AI in retail: Enhancing innovation and job satisfaction through empathy and reliability

The evolving role of AI in retail workplaces

Artificial intelligence (AI) is rapidly transforming the retail landscape - not only through automation and efficiency gains but by fostering more innovative and fulfilling work environments. As retail businesses increasingly integrate AI systems into their daily operations, understanding how these technologies affect employee behavior is becoming crucial.

A recent peer-reviewed study published in the Journal of Retailing and Consumer Services examines how the perceived quality of AI services influences innovation, job fit, and satisfaction among retail employees. Conducted by researchers from Florida Atlantic University and Hanyang University in South Korea, the study assesses both system-related features, such as reliability and transparency - and interaction-related traits like responsiveness and empathy. A unique focus was also placed on AI adaptability, or the technology’s ability to adjust to user needs in real time.

The findings, based on survey responses from 290 retail professionals across e-commerce, grocery, fashion, electronics, and finance sectors, indicate that AI systems perceived as reliable and empathetic significantly encourage innovative behavior among employees. While attributes like transparency and responsiveness were expected to be influential, they proved less impactful than anticipated. Reliability emerged as a core driver for innovation, highlighting the need for consistent and dependable AI performance.

Empathy and adaptability as drivers of engagement

While technical performance remains important, the study reveals that empathy is a more decisive factor in shaping a positive employee experience. AI systems that can interpret and respond to emotional and psychological cues were shown to foster more engaging and innovative workplace cultures. This shift in focus from automation to emotional intelligence could significantly reshape retail management strategies.

“Empathy in AI fosters trust and deeper connections, encouraging employees to engage in innovative behavior by making them feel supported,” said Dr. Sangbeak Ye, co-author of the study and associate professor at Florida Atlantic University. “In retail, empathetic AI enhances job fit by aligning personal attributes with job expectations, leading to reduced turnover and increased employee involvement.”

Moreover, AI adaptability - the system's capacity to modify its behavior based on user interaction - was found to moderate the effects of system reliability and transparency. In other words, even the best-performing AI tools must remain flexible and user-centric to sustain innovation. As retail environments grow more dynamic and customer demands shift rapidly, empathetic and adaptable AI will become even more essential.

For managers, this means investing not just in powerful AI systems, but in ones designed to connect meaningfully with employees. Encouraging innovation will require not only technological infrastructure but a cultural shift that values emotional engagement and creativity.

Implications for Vietnam’s retail sector

Vietnam’s fast-expanding retail industry - home to major players like Tiki, Vincom Retail, and Saigon Co.op - is already adopting AI tools for logistics, customer analytics, and service personalization. The findings of this study offer critical guidance for Vietnamese retailers aiming to align their digital transformation efforts with workforce development.

Under the country’s National Digital Transformation Program, which targets a comprehensive shift to a digital economy by 2030, organizations are encouraged to adopt human-centered technologies. This study’s emphasis on empathy and adaptability aligns well with that agenda. By leveraging emotionally intelligent AI systems, Vietnamese retailers can create more motivating environments that attract younger workers and reduce staff turnover - issues that remain pressing in Vietnam’s competitive labor market.

Retailers in Vietnam can begin by introducing AI assistants and recommendation engines not just for customers but for internal use - offering employees insights, automating repetitive tasks, and customizing workflows based on personal strengths. Additionally, culturally adapted AI tools that understand Vietnamese language nuances and workplace dynamics can further enhance job satisfaction.

AI adoption is reshaping Vietnam’s retail sector, driving employee innovation and enhancing service quality.

AI’s role in retail is evolving from an operational tool into a driver of workplace innovation and satisfaction. As highlighted by the recent research, reliability and empathy are essential characteristics for AI systems to foster creative engagement among employees. For both global and Vietnamese retailers, the future lies in integrating AI that not only performs efficiently but also connects on a human level. Doing so can transform retail work environments, unlocking new levels of employee potential and service innovation.

Journal Reference: Suhyoung Ahn, JungKun Park, Sangbeak Ye. How AI enhances employee service innovation in retail: Social exchange theory perspectives and the impact of AI adaptability. Journal of Retailing and Consumer Services, 2025; 84: 104207 DOI: 10.1016/j.jretconser.2024.104207