What is the global market size of Artificial Intelligence (AI) in Retail Market?

Global Artificial Intelligence (AI) in Retail Market is valued at USD 5.59 Billion in 2022 and is expected to grow from USD 7.42 Billion in 2023 to reach USD 71.23 Billion by 2031, at a CAGR of 32.68% during the forecast period (2024-2031).

Who are the key vendors in the Artificial Intelligence (AI) in Retail Market?

Global Artificial Intelligence (AI) in the Retail Market is competitive, with many major firms operating in both domestic and international markets. The industry's top players are embracing strategic collaboration initiatives to improve market share and profitability. Some of the major players in the market are Amazon.com Inc, Google LLC, Intel Corporation, and Nvidia Corporation, among others who are driving the market. 'Amazon Web Services (AWS) (US) ', 'Google LLC (US) ', 'Microsoft Corporation (US) ', 'IBM Corporation (US) ', 'SAP SE (Germany) ', 'Oracle Corporation (US) ', 'Salesforce.com, Inc. (US) ', 'Infosys Limited (India) ', 'Capgemini SE (France) ', 'Alibaba Group Holding Limited (China) ', 'Baidu, Inc. (China) ', 'HCL Technologies Limited (India) ', 'Wipro Limited (India) ', 'Tata Consultancy Services Limited (TCS) (India) ', 'Accenture plc (Ireland) ', 'Intel Corporation (US) ', 'NVIDIA Corporation (US) ', 'Cognizant Technology Solutions (US) ', 'Fujitsu Limited (Japan) ', 'Symphony RetailAI (US)'

What is the key driver of Artificial Intelligence (AI) in Retail Market?

AI-based chatbot recruiting is now being spread widely in the retail market. This is attributed to its greatly improving customer service quality. The chatbot gives a purposeful and customized reaction to clients to have them stay with your service. Take upliance.ai, for example, as they ventured into ChatGPT at the start of May 2023. DelishUp, a smart cooking companion, managed cooking in smooth manner by making cooking process automated. Moreover, the business projects at entering the home appliances class and thereby making a formidable base in Artificial Intelligence among the outdoor markets. Through NLP and ML technologies, AI chatbots have become more humanized. Using them, companies can gain actual data about customer preferences now and in real time. Besides, they help the chatbot understand customers' attitudes and feelings as well as a behavior pattern that tests his responsiveness to customer queries and his ability to build relationships.

What is the key market trend for Artificial Intelligence (AI) in Retail Market?

AI-driven Visual and Voice Search will Speed Up Booming Market Indicators: The e commerce channels, and online shops supply markets are experiencing a surge in demand. Nowadays consumers can use the new methods of product description e.g. images, videos and voice (mobile internet; smartphone with assistant) to search for new products or brands. AI in visual search manages to be more effective by using two functions which are data collection and data mining. The AI shopping app (visual searching engine) works through the advent of AI features such as the ability to analyze, track, and predict growing shopping trends which, therefore, enhances shopper’s experience and engagement.

Which region accounted for the largest share in Artificial Intelligence (AI) in Retail Market?

Based on SkyQuest in-depth study, we found that the retailers in North America, especially in the United States, employ AI algorithms to extract crucial information from various patterns in data acquired by them. The United States employs the most artificial intelligence in its retail business. For a long time, AI technology was predominantly accepted by the United States, allowing for the formation of new start-ups in the technology field that provide AI services to the retail market. Patenting activity was driven by the US with a 55% share of total patent filings. The largest share of artificial intelligence related patent filings in the retail industry was in the US with 55% of the total retail AI patent filled.

Artificial Intelligence (AI) in Retail Market Worldwide

Artificial Intelligence (AI) in Retail Market Regional Insights

Why AI in retail Companies Invest in North America?

High consumer digital engagement and strong presence of tech giants like Amazon, Google, and Microsoft allow North America to spearhead AI in retail adoption on a global level. High investments in AI startups, robust cloud infrastructure, and mature regulatory frameworks are further cementing the dominance of this region. North America also benefits from a skilled workforce and early digital transformation in retail. Retailers leverage AI extensively for fraud detection, real-time analytics, and omnichannel experiences.

Artificial Intelligence (AI) in Retail Market in United States

Presence of top companies such as Amazon, Walmart, and Target who use AI for personalization, inventory management, and predictive analytics allows this country to lead revenue generation. High digital literacy, robust cloud infrastructure, and investor support for AI innovation is also helping the United States emerge as a key market for AI in retail providers. Integration of AI with omnichannel retail, supply chain automation, and virtual assistants positions the country as a global benchmark in AI-enabled retail transformation and consumer engagement.

Artificial Intelligence (AI) in Retail Market in Canada

Strong government funding and a vibrant AI startup ecosystem make Canada a lucrative market for AI in retail companies. Urban centers such as Toronto and Montreal act as AI hubs, fostering innovation in retail technology. Fraud prevention, customer segmentation, and predictive demand forecasting are emerging as attractive applications for AI in the retail industry of the country. Canada's bilingual market also encourages AI localization efforts, enhancing customer experience and inclusivity across diverse consumer demographics and retail formats.

How Will AI in retail Demand in Asia Pacific Perform?

Rapid urbanization, rising disposable income, and booming e-commerce make Asia Pacific the fastest growing region for AI in retail companies on a global level. Government initiatives like China’s “AI 2030” and India’s “Digital India” drive innovation and adoption. High use of smartphones, rising internet penetration, and demand for personalized, mobile-first retail experiences are also helping generate new business scope for market players in the long run. The region’s growing startup ecosystem and cross-border trade in digital goods are also amplifying AI deployment in the retail industry.

Artificial Intelligence (AI) in Retail Market in Japan

Emphasis on enhancement of in-store customer experiences and availability of advanced automation and robotics technologies make Japan a key AI in retail industry. Japan’s aging workforce accelerates demand for AI-driven operational efficiency and labor reduction. Aeon and Seven & I Holdings are the key retail companies focusing on AI adoption. Japan emphasizes precision, robotics, and human-AI interaction, positioning its retail sector as a leader in AI-integrated physical store innovations and customer service enhancements.

Artificial Intelligence (AI) in Retail Market in South Korea

Integration of AI across e-commerce, logistics, and customer service applications in retail makes South Korea a digitally advanced market. Adoption of AI in retail is high for real-time pricing, virtual try-ons, and smart inventory systems by retail companies such as Lotte and Shinsegae. South Korean consumers embrace tech-driven retail experiences, boosting demand for AI chatbots and personalization. With strong tech infrastructure and innovation culture, South Korea is rapidly emerging as a model for smart retail transformation across both physical and digital channels.

Should AI in retail Providers Invest in Europe?

The presence of a well-developed digital economy, supportive AI strategies, and high consumer expectations for personalized experiences make Europe a mature market for AI in retail providers. Growing investments in smart retail infrastructure, integrating AI into supply chains, customer engagement, and fraud prevention are helping generate new business scope via this region. The presence of strong retail brands and focus on responsible AI implementation are expected to govern the future of AI in retail adoption for Europe through 2032 and beyond.

Artificial Intelligence (AI) in Retail Market in United Kingdom

Tesco, Marks & Spencer, and ASOS are the top retailers experimenting with the implementation of AI in the United Kingdom. Customer analytics, recommendation engines, and automated fulfillment applications are forecasted to be the prime focus on AI in retail companies. The government’s AI strategy promotes responsible use and industry collaboration. As retailers shift toward omnichannel strategies and digital-first models, AI continues to enhance personalization, sustainability, and operational efficiency in the United Kingdom retail sector.

Artificial Intelligence (AI) in Retail Market in Germany

Adoption of AI for supply chain optimization, cashier-less checkouts, and automated warehouses by retailers such as Aldi and Metro Group allows Germany to emerge as an opportune country. Trust, transparency, and responsible innovation aligned with GDPR framework are the key principles on which AI adoption is driven in the country. Universities and research institutes collaborate with retailers to develop cutting-edge AI tools. Germany’s focus on data ethics, reliability, and automation positions it as a technological powerhouse in Europe’s retail AI landscape.

Artificial Intelligence (AI) in Retail Market in France

Rising consumer expectations and a robust tech ecosystem are steadily promoting the adoption of AI in retail across France. French retailers such as Carrefour and Auchan use AI for dynamic pricing, shelf analytics, and customer engagement. The presence of multiple AI startups in Paris focusing on retail applications and emphasis on ethical AI use are also helping boost revenue generation. The fashion and luxury retail segments are benefiting the most from AI-powered visual search and personalization in the country.

FAQs

Artificial Intelligence (AI) in Retail Market size was valued at USD 7.42 Billion in 2023 and is poised to grow from USD 9.84 Billion in 2024 to USD 94.51 Billion by 2032, growing at a CAGR of 32.68% during the forecast period (2025-2032).

Artificial Intelligence (AI) in Retail Market providers is expected to focus on the development and launch of new solutions and platforms to enhance the shopping experience for retail customers. Purchasing patterns, consumer behavior, and checkout patterns can also be analyzed using AI to gain a better insight into the retail landscape and facilitate informed decision-making. Partnerships and collaborations to create better AI-based solutions will also offer new opportunities for all artificial intelligence (AI) in the retail market players in the long run. 'Amazon Web Services (AWS) ', 'Google LLC ', 'Microsoft Corporation ', 'IBM Corporation ', 'SAP SE ', 'Oracle Corporation ', 'Salesforce.com, Inc. ', 'Infosys Limited ', 'Capgemini SE ', 'Alibaba Group Holding Limited ', 'Baidu, Inc. ', 'HCL Technologies Limited ', 'Wipro Limited ', 'Tata Consultancy Services Limited (TCS) ', 'Accenture plc ', 'Intel Corporation ', 'NVIDIA Corporation ', 'Cognizant Technology Solutions ', 'Fujitsu Limited ', 'Symphony RetailAI'

Retail organizations around the world are focusing on improving their operational efficiency and boosting productivity to stay competitive. Use of AI tools and solutions brings retail companies closer to their goal by providing meaningful insights in every business aspect and through automation for retail operations.

Personalization of Retail Experience: consumer experience is everything in this rapidly evolving world of changing consumer preferences. AI in retail companies should target personalization of shopping experience for retail customers to promote engagement and build brand loyalty. Offering personalized discounts, product recommendations, and other things through AI can help retail organizations take their business to the next level.

Presence of key AI and retail organizations in the North American region allows it to hold a dominant stance in the global AI in retail landscape. Retail companies in this region have been quick to integrate AI in their business to enhance their operations and improve customer experience as well. Rising acceptance of AI technologies in the retail landscape of countries such as the United States and Canada will also contribute to the high market share of this region. High investments in AI research and development in this region will also foster new opportunities for artificial intelligence (AI) in retail companies in the future.