The latest 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.
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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 brought about significant
transformations in the retail sector, impacting various operational facets,
customer interactions, and decision-making processes. Through AI algorithms,
customer data is analyzed to offer personalized product suggestions based on
purchasing history, preferences, and behavior. Additionally, AI aids in
optimizing inventory levels by forecasting demand, thereby minimizing overstock
and preventing stock shortages. This enhances supply chain efficiency and leads
to cost reductions. By analyzing historical sales data, market trends, and
other pertinent factors, AI accurately predicts future demand, enabling
retailers to fine-tune stock levels and reduce surplus inventory. Moreover, AI
facilitates dynamic pricing strategies by scrutinizing competitors' pricing,
demand fluctuations, and market dynamics, allowing retailers to adjust prices
in real-time to stay competitive and maximize revenue. Furthermore, AI plays a
crucial role in identifying and thwarting fraudulent transactions by
scrutinizing payment data for patterns and anomalies, thus safeguarding both
retailers and customers 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 the leading market for AI (Artificial Intelligence) in
Retail Market in 2023. This growth can be attributed to the flourishing
e-commerce landscape in the region, prompting retailers to increasingly
integrate AI technologies to elevate online shopping experiences, streamline
supply chains, and enhance customer interactions. Consumers in North America
demand personalized shopping experiences and efficient service, driving the
adoption of AI tools like recommendation engines and chatbots. The region's
robust technological infrastructure facilitates the widespread adoption of
advanced technologies such as AI, enabling retailers to implement solutions for
inventory management, demand prediction, and customer analytics. To maintain
competitiveness, North American retailers are eager to embrace innovative
technologies like AI, which promise enhanced operational efficiency and
customer satisfaction. The abundance of data in the retail sector, spanning
customer preferences, purchase histories, and inventory details, presents ample
opportunities 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.