European retail sees up to €320 billion in AI value

On June 10, 2026, McKinsey and EuroCommerce described European retail as a sector where artificial intelligence is rapidly moving beyond the margins. The report Rewiring retail in Europe: The AI imperative is based on a survey of 36 retail executives, an analysis of European investment and interviews with five top executives and more than 20 experts. Its main estimate is substantial: when deployed across the value chain, AI could create €240 billion to €320 billion in economic value for European retail within five years. The important point is where the value is created. McKinsey argues that the biggest impact will not come from isolated marketing tools, but from daily decisions in pricing, purchasing, assortment management, inventory planning and logistics. Retail has low margins, many operational decisions and high dependence on execution. That is why AI may help more here than in sectors where decisions are made only a few times a quarter. The report also shows a mismatch in investment. Only 15 percent of European retailers’ AI investment goes into commercial functions, where McKinsey sees the largest opportunity. Marketing receives 44 percent and support functions receive 23 percent. Companies are therefore spending money where deployment is less risky and more visible, but not necessarily where margins are changed. The authors use the phrase AI paradox. Almost nine out of ten companies have adopted AI in some form, but a similar share has not yet seen a significant impact on financial results. Maturity is also weak. More than 80 percent of the organisations studied remain in an early or developing stage of AI literacy and use. Only three percent are at the stage where AI is truly embedded in work. For company leaders, the conclusion is blunt. Buying tools is not enough. If AI is to affect profitability, it must enter the processes where price, product availability, margin and customer service speed are decided. European retail is also under pressure from data regulation, rising costs and cautious consumers. Companies that leave AI in campaigns and internal assistants may have neat demonstrations but little impact on the profit and loss statement. Terms: A value chain covers all steps from purchasing goods to selling them to the customer. The AI paradox describes companies using AI without yet seeing measurable profit. Pricing means setting prices according to demand, stock, competition and margin.

European retail sees up to €320 billion in AI value

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