Waterstones CEO’s Stance on the AI Book Debate

Appearing on the BBC’s Big Boss Interview podcast, Waterstones CEO James Daunt sets out how the book seller handles AI-created books – as debate about Gen AI grows across publishing. 

He says: “As a bookseller, we stock what publishers release. Instinctively, we would recoil from pushing AI-created books.” 

Yet he also says that when an AI-written title gains readership and shows its origins clearly, Waterstones would bring it in. 

This approach holds to a single rule: readers decide what belongs in the shop.

Where Waterstones sits in the broader AI content surge

James says Waterstones would consider books created by AI when they are clearly marked and when readers want them. 

He says the store follows what publishers release, yet that he does not expect AI-written titles to become common in shops. 

He says: “There is an enormous amount of AI content being produced – and most of it isn’t something we would naturally stock."

The rise of Gen AI sparks debate across publishing and many authors express worry about threats to their livelihoods. 

A University of Cambridge study from November shows over half of authors fear being replaced by AI. 

The same study shows around two-thirds say their work has been used without permission to train AI systems. 

At the same time, some writers try out AI for research, editing or writing full-length novels. 

James says Waterstones keeps AI in operational areas such as logistics and keeps AI-created books off shop shelves at this stage. 

Human authors and Waterstone’s success in the AI conversation

James keeps a clear focus on human authorship. 

He says: “Readers value a connection with a real person,” and that Waterstones never misrepresents an AI-written title and labels it clearly. 

The store keeps readers in the centre of every choice – and James sets this out as he enters his thirty sixth Christmas season in bookselling.

He also highlights how the company’s success comes from managers who make local choices rather than head office instruction. 

He says: “Head office is there to make life easier. To ensure books arrive on time, but not to dictate how they are displayed.” 

This structure means each shop shapes its own displays, sets monthly highlights and offers book recommendations grounded in what readers in that area look for. 

This way of working stays in the present tense of everyday shop life.

James shows this approach from the moment he takes charge in 2011 when he ends payments from publishers for prominent shelf placement. 

This choice leads to a £27m (US$35.98m) revenue loss and brings worry among publishers. Yet by 2016 Waterstones, moved back into profitability. 

The company holds this course and keeps its shops open and active even as the wider High Street faces decline. BBC figures show around ten new stores open each year. 

The company reports profits of £33m (US$43.9m) on £528m (US$703m) in sales in 2024.

Inside Waterstones, readers and the wider publishing

Waterstones sits in a wider group with Foyles and Blackwell’s under hedge fund Elliott Advisers. 

James also serves as CEO of Barnes & Noble in the US, part of the same group. 

This double role prompts talk about a joint stock market flotation in New York or London. 

James says: “It feels like an inevitability and probably better than being flipped to the next private enquiry person,” though he says London’s IPO market is challenging and the scale of the US business may shape the choice.

James also comments on Rachel Reeves’ Autumn Budget. 

He says measures in the Budget help retailers through lower business rates for smaller stores. 

As Christmas approaches he notes that the post-pandemic revival of in-store browsing continues to push sales. 

He holds that readers return to the shops because the personal side of bookselling shapes their experience.

Through all this he sets out a single line: Waterstones uses technology when it helps the business, but the store keeps its link to readers through human authorship, clear labelling and shop floors shaped by staff who understand their local communities. 

This mix keeps readers at the centre as debate around AI grows and as the shelves continue to reflect what readers choose.