site.btaModern Trade Association Executive Director: AI Is Created to Help People Not Replace Them

Artificial intelligence (AI) is designed to help us, not replace us, said Nikolay Valkanov, Executive Director of the Modern Trade Association, in an interview to BTA on the occasion of International Workers’ Day and the application of the technology in work processes.

“As for job losses, at least in the retail sector, I don’t think we can talk about that yet. I see AI as something created to help us, not replace us,” he said.

According to him, artificial intelligence can have many applications in the sector—from supporting individual customer targeting with offers, to managing pricing mix, orders, and more. It can also assist consumers in choosing what and where to buy.

“Recently, McKinsey & Company released its annual report, which examines retail processes in detail, and one statistic caught my attention—100 % of surveyed companies use AI, but only 3% see any measurable effect. They call it the ‘AI paradox.’ This means it is a process that will still require significant effort before it delivers any real results,” Valkanov noted.

On the occasion of May 1, the Association for Modern Trade highlights the efforts of businesses and employees in the retail sector, who contribute daily to the development of the economy. An analysis of a survey conducted at the end of 2025 outlines a picture of resilience, adaptability, and a drive for improvement, despite growing challenges.

Among these challenges is the increasing time needed to hire employees, both for entry-level and managerial positions, even though wages are rising and social benefit packages are expanding, with nearly two-thirds of companies already offering additional perks.

According to Nikolay Valkanov, the reason lies in the specific situation of the labor market, characterized by historically low unemployment levels and record-high employment.

“ Bulgaria’s labour market is not enough to fill the vacancies that businesses are opening. This is also shown by data from the Employment Agency. This is pushing employers to offer increasingly attractive salaries and benefits, but even these are no longer enough if a person has decided they don’t want to work in a dynamic environment with people, for example, or want to avoid physical labour,” he said.

According to him, retailers will need to become increasingly flexible and innovative, invest more and more in attracting and retaining employees, and successfully manage processes in warehouses, on the shop floor, and at checkout.

Nikolay Valkanov did not rule out the possibility that within 10–15 years retail trade could change completely, driven by these very processes.

In his view, workers’ expectations are rising because they value themselves and their time more. In addition, today there is an endless range of opportunities a young person can pursue.

“Technology has opened up possibilities that simply did not exist 10–15 years ago. Time is becoming a very important motivator - how flexible working hours are, and whether the workplace can adapt to employees’ individual needs. In a sense, the expectations of employers and employees never fully align, but that is where the role of a good manager comes in - to use each person’s strengths and combine them in a way that creates a complementary, cohesive, and loyal team,” said the executive director of the Association for Modern Trade.

According to data from the Association, retail trade in Bulgaria generates 4.2% of the country’s gross value added and is among the largest employers, with 221,000 people employed.