AI (Artificial Intelligence) in Retail Market is Projected to Reach $6.79 Billion by 2023

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.

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.

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