The market for artificial intelligence (AI) in retail is anticipated to reach a value of US$ 85 billion by 2033, growing at a notable CAGR of 30.3% from 2023 to 2033.
The market for artificial intelligence (AI) in retail is anticipated to reach a value of US$ 85 billion by 2033, growing at a notable CAGR of 30.3% from 2023 to 2033.
In the retail industry, artificial intelligence is ushering in a new era of how businesses track their operations to enhance business strategies, produce better results, and connect with customers online.
Around the world, many well-known retailers are coping with escalating costs, displeased customers, declining sales, and escalating competition. Retailers are implementing technology solutions as a result to increase operational effectiveness and enhance customer interactions.
Supply chain management, inventory management, customer relationship management, and marketing and branding are just a few of the retail industry’s areas that have a lot of room for technological advancement. This will help retailers increase their general effectiveness and profitability.
Due to factors like increased big data analytics and artificial intelligence (AI) knowledge, an increase in the number of smart devices and internet users, an increase in the amount of data generated by the retail sector, and robust government digitization initiatives, the global artificial intelligence in retail market is growing quickly.
Additionally, the adoption of an omnichannel or multichannel retailing strategy, enterprise needs for streamlining business processes, untapped opportunities to increase sales efficiency, and the growing need to enhance end-user experience and take advantage of market dynamics are all factors that are contributing to the growth of the global market.
The majority of global revenue is under North American control. Retailers in the area are focusing on extracting easily accessible data on customer preferences in order to increase customer service efficiency. The largest market in North America is the United States.
The nation is currently making significant investments in AI technology. The United States is also witnessing the emergence of new small businesses and start-ups as a result of the increased demand for technology.
Europe and Asia-Pacific are developing at the same rate as North America. The retail sector in Asia and the Pacific is changing quickly. Modern technologies are therefore increasingly needed to improve business processes and the customer experience.
The global artificial intelligence in retail market is expected to reach US$ 6 billion in 2023, according to the study’s key findings. The demand for artificial intelligence technology in retail is expected to grow globally between 2023 and 2033 at a CAGR of 30.3%.
By 2033, the market for artificial intelligence in retail is expected to grow to US$ 85 billion. In 2022, North America held a 38.5% share of the global market. In 2022, machine learning held a 30% share of the global market.
“By enabling businesses to personalise customer experiences, streamline supply chains, and increase operational efficiency, AI is quickly changing the retail sector.
Additionally, AI is assisting companies in gaining crucial insights into consumer behaviour and preferences, which can be used to create more focused and effective marketing campaigns, “a Fact.MR analyst says.
Leading businesses are focusing on introducing novel solutions in order to increase their market presence and share. For instance, in June 2021, Talkdesk, Inc. released an AI-based Talkdesk Retail Smart Service that enables customers and support staff to engage in other important revenue-generating activities through automated self-service.
In its latest offering, Fact.MR provides a fair analysis of the global artificial intelligence (AI) retail market by providing historical demand data (from 2018 to 2022) and forecast statistics (from 2023 to 2033) for the relevant timeframes.
The study provides key market insights across five key regions based on offering (solutions, services), type (offline, online), technology (machine learning, natural language processing, computer vision, other technologies), deployment (cloud, on-premise), and application (customer relationship management (CRM), supply chain and logistics, inventory management, product optimizations, in-store navigation, payment and pricing analytics, virtual assistants) (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa). These observations are based on a report by Fact.MR titled Artificial Intelligence (AI) in the Retail Market.