Lawson Embraces AI with Digital Avatars to Tackle Labor Shortages

Lawson, a well-known Japanese retail company, has taken a significant step in addressing labor shortages by incorporating an AI-powered system in its outlets across Japan. This innovative system, which utilizes digital avatars, aims to enhance customer service while reducing reliance on human operation. The digital avatars, which mimic the movements of cashiers and appear on checkout screens, provide a seamless interaction experience for customers. By employing remote staff to operate these avatars, Lawson is paving the way for a future where technology plays a vital role in retail service.

The adoption of this system comes at a time when hourly part-time wages have reached an all-time high as of November 2024 and are expected to continue rising. This economic climate has posed challenges for businesses like Lawson that depend on an ample supply of affordable labor. The AI-powered system offers a solution by allowing remote employees to serve customers through animated characters displayed at checkout points.

Roy Larke, a senior lecturer in marketing, highlights the potential of this technological advancement. He notes that the labor shortage is indeed a pressing issue for convenience stores, which traditionally rely on cost-effective labor solutions.

“The labour shortage is real, and konbini (convenience stores) rely heavily on a good supply of cheap labour,” – Roy Larke

Larke further anticipates that not only Lawson but also other retail entities will soon adopt similar AI systems to mitigate operational challenges.

“Hourly part-time wages were at an all-time high in November 2024 and will continue to rise. I would fully expect Lawson and others to use this type of system backed by AI in the very near future, reducing and then eventually doing away with the need for human operation.” – Roy Larke

As part of its marketing strategy, Lawson's integration of AI technology underscores its commitment to improving customer service and operational efficiency. The digital avatars are designed to interact with customers effectively, ensuring a smooth shopping experience at Lawson's outlets.