During a recent 100% human at work meeting in London, Parag Parekh, Chief Digital Officer (CDO) of IKEA Retail Store (Ingka Group) spoke to a group of business leaders about how IKEA approached and embraced the world of AI.
In the rapidly evolving landscape of business transformation, few companies have embraced change as enthusiastically as IKEA. Once renowned for its innovative cash-and-carry model, IKEA has rightly recognized the need to adapt its operations to align with changing consumer behaviors. This awareness then led to an overall digital transformation journey and, since 2017, IKEA has continually evaluated all aspects of its business model and operations.
“At the heart of IKEA’s digital transformation is a commitment to ethical and responsible AI, with the company’s values principles now embedded in the design, development and use of all digital technologies said Parag Parekh. “Furthermore, as we embark on transformation, we ensure that customer trust, successfully built over the past 80 years, is maintained. »
In 2019, IKEA created the first-ever digital ethics policy, positioning responsible AI as a core value rather than an afterthought and emphasizing its commitment to accountability, transparency, inclusiveness, diversity and sustainability in all AI initiatives. Although the company’s large-scale adoption of AI has been extremely well-received, IKEA management remains aware of the varied and very personal feelings of its employees, because amid this tremendous opportunity lie concerns understandable about the future.
According to Parag, “IKEA recognizes the importance of listening to our 165,000 employees. We are committed to upskilling and reskilling employees – and helping everyone adapt to the changing AI landscape, while preserving human dignity and free will.
As the company continues to move toward its omni-business model, it remains committed to a human-centered approach – creating new equitable and inclusive solutions that respect the brand’s values. Some of IKEA’s new initiatives include improving customer shopping experiences, increasing convenience through innovative supply chain solutions, and leveraging AI to help customers plan their living spaces and create better homes. IKEA is redefining the retail experience and staying true to its philosophy of putting what matters most – colleagues, customers, communities and the planet – first.
Parag Parekh, Chief Digital Officer (CDO) of IKEA Retail, explains how IKEA approached and embraced the world of AI | Tom Soper Photography
IKEA Retail (Ingka Group) also recently launched a new AI literacy program, implemented across the organization. The program will train more than 3,000 employees in 2024, helping to accelerate the learning curve of organizations and helping employees reskill to be able to make decisions. on the jobs of tomorrow. The group also has a company-wide AI and data education program, aimed at putting employees at the center of the development and use of responsible AI.
IKEA’s approach to AI demonstrates a positive shift in corporate responsibility, where businesses not only embrace technological advancements, but do so in a responsible and trustworthy manner. By prioritizing human-centered design principles, IKEA is setting a precedent for how AI can be harnessed for the benefit of all, paving the way for a more inclusive and sustainable future.
As we all continue to navigate the complexities of the digital age, IKEA’s commitment to AI for good can serve as a beacon of hope, inspiring others to follow suit by fostering a a fairer and more empathetic society.
Learn more about the 100% human at work network and the work it is doing to redefine and change work for good.
