How Ikea is reskilling employees instead of replacing them 

Whether you're getting fancy with Enköping cabinets or at your wits' end assembling a Billy bookcase, Ikea is here for you — with a real live human on the line.

Rather than replace customer service teams with its AI chatbot, the Swedish furniture company reskilled ~8.5k employees, per Fortune.

As companies race to automate with AI, laying off scores of employees, Ikea's investment in humans is driving revenue — notable for a company that cut labor costs by making you build your own furniture.

Billie don't be a hero

In 2021, Ikea launched its customer service bot, Billie, to handle straightforward questions about store hours and order statuses:

• The bot assisted 47% of customers within two years.
• Now, Billie helps 74% of customers.

Rather than lay off workers whose jobs Billie had taken over, the company retrained call center employees to handle elaborate requests or as interior-design sales advisors.

The resolution and sales teams now operate from 24 call centers across 31 countries, and generate significant revenue:

• 15%-20% YoY growth in sales
• $1.37B in sales last fiscal year, up from $1.17B the year before
• 10m customers helped this past year
• 89% customer happiness score, up from 60% before Billie's rollout

Ikea's investment was partly driven by the pandemic. The company delayed e-commerce expansion, but when stores shuttered, it couldn't rely on its maze-like stores.

But call centers were suddenly overwhelmed. Billie could manage basic tasks, but more nuanced issues, like redesigning a kitchen, required humans.

Ikea spent two years retraining employees with in-person and online classes — a process that now takes five to six weeks. In addition to solving problems, employees also encourage additional purchases.

The company aims to let "values, not just productivity" shape how AI is implemented, per Fortune. The approach benefits morale — at a time when 40% of workers fear AI will make their job obsolete, up from 28% in 2024.

AI could displace 92m jobs by 2030, according to the World Economic Forum, which emphasizes that upskilling employees is a strategic investment.

Similarly, Torani, the 101-year-old syrup maker, considers how employees can use AI to tackle more valuable work, rather than asking how many positions can be eliminated.

So, if you're stressed about assembling that coffee table, pour yourself a Torani-infused beverage and give Ikea a call.