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 Analysis

Artificial Intelligence (AI) in Retail Market Dynamics

Artificial Intelligence (AI) in Retail Market Drivers

Strengthening Fraud Detection and Prevention

Use of AI is expected to significantly strengthen fraud detection in retail by analyzing transaction patterns and flagging anomalies in real time. Identification of unusual payment behavior, fake returns, or account takeovers via machine learning is also helping bolster the Artificial Intelligence (AI) in Retail Market outlook. AI-driven security systems also help identify internal fraud or inventory shrinkage. Natural language processing (NLP) can be used to monitor employee communication for potential ethical violations.

Emphasis on Dynamic Pricing and Promotions

AI enables dynamic pricing strategies that adjust product prices in real time based on market demand, competitor pricing, customer behavior, and inventory levels. This approach helps retailers maximize revenue and maintain competitiveness without compromising profit margins. AI algorithms can also personalize discounts and promotions for individual customers, improving conversion rates. Retailers use AI to test different pricing scenarios and optimize results using A/B testing. These intelligent pricing mechanisms enhance strategic decision-making and respond quickly to market changes.

Artificial Intelligence (AI) in Retail Market Restraints

Lack of Skilled Workforce

Implementing AI solutions in retail requires a highly skilled workforce, including data scientists, AI engineers, and domain experts. However, a global shortage of the aforementioned skilled professionals is estimated to slow down the adoption of AI in retail. Many retail companies struggle to recruit or retain professionals who can develop, manage, and scale AI systems effectively. Additionally, upskilling existing staff to work alongside AI tools demands time and investment. This talent gap significantly limits the potential of AI adoption and slows down innovation across the retail sector.

Issues in Integration with Legacy Systems

Multiple retail institutions still function on legacy IT systems that are outdated and incompatible with modern AI technologies. Legacy systems often lack standardized data formats, real-time processing capabilities, and API connectivity, making seamless AI deployment difficult. Retrofitting AI into these systems often requires complete IT overhauls or costly middleware solutions. This integration challenge acts as a major deterrent for retailers considering digital transformation.

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.

Artificial Intelligence (AI) in Retail Market

Report ID: SQMIG45C2052

Artificial Intelligence (AI) in Retail Market Trends

Artificial Intelligence (AI) in Retail Market Dynamics

Artificial Intelligence (AI) in Retail Market Drivers

Artificial Intelligence (AI) in Retail Market Restraints

Artificial Intelligence (AI) in Retail Market Report Snapshots

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