AI revolutionizing retail: Cognizant’s Scott TumSuden on tackling labour challenges with technology

Date:

Share post:

Staffing issues continue to plague the retail industry, but Scott TumSuden, VP and Head of Retail Strategy and Growth Acceleration at Cognizant, believes the sector is on the brink of a transformation — one that’s being accelerated by the rise of generative AI and automation.

“Staffing in general in retail is a perennial problem,” TumSuden said in a recent conversation. “There’s about 60% annual turnover in most retail businesses and ultimately, that yields a lot of waste and inefficiencies.”

Scott TumSuden
Scott TumSuden

TumSuden explains that this constant churn leads to a “flywheel effect” of added costs and operational drag.

“When you have turnover, you have inefficiencies. You have a lot of waste, you actually add extra cost, right? Because then you’re having to retrain people, you’re having to research people, you know, you have to rehire people.”

But while staffing challenges are hardly new in the industry, TumSuden is optimistic that today’s technological advancements could mark a turning point.

“I actually think we’re on the dawn of a new age finally,” he said. “There are some opportunities to change that with the way that technology’s evolving — and generative AI in particular — to help address the churn, which then helps to address the efficiency, which then helps to address the usage of labour and making labour and workforces more effective.”

As AI capabilities mature, TumSuden sees them playing a vital role in reshaping not just roles, but entire operating models. “There are certain jobs that will be hopefully eliminated,” he said, noting the potential to phase out “low-end, highly automatable, highly mechanical jobs” — many of which are already being handled by tools like chatbots in customer service.

But it’s not just about elimination. TumSuden sees generative AI enhancing customer-facing and operational roles as well.

“You can actually provide better service because the generative AI can leverage all the data and the information about what products are relevant substitutes and probably be more knowledgeable than an individual associate.”

He points to the common “buy online, pick up in store” model as an example of a task ripe for reimagining. “You have a store associate picking and packing orders off the shelves during business hours when they could be servicing a customer,” he said. “They are servicing a customer because they’re picking and packing that order. But the reality is that they’re actually not — they’re doing a routine task.”

While robotics may eventually handle the physical work of picking products, generative AI already offers near-term solutions. “You can leverage the technology to figure out more efficient ways to pick and pack,” TumSuden said. “You can organize your stores maybe in a different way.”

Source- Walmart Canada
Source- Walmart Canada

That reorganization, he noted, could even challenge the longstanding practice of placing high-demand items in store corners to increase browsing. “You can say, ‘Hey, I’m gonna hit you with a little popup, ’cause the beacon on your phone says I know you’re here…’ and I can actually lay out my store in such a way that it’s actually more engaging.”

According to TumSuden, this shift frees up associates to focus on higher-value activities: “Ultimately in our mind, the goal is to free up your store associates so they can spend more time on servicing customers and less time on those complex tasks.”

The integration of generative AI also brings transformative potential for workforce support and development — two key levers in combating high turnover. “One of the things is how do you get help if you’re a store associate and you have a problem in the store?” he said. “What happens today is that’s a very painful process a lot of store associates have a bunch of different apps.”

TumSuden says Cognizant is already working with clients and partners to build agent-based systems that simplify problem-solving for frontline staff. “We see the world evolving to a single app and talk to an agent that can help them with solving that problem. Which makes their experience better and also creates a better roll through customer experience.”

Training, he added, is another overlooked area ripe for disruption. “Training is something that really hasn’t evolved in decades. If anything, it’s gotten worse,” he said. “But if you think about it, with synthetic AI and with generative AI, you can actually build more bite-sized customized training.”

He sees “a big unlock” coming in onboarding and upskilling, where AI can support a more efficient and enriched learning journey for new hires. “Once they’re up to speed leveraging agents to actually help them solve problems when they occur that is a huge transformation in the workforce.”

Despite ongoing fears about AI replacing human workers, TumSuden takes a more nuanced view.

“I don’t think I believe — or we believe — that we’re gonna see a decline in the retail workforce,” he said. “I really do believe that what’s going to hopefully happen is there’s a bit of a renaissance. Retailers see that the real value that they bring to the table versus a brand is they bring that customer intimacy and that’s where they differentiate.”

And that differentiation, he says, is precisely what retailers should be leaning into — with the help of technology finally mature enough to support it.

Cognizant, which operates globally and has a strong presence in the Canadian market, is already seeing these trends take hold across borders. “We work with a number of large customers in Canada,” TumSuden said, mentioning names like Canadian Tire and Circle K. “We’re seeing similar trends. They’re just manifesting in a slightly different sequence because of the local market dynamics.”

As generative AI and automation become more deeply embedded in retail operations, TumSuden sees one thing as clear: the associate of the future is not going away — they’re just going to be more empowered, more supported, and more essential than ever.

Related Retail Insider stories:

RELATED ARTICLES

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

How Retailers Are Reducing Store Rollout Costs Without Compromising Their Customer Experience

Rodmell & Company explains how its Customer Experience Value Engineering approach helps retailers identify repeatable savings in store development while preserving the elements of the customer experience that matter most. Patrick Rodmell discusses the role of specifications, cross-functional decisions and long-term value.

67% of restaurant operators report declining profitability: Restaurants Canada

38% expect profitability to decline next year, while just 21% anticipate an improvement, says Restaurants Canada report.

Canadians encounter scams despite confidence in spotting fraud: Equifax

An Equifax Canada survey finds 65 per cent of Canadians encountered fraudulent messages in the past year, while many lack key online security measures.

Nextdoor’s Halloween Treat Map returns as Canadians keep spending below $100

Nextdoor’s Treat Map returns for its seventh year in Canada as survey results show 88 per cent of Canadians expect to spend less than $100 on Halloween.

Holiday Shoppers Prioritize Discounts Over Brand Reputation, Rithum Executive Says

With 37% of shoppers prioritizing promotions over brand reputation, Rithum’s Blaine Nielsen explains how retailers can use data to target holiday discounts, protect margins and build customer loyalty.

A&W Canada Taps Hot Honey Trend With New Teen Burger in BULL’S-EYE Collaboration

A&W Canada introduces its limited-time Hot Honey BBQ Teen Burger as innovation director Karan Suri discusses flavour trends, menu development and QSR industry outlook for 2027.

Retail Demand Drives Vancouver Suburban Vacancy Below 1%: REMAX Report

REMAX Canada’s Fall 2026 report finds strong demand for neighbourhood plazas and grocery-anchored retail centres, with vacancy below 1% in some Greater Vancouver suburbs.

Daily Synopsis: October 26, 2026

Older workers and non-permanent residents greater share of retail workforce, Beaumont thrift store forced out due to community growth, Voyatique opens at CF Sherway Gardens, Circle K expands in Newfoundland, and other news.

Behind Oakridge Park’s Ambitious Fashion Show: Luxury Retail, John Legend and a New Vancouver Tradition

Oakridge Park's inaugural Front Row fashion event brought together John Legend, Joe Zee, more than 40 boutiques and a 250-person production crew. QuadReal's Irene Quan explains the luxury retail strategy, customer engagement initiatives and plans to establish an annual Vancouver fashion event.

Meghan Roach announces she’s stepping down as President/CEO of Roots

Roach will continue to support the company in an advisory capacity to ensure a smooth transition.

High Liner Foods to be acquired by Umios in $1.25-billion deal

Shareholders will receive $27 per share in cash under an acquisition agreement with Japanese seafood company Umios, with closing expected in early 2027.

Guac Mexi Grill plans 95 U.S. restaurants in 10-year expansion

Guac Mexi Grill has signed a 95-unit U.S. development agreement, targeting Georgia, South Carolina and Florida, with openings planned for 2027.

American Express Wants to Influence Where Consumers Shop, Not Just How They Pay

American Express is expanding its AI commerce strategy through OpenAI integrations, restaurant discovery and agentic payments. Its third-quarter earnings call reveals ambitions that could reshape how Canadian retailers attract customers, manage payment relationships and measure the value of emerging shopping channels.

UNIQLO to Open Flagship at Vancouver’s CF Pacific Centre

UNIQLO's planned CF Pacific Centre flagship will open in spring 2027, adding a roughly 37,000-square-foot downtown Vancouver store to its six existing Metro Vancouver locations. The store joins Aritzia and Simons in Cadillac Fairview's redevelopment of the former Nordstrom premises.

Lithia Warns Chinese Automakers Face Costly Canadian Dealership Expansion

Lithia & Driveway is considering a limited number of Chinese automotive franchises in Canada, but CEO Bryan DeBoer warns that exclusive dealership requirements, expensive real estate and a six-to-eight-year break-even estimate could complicate expansion.

Statistics Canada: Canada’s retail workforce is aging as AI adoption grows

Statistics Canada reports an aging retail workforce, rising AI adoption and uneven employment growth as Canadian retailers adapt to e-commerce and changing consumer spending.

Retail Insider “Q3 2026 Luxury Report”: Flagship Investment Changes the Store Economics

Luxury investment focused on selected Canadian properties, service and customer relationships in Q3. Retail Insider’s report examines the operating choices behind flagships, brand boutiques and more selective expansion.

adidas Canada partners with Montreal Canadiens, Cole Caufield

It gives adidas branding at the Bell Centre and feature the Canadiens winger in upcoming Canadian marketing campaigns.

Intimissimi and Calzedonia Open First Canadian Stores at CF Sherway Gardens

Italian fashion brands Intimissimi and Calzedonia have opened their first Canadian stores at CF Sherway Gardens in Toronto. ILT Group is planning a broader Canadian expansion, with another Intimissimi location scheduled for spring 2027.

The Shops at Buffalo Run Retail Centre Near Calgary Listed for Sale

The Shops at Buffalo Run near Calgary is for sale, offering 279,756 square feet of retail space, 93.7% occupancy and nearby Costco and Real Canadian Superstore anchors.