IKEA Automates Customer Service with AI, Launches Rs 9,000 Crore Design Consultancy

IKEA's AI chatbot, Billy, resolves approximately 57% of customer queries independently, minimizing the need for human intervention. Instead of reducing workforce sizes, IKEA has focused on the 43% of queries that require human expertise, particularly in interior design advice.

This led to the reskilling of customer support staff into design consultants, culminating in a paid consultancy model. The new service has generated around 1 billion euros in revenue within its first year, demonstrating how AI can enhance operational capacity while redirecting human resources to higher-value tasks. IKEA's approach contrasts with other companies that have faced challenges with excessive automation, suggesting a more integrated utilization of AI alongside human employees.