According to the new report titled “AI (Artificial Intelligence) in Retail Market by Offering (Solutions, Services), By Type (Online and Offline), By Application (Predictive Analytics, In-store Visual Monitoring & Surveillance, Customer Relationship Management, Market Forecasting, Inventory Management, Others), By Technology (Computer Vision, Machine learning, Natural Language Processing, Others), By Deployment Mode (Cloud, On-premises) Global Analysis to 2023″, the valuation of the AI (Artificial Intelligence) in Retail market was $6.79 Billion in 2023 and is projected to reach $95.22 Billion by 2032, at a CAGR of 34.10% from 2021 to 2032.
The AI (Artificial Intelligence) in Retail Market was valued at $6.79 Billion by 2023 and expected to grow at CAGR of 34.10% over forecast period. Artificial Intelligence (AI) has significantly impacted the retail industry, transforming various aspects of operations, customer experience, and decision-making. AI algorithms analyze customer data to provide personalized product recommendations based on purchase history, preferences, and behavior. AI helps optimize inventory levels by predicting demand, reducing overstock, and minimizing stock outs. This results in improved supply chain efficiency and cost savings. AI algorithms analyze historical sales data, market trends, and other relevant factors to predict future demand accurately. This enables retailers to optimize stock levels and minimize excess inventory. AI assists in dynamic pricing strategies by analyzing competitors’ prices, demand fluctuations, and other market variables. Retailers can adjust prices in real-time to remain competitive and maximize revenue. AI is used to detect and prevent fraudulent transactions by analyzing patterns and anomalies in payment data. This helps protect both the retailer and the customer from fraudulent activities.
Machine Learning held the largest share in the AI (Artificial Intelligence) in Retail market
By Technology, the AI (Artificial Intelligence) in Retail Market is segmented into Computer Vision, Machine learning, Natural Language Processing, Others. Machine learning (ML) is a subset of artificial intelligence (AI) that focuses on developing algorithms and models that enable computers to learn from data and make predictions or decisions without being explicitly programmed. ML algorithms analyze historical data to identify patterns and trends, enabling the prediction of future outcomes. This is widely used in areas such as sales forecasting, demand prediction, and risk management. ML is used to analyze customer data and behavior to create personalized marketing campaigns. This includes personalized email recommendations, targeted advertisements, and tailored promotions, leading to increased customer engagement and loyalty. ML algorithms power recommendation engines to suggest products to customers based on their purchase history, browsing behavior, and preferences. This is commonly seen in e-commerce platforms to improve cross-selling and upselling. ML helps retailers optimize inventory levels by predicting demand, identifying slow-moving items, and preventing stockouts. This minimizes excess inventory, reduces carrying costs, and improves overall supply chain efficiency.
North America headed the AI (Artificial Intelligence) in Retail market in 2022
North America is emerged as leading market for AI (Artificial Intelligence) in Retail Market in 2023. The growth of e-commerce platforms has been significant in North America, and retailers are increasingly adopting AI to enhance the online shopping experience, optimize supply chains, and improve customer engagement. Consumers in North America often have high expectations regarding personalized shopping experiences and quick, efficient service. AI technologies, such as recommendation engines and chatbots, are used to meet these expectations. North America has a robust technology infrastructure, making it conducive to the adoption of advanced technologies like AI. Retailers leverage this infrastructure to implement AI solutions for inventory management, demand forecasting, and customer analytics. Retailers in North America are keen on staying competitive by embracing innovative technologies. AI offers opportunities for retailers to gain a competitive edge through improved operational efficiency and customer satisfaction. The availability of vast amounts of data in the retail sector, including customer data, purchase history, and inventory information, provides a rich resource for implementing machine learning algorithms and AI solutions.
Key market players operating in the market that are profiled in the report are NVIDIA Corporation , Microsoft Corporation, Google LLC, IBM Corporation, SAP SE, Oracle Corporation, Sentient technologies, Intel Corporation, Salesforce, Inc. Talkdesk, Inc, etc.