The Global Artificial Intelligence (AI) in Retail Market Size was valued at USD 1,131 Million in 2021 and is anticipated to reach USD 16,650 Million by 2030 with a CAGR of 34.9% from 2022 to 2030.

The retail industry has been undergoing digital upheaval for years. All sectors of retail have seen an increase in efficiency, speed, and accuracy thanks in large part to enhanced data and predictive analytics tools that support businesses in making data-driven business choices. Without the internet of things (IoT), and particularly without artificial intelligence, none of these discoveries would be possible. Businesses now have access to high-level data and information that can be used to enhance retail operations and open up new business opportunities thanks to AI in retail. These technologies can potentially work autonomously, converting raw data collected from IoT and other sources into meaningful insights utilizing advanced AI analytical capabilities. AI in retail also makes use of behavioral analytics and consumer intelligence to gain important insights about various market demographics and improve a variety of touchpoints in the customer service sector of business.

Market Dynamics

Increasing automation is the primary factor boosting the global AI in retail market. One of the most significant ways that AI is revolutionizing the retail industry is by automating operations that were previously performed by human workers. This enables your personnel to devote less time to trivial tasks and more time to solving complicated customer problems. And this can immediately improve your consumer experience, resulting in increased sales and profitability.

The growing supply chain across the world is also fueling the artificial intelligence in retail industry. Retailers may also use AI to improve the supply chain for their store. For instance, this technology can analyze your previous customers' purchasing trends and notify you immediately when you are about to run out of a particular product. This is important because if your clients don't feel confidence that you'll always have the products they require, they might patronize a different business. And it results in lost revenues, which hurts your bottom line.

The COVID-19 epidemic has had a negative impact on a number of economies worldwide. Governments all over the world are compelled to close retail facilities, storefronts, and import-export operations as a result, which has disrupted the supply chains as a whole. There have been considerable effects of the COVID-19 pandemic on consumer behavior, product demand, retail shop, manufacturing, and logistics services.

To increase customer interaction, well-known retail businesses continually invest in cutting-edge technologies; yet, a number of obstacles are expected to restrain industry expansion. For the management of online portals and in-store operations, large corporations and international merchants like Walmart have already incorporated artificial intelligence technology. However, due to a lack of infrastructure and technological know-how, small and medium-sized businesses as well as new start-ups now have difficulty using the technology.

Market Insights

The four categories of the global artificial intelligence (AI) in retail market are technology, deployment model, application, and region. The segmentation based on the technology includes natural language processing, machine learning and deep learning, and others (process automation and analytics). Based on deployment model, the segmentation includes on-premise and cloud. Application segment can be further divided into location-based marketing, predictive merchandising, in-store visual monitoring and surveillance, programmatic advertising, and other. According to technologies, the artificial intelligence (AI) industry for retail around the globe is expected to be dominated by the natural language processing segment. Additionally, the cloud sector will rule the artificial intelligence (AI) market in global retail marketplaces in terms of deployment model. Predictive merchandising will support segmental growth for artificial intelligence (AI) growth in retail markets globally based on application.

Global Artificial Intelligence (AI) in Retail Market Geographical Competition

The five geographical categories of the global AI in retail market are North America, Europe, Latin America, Asia-Pacific, and the Middle East and Africa. North America is anticipated to dominate the market in terms of market size throughout the projected period due to its early acceptance of new and developing technologies and the presence of the key industry players. Because more retailers are utilizing AI-based products and services, the APAC region is anticipated to expand at the greatest CAGR during the projected period.

Global AI in Retail Market Segment Analysis

Artificial Intelligence (AI) in Retail Market By Technology

·        Machine Learning and Deep Learning

·        Natural Language Processing

·        Others (Process Automation and Analytics)

Artificial Intelligence (AI) in Retail Market By Deployment Model

·        On-Premise

·        Cloud

Artificial Intelligence (AI) in Retail Market By Application

·        Programmatic Advertising

·        In-Store Visual Monitoring and Surveillance

·        Predictive Merchandising

·        Location-Based Marketing

·        Other

Artificial Intelligence (AI) in Retail Market Leading Companies

This section of the study honors the market's top vendors Amazon Web Services, Google LLC, International Business Machines Corporation (IBM), Intel Corporation, NVIDIA Corporation, Microsoft Corporation, SAP SE, Sentient Technologies, and Oracle Corporation.

Artificial Intelligence (AI) in Retail Market Regions