The approximately US$2.5 Bn market for Artificial Intelligence in retail expects a stupendous growth outlook over the next few years. Deepening AI penetration across retail, and soaring applicability will drive Artificial Intelligence in retail market ahead.
Benefits Around Effective Product Optimisation to Fuel Growth of Artificial Intelligence (AI) in Retail Market
Adoption of Artificial Intelligence (AI) in retail empowers businesses with high-level data and information that is leveraged into improved retail operations, and new business opportunities. Business cannot risk losing insurmountable market share to their competitors and thus, adopting newer technologies to make accurate, data-driven business decisions becomes imperative. With the most sought-after benefits that retailers can count on are obtain an adaptive homepage, captivate customers, create exciting experience, create insights from disparate data, synchronise offline and online retail, and empower flexible logistics networks, the Artificial Intelligence in retail market is poised to rise high in the next few years. Dynamic outreach with improved customer engagement by real-time product recommendations, inventory management, visual search of the products, computer vision of the store, demand forecasting, predictive analytics, interactive chat (chatbots), visual curation (using data from the images and videos from IP cameras), guided discovery, conversational support, personalisation and customer insights, emotional response, customer engagement, operational optimisation, customised selections, and responsive R&D.
AI in retail market will increasingly focus on planning and product recommendations. Growth in artificially intelligent products, and services across various industrial domains, and verticals will be fuelled by developments in Big Data analytics. Machine learning, deep learning, natural language processing, and other technologies are used in AI, and Big Data to enable automated machine-driven decision making. This element is anticipated to enhance customer behaviour and analytics, increasing the importance of product optimisation. The debut of BH3 Production Optimization, an AI-based tool that enables well operators to monitor real-time production data, better forecast future production, and help optimise operations for enhanced oil and gas production rates, was announced by Baker Hughes and C3.ai in February 2020. By reducing the time between insights and action, artificial intelligence enables quicker business decisions in marketing, e-commerce, product management, and other business domains. These advantages are likely to uphold the growth of Artificial Intelligence in retail market.
According to the US Department of Commerce, retail sales in the United States are anticipated to reach US$5.99 Tn in 2023. According to the Consumer Technology Association, AI has various advantages for the retail sector, including cost savings, increased productivity, quicker problem-solving for businesses, quicker delivery of new goods and services, and increased innovation. While these benefits will continue to drive Artificial Intelligence in retail market forward, AI is also quickly gaining traction in many cutting-edge solutions, including autonomous vehicles, intelligent bots, and advanced predictive analytics.
Artificial Intelligence (AI) in Retail Market Gains Largely from Application of AI for Predictive Merchandising
According to the application, predictive merchandising is anticipated to control the highest proportion of the overall Artificial Intelligence in retail market size. A significant share of this sector in Artificial Intelligence in retail market is mainly attributable to retailers' increasing desire to learn crucial information about customers' reasons for making purchases and their purchasing behaviours, prompting them to employ the predictive merchandising solutions. Additionally, these solutions are becoming increasingly important for retail businesses as they search for proactive ways to harness new and broad data sources to keep a competitive edge in a quickly expanding industry. Additionally, the predictive merchandising category is anticipated to increase over the forecast period due to the technologies' ability to help planners discover unsold inventory in advance. This can improve inventory management, reducing instances of unsold goods and lowering costs.
North America Continues to Reap the First-mover Advantage in Artificial Intelligence (AI) in Retail Market
North America is the largest user of AI technology in retail industry. With the key economies, i.e., the US, and Canada emphasizing improved retail solutions, North America is predicted to hold the most significant revenue share in global Artificial Intelligence (AI) in retail market. A majority of leading AI solution suppliers are located across North America and the region has been the early adopter of AI technology. Many regions have implemented AI-based solutions to streamline their inventory management, and supply chain processes. Retailers use AI for better management, retention of their clientele, and improved comprehension of the evolving consumer purchasing behaviour. Both online and offline retail organisations are implementing AI technologies to engage customers and increase sales turnover.
Over the next several years, banking and retail industries are likely to spend over US$5 Bn on AI systems, with most of this spending going toward automated customer care agents, and product suggestion engines. Additionally, according to a PwC survey, almost 20% of the US firms intend to implement enterprise-wide AI solutions for service personalisation, and client comfort. To improve customer effectiveness, North America’s businesses focus on gathering the available data on consumer preferences. Additionally, the US was the first to deploy AI and is already reaping significant financial rewards. With the growing need for technology, the US has been observing a notable surge in small businesses, and start-ups. This is expected to fuel expansion of the Artificial Intelligence in retail market.
Several well-known retail stores worldwide have been struggling with rising costs, unsatisfied customers, dwindling sales, and burgeoning competition over the recent past. The situation has led merchants to employ technological tools that would boost consumer interactions, and operational efficiency. Inventory management, supply chain management, marketing and branding, and customer relationship management are only a few facets of retail that hold a massive opportunity for technology change and will allow merchants to increase overall efficiency and profitability. The Artificial Intelligence (AI) in retail market will thus gain.
Global Artificial Intelligence (AI) in Retail Market: Competitive Landscape
The retail sector will be included in SAP SE's cloud solutions in June 2020. The company uses AI solutions to offer better remote user experiences, digitisation, and operations automation to create and manage portfolio apps on its open cloud platform. The retailers’ core business would be served by SAP and its partners' solutions, such as machine learning algorithms that reveal unmet client demands and produce more relevant customised offers. On the other hand, in January 2020 - The European corporation SAS improved its intelligent planning suite with AI and cloud agility to support businesses in localising their assortments, optimising their inventories, automating forecasting, and maximising profits.
A few of the major players in artificial intelligence (AI) in retail market include Amazon Web Services (US), IBM (US), Oracle (US), NVIDIA (US), Microsoft (US), Intel (US), Sentient Technologies (US), Google (US), SAP (Germany), Salesforce (US), and ViSenze (Singapore).
Global Artificial Intelligence (AI) in Retail Market is Segmented as Below:
By Deployment Model
Key Elements Included In The Study: Global Artificial Intelligence (AI) in Retail Market
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