| Abstract | Artificial Intelligence (AI) is progressively becoming integral to modern retail, driving
efficiency, personalization, and sustainability. By optimizing supply chains and demand forecasting,
engagement while lowering costs. However, this innovation also transforms labor markets: routine
and low-skilled retail jobs are under pressure from automation, while there is an increasing demand
for AI-complementary skills such as data analysis, digital literacy, and human-centric roles. In highskilled
segments, AI enhances productivity and wages, although it poses a risk of widening
beyond individual retailers, reshaping global value chains, improving productivity, and challenging
equity in both developed and developing areas. This paper presents the growth of informal sector in
India, with AI that facilitates formalization and social security while reinforcing digital infrastructure.
These initiatives can assist informal workers in achieving more stable incomes, better living
conditions, and increased employment opportunities in the AI-driven future.
Keywords Artificial Intelligence (AI), Informal Sector, Digital Infrastructure, Human-Centric,
Retailers
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