Artificial Intelligence in Retail Market Market is Expected to Grow at a CAGR of 34.10% from 2022 To 2028
Artificial intelligence (AI) has totally reinvented the retail industry landscape. It is been using tech like computer vision so as to customize promotions in real-time and machine learning for inventory management. Most retailers use AI to connect with their customers to function and operate in a more efficient way. AI is integrated at every step of the way in retail from the brick-and-mortar edge to the cloud. Digital transformation in retail is about converting unstructured data into meaningful and valuable insights that drive better business outcomes. AI in retail which includes machine learning and deep learning are key technologies to generate these insights.
The use of this tech leads to incredible customer experiences, fast innovation, opportunities to grow in terms of revenue, and smart operations which help differentiate from the other competitors. Most of the retailers are already implementing AI in a few parts of their operations like it is used in CRM software to program or automate marketing operations, apply predictive analytics to identify customers that are likely to buy their products. By integrating AI tech with both the edge and the cloud retailers can turn their data into new insights and create data-centric solutions which result in inaccurate forecasts, product recommendations, inventory efficiencies, and smarter business overall.
Artificial Intelligence (AI) is a dominating technological development across various sectors and retail is not an exception. As the retail sector is undergoing various vital changes including a shift from goods to services, a rise in nontraditional competition, hyper-personalization, and the emergence of advanced technologies. The emergence of advanced technologies such as AI has shaped newer opportunities and disrupted the traditional ways of marketing, managing, optimizing, and improving activities across supply chains. Moreover, increasing spending on IT infrastructure from retail companies is likely to promote the adoption of artificial intelligence in the retail sector during the upcoming years. Apart from that, intense competition in the e-commerce place is likely to compel the adoption of artificial intelligence to gain and process consumer data to implement strategies based on consumer behavior. For instance, in June 2021, Walmart officials announced that the company has developed AI-based technology to aid their individual shoppers and make them available with a smarter substitution for unavailable products.
However, incompatibility concerns and issues with a diverse development framework, models, and mechanisms in AI along with concerns over privacy and identity of individuals are expected to hinder the growth of the market in the years to come. Moreover, the increase in the adoption of cloud-based technology solutions and the rise in AI-based data analysis applications are expected to create immense opportunities for the growth of the market within the forecast period. Additionally, the growing number of smartphones and rising internet proliferation is also expected to create demand for artificial intelligence in the retail industry in near future.
North America held the largest shares in 2021. This is attributable to the presence of prominent players delivering AI solutions in the region. Furthermore, the rapid and early adoption and use of AI technology and the increased use of the internet are also expected to fuel the regional growth of the market. Additionally, most of the retailers have deployed AI-based solutions to optimize their supply chain operations and inventory in this region which is also expected to support the growth of the market in the region.
Some of the prominent players operating in the global Artificial Intelligence in Retail Market market include IBM (US), Microsoft (US), Amazon Web Services (US), Oracle (US), SAP (Germany), Intel (US), NVIDIA (US), Google (US), Sentient technologies (US), Salesforce (US), and ViSenze (Singapore)".
Browse the full Report - Artificial Intelligence in Retail Market Size, Share & Trends Analysis Report by Type (Online, Offline), by Technology (Machine Learning and Deep Learning, Natural Language Processing, Others (Analytics and Process Automation)), by Solution (Product Recommendation and Planning, Customer Relationship Management, Visual Search, Virtual Assistant), by Service (Professional Services, Managed Services), by Deployment Model (Cloud, On-Premises), by Application (Predictive Merchandising, Programmatic Advertising, Market Forecasting, In-Store Visual Monitoring and Surveillance), by Region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)