Global Artificial Intelligence in Retail Market Grows at a Staggering CAGR of 35.3%

Introduction

AI creates human-like robots. Minds are problem-solving machines. Algorithms power AI. Algorithms. Complex algorithms build on simpler ones. Retail digital transformation extends beyond connectivity. Data insights generate business results. Retail machine learning and deep learning create these penetrations. That produces fantastic customer experiences, revenue growth, rapid innovation, and intelligent operations that distinguish merchants. AI helps retail systems cooperate to enhance forecasting, inventory management, and consumer experiences. Customers locate the correct items at the right moment. Machine vision enables brick-and-mortar shops near-real-time intelligence. Cloud data may disclose fresh business insights.

During the projection period, the market will be driven by the rising demand for store monitoring and surveillance, higher awareness and use of AI in retail, enhanced productivity, ROI, inventory accuracy, and supply chain optimization. AI in retail is increasing outcomes and engaging consumers online, which will boost demand in the future. The multichannel retailing, organizational desire for optimizing business operations, and the need to enhance the customer experience to leverage on market dynamics will drive global retail AI market growth. Government digitization will boost retail AI. Retail AI will benefit from the blockchain and 5G technologies.

Market Dynamics

Customer Experience Improvement Due to Al-powered Chatbots

Retailers like AI-powered chatbots for their efficient customer service. Chatbots customize client service. 91% of Accenture insights consumers chose brands with tailored suggestions and services. All chatbots employ NLP and ML. These systems enable real-time consumer preferences. It enables the chatbot to answer queries and creates connections by understanding consumers' emotions and behavior. Levis' Virtual Stylist chatbot advises customers. The bot requests size, fit, material, and brand choices quickly. Thus, Al-driven chatbots will drive retail AI.

AI-Driven Voice Search and Visual Search

Online shopping is booming. Product photos, videos, and voice searches are new. Processing questions and mining metadata enhances visual search AI. AI helps the visual search engine evaluate, analyze, and forecast shopping patterns, enhancing consumer engagement. Syte Visual Conception Ltd. revealed that roughly 80% of buyers start with a visual search. Retailers need AI-based search engines to boost customer service and revenue. Retailers benefit from al-powered searching. Retailers may benefit from AI-driven search engines.

Regional Analysis

North America is the most significant contributor to global artificial intelligence in the retail market and is anticipated to grow at a CAGR of 30.5% during the forecast period. Automation and AI help companies and customers. North American retailers are investing in AI to enhance consumer shopping experiences, driving retail AI growth. Capgemini reports that 25% of the top 250 worldwide retailers are using AI. Regional shops use client preference data to enhance service. The US invested extensively in AI technology early on. Retail AI should increase. Due to early U.S. retail AI adoption, many regional merchants employ AI-based supply chain and inventory optimization solutions. North American merchants use client preference data to enhance service: the US-led AI adoption and investment. US startups and small enterprises are growing due to technological demand, which will enhance retail AI.

Europe is expected to grow at a CAGR of 38.7% during the forecast period. The UK, Germany, France, Italy, Spain, and the rest of Europe are all included in the analysis of Europe's artificial intelligence in the retail market. Europe expects retailers to create the most value. Retailers have used cutting-edge technology to enhance the consumer experience. The rising need for predictive analysis and machine learning in European retail will also influence AI. Great cosmetics, fashion, clothing, and other stores are investing in modern technology to enhance the consumer experience. According to Global Data Insights, European AI increased by 26.7% in the first quarter of 2020. Retail AI demand rises.

Key Highlights

• The global artificial intelligence in the retail market was valued at USD 5.91 billion in 2022. It is projected to reach USD 89.79 billion by 2031, growing at a CAGR of 35.3% during the forecast period (2023-2031).
• Based on type, the global artificial intelligence in the retail market is bifurcated into online and offline. The offline segment is the highest contributor to the market and is expected to grow at a CAGR of 34.6% during the forecast period.
• Based on components, the global artificial intelligence in the retail market is bifurcated into solutions and services. The solutions segment is the highest contributor to the market and is expected to grow at a CAGR of 36.2% during the forecast period.
• Based on technology, the global artificial intelligence in the retail market is bifurcated into machine learning, natural language processing (NLP), analytics, and others. The machine learning segment owns the highest market share and is expected to grow at a CAGR of 35% during the forecast period.
• Based on application, the global artificial intelligence in the retail market is bifurcated into predictive merchandising, programmatic advertising, in-store visual monitoring and surveillance, and others. The predictive merchandising segment is the highest contributor to the market and is expected to grow at a CAGR of 33.7% during the forecast period.
• North America is the most significant contributor to global artificial intelligence in the retail market and is expected to grow at a CAGR of 30.5% during the forecast period.

Competitive Players

Competitive Players

The global artificial intelligence in the retail market major key players are Accenture, Amazon Web Services Inc., Google Inc., Intel Corporation, IBM Corporation, Microsoft Corporation, Numenta Inc., NVIDIA Corporation, Oracle Corporation, Salesforce.com Inc., SAP SE, Sentient Technologies, ViSenze Pte Ltd.

Recent Developments

Market News

• October 2022, Oracle Unity, a Customer Data Platform, now has 15 baseline AI models to help organizations across industries improve customer engagements (CDP). Oracle Unity, part of Oracle Fusion Cloud Customer Experience, delivers personalized industry-specific experiences using built-in artificial intelligence and customizable industry-specific data models.

• June 2022, Intel Corporation, ASUSTeK Computer Inc., and Microsoft Corporation released AI DevKit, the first AI on PC Development Kit. The AI on PC Development Kit uses deep neural networks and PC vision applications. Software-hardware integration with tutorials and source code to create compelling AI applications and enable new ones.

Segmentation

Global Artificial Intelligence in Retail Market: Segmentation

By Type

• Online
• Offline

By Component

• Solution
• Services

By Technology

• Machine Learning
• Natural Language Processing (NLP)
• Analytics
• Others

By Application

• Predictive Merchandising
• Programmatic Advertising
• In-store visual Monitoring and Surveillance
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA