Welcome to ICYMI – a weekly snapshot of European news stories that have given me pause for thought. ICYMI is a chance for you to go beyond the front-page headlines and find out what other stories may be worthy of your attention. This week; automation is on the rise in retail, the cost of adopting AI; and is the UK shifting to a four-day working week?
Major world and economic events are often the catalyst for the implementation of technological innovations. Many companies, for example, rapidly embarked on digital transformation programmes in the wake of Covid lockdowns.
Might it be now that ongoing sluggish economic growth and rising costs are set to trigger a rise of automation in retail?
The Guardian reports that as response to rocketing staff costs further exacerbated by government changes to the minimum wage and national insurance contributions, UK retailers are turning to automation technologies.
Innovations such as electronic shelf labels, self-service checkouts, robot bag packers, and automated returns machines aim to enhance productivity, but they may also reduce entry-level positions in the retail sector. For example, electronic goods retailer Currys plans to implement electronic pricing in its stores to mitigate rising costs. This shift reflects a broader trend of retailers seeking technological solutions to balance operational efficiency with labour expenditures.
The price of innovation
Taking advantage of technologies such as AI can be a tricky and complex process. In Germany Handelsblatt reports that many companies are struggling to integrate artificial intelligence due to factors such as insufficient data quality, lack of skilled personnel, and unclear strategic objectives.
Overcoming these obstacles requires targeted investments in data infrastructure, employee training, and the development of a clear AI strategy. Yet for many businesses there is little investment cash available to enable companies to embark on these projects.
In the Netherlands there is growing evidence that AI is starting to have a profound impact on consumer spending. A recent study published in CustomerFirst reveals that by 2030, artificial intelligence (AI) will influence half of all purchases. This significant shift underscores the growing integration of AI in consumer behaviour, highlighting the need for businesses to adapt to this technological evolution. The research emphasises the importance of companies embracing AI to meet changing consumer expectations and maintain competitiveness in the market.
Work-life balance trumps salary for employees
One of the positive impacts of AI from an employee perspective is that it could change the way that they work and give them more free time and deliver higher levels of job satisfaction.
There are two articles this week that underline how employees are already starting to recalibrate their relationship with the world of work. The Guardian features a survey by Randstad which reveals that 83% of workers across 35 countries now prioritise work-life balance over salary, marking a significant shift in employment values post-COVID-19. This change underscores the lasting impact of the pandemic on global work culture, with many employees seeking roles that offer flexibility and align with their personal lives. Additionally, 31% of respondents reported leaving a job due to insufficient flexible working options, highlighting the growing demand for adaptable work environments. Flexible working is integral to Tyto and indeed many of our clients. It is encouraging to see more companies recognising its benefits.
Meanwhile The Independent in the UK reports that two hundred companies have permanently adopted a four-day working week with no loss of pay for staff. According to the most recent 4 Day Week Foundation update, the companies collectively employ more than 5,000 people, with nonprofits, marketing, and technology firms among the best-represented.
A considerable number of companies in sectors including Creative Arts & Design (18), Engineering & Manufacturing (12), Recruitment & HR (12), Entertainment (9), Accountancy, Banking & Finance (8) and Property Development, Trades & Construction (6) have also recently been accredited by the foundation.
Joe Ryle, Campaign Director of the 4 Day Week Foundation, said the nine-to-five, five-day work week was “no longer fit for purpose.”
“With 50 per cent more free time, a four-day week gives people the freedom to live happier, more fulfilling lives,” he said.
