advantages in profitability and customer engagement, while those that fail to adapt risk falling behind. The €320 billion figure reflects not just efficiency gains, but a broader transformation in how retail operates in an AI-driven economy.
