How AI is reshaping the fashion store associate role in 2025

The annual NRF Big Show in New York City has always been a bellwether for fashion and retail innovation, but this year’s gathering marked a decisive shift in how the industry views Artificial Intelligence.

Moving beyond the experimental phase of 2024, retailers are now focused on scaling AI solutions and measuring their concrete value – particularly in reshaping the crucial role of store associates.

This evolution comes at a critical moment for fashion retail. According to the BoF-McKinsey State of Fashion 2025, in-store sales growth is forecast at just 1-2% across key markets in 2025, pushing retailers to find new ways to differentiate their brick-and-mortar experience.

The report reveals that 75% of shoppers are likely to spend more after receiving high-quality service from store personnel. Yet satisfaction with store staff interactions lags behind other aspects of the shopping experience by up to 25 percentage points.

Bridging the service gap with AI

Leading retailers are discovering that AI can enhance rather than replace the human element of shopping. At NRF 2025, Microsoft and Avanade showcased their Shopper Copilot solution, demonstrating how AI can power contextual, conversational experiences between staff and customers.

Rather than measuring success through traditional efficiency metrics alone, retailers are now tracking AI’s impact on customer loyalty, basket size and satisfaction scores.

This shift towards “agentic AI” – systems that can operate independently to support staff – is particularly relevant for luxury fashion retailers. As Marcos Suárez, Europe retail lead at Avanade, notes:

“By lowering the adoption burden on the human workforce through fully automating workflows or less cumbersome training, new forms of AI are more likely to be embraced.”

Practical applications emerging in fashion retail include:

Smart clienteling: AI-powered apps that provide store associates with real-time customer insights and personalised product recommendations. The BoF-McKinsey report highlights how Kering’s Luce app has boosted average order values by 15-20% by enabling more informed customer interactions.

Automated task management: By using technologies like RFID and robotics for inventory tasks, retailers can free up staff time for customer service. According to BoF-McKinsey analysis, correct implementation of RFID can reduce labour hours on inventory by 10-15%.

Personalised learning: AI-powered training platforms deliver bite-sized, relevant content to staff. Reiss recently partnered with AI learning platform Thrive to enhance employee development and create a more collaborative learning environment.

The human element remains crucial

Despite these technological advances, the human touch remains irreplaceable in fashion retail.

The BoF-McKinsey report reveals that human interactions are particularly important to aspirational and younger consumers, who are up to twice as likely to seek styling advice from staff compared to value-market shoppers.

This explains why upskilling and training store associates is the top priority for executives aiming to improve sales and customer engagement in 2025.

The challenge lies in delivering this training efficiently, especially given that BoF-McKinsey data shows retail workers are 1.2 times more likely to leave their jobs than the average US employee.

Creating a sustainable model

To maximise the benefits of AI while retaining talented staff, fashion retailers should focus on:

Integrated learning experiences: Combine AI-powered tools with traditional training to help staff master both technology and soft skills. As reported by BoF-McKinsey, Aritzia’s “University” programme provided over 80,000 hours of formal training last year.

Career development: Companies with strong development pathways see better retention. According to the BoF-McKinsey report, Dior achieved a 10% improvement in employee retention after launching a performance-based rewards platform offering luxury experiences.

Balanced incentives: Update commission structures to reflect modern shopping journeys. The report highlights how Nordstrom’s “Style Board” programme allows associates to earn commission on digital purchases initiated in-store.

Data-driven deployment: Use analytics to optimise staff scheduling and role allocation. Leading retailers now use footfall data and shopper-to-associate ratios to inform daily staffing decisions.

Looking ahead

As Rasmus Hyltegård, global AI lead for retail at Avanade, observed at NRF:

“AI is giving retailers the confidence to rethink core operations starting with the desired outcomes.”

For fashion retailers, this means reimagining the store associate role not as a target for replacement, but as an opportunity for enhancement.

The most successful retailers in 2025 will be those who find the sweet spot between AI efficiency and human connection.

By using technology to handle routine tasks and enhance customer interactions, while investing in staff development and engagement, fashion retailers can create a store experience that truly differentiates them in an increasingly competitive market.

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