AI in Retail Market Size

AI in Retail Market Size

AI in Retail Market size valued at USD 6 billion in 2022 and is slated to witness over 30% CAGR from 2023 to 2032. Driven by the extensive use of product identification and computer vision technologies in retail warehouses.

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Artificial intelligence (AI) has wide-ranging applications and has become a future tool for advancement. Healthcare, automotive, manufacturing, and several other booming industries are increasingly integrating AI technologies for everyday tasks. The increased inclination of Gen Z toward online shopping trends in the new era of advanced businesses is accelerating the use of AI in the retail market. The expanding Gen Z population has created the most technology-savvy and mobile-friendly consumer base. Their strong preference to shop online is set to encourage traditional retailers to adopt AI solutions and services.

 Furthermore, cashier-less checkouts are another major benefit of integrating AI in the retail sector that is fueling the industry growth. Using computer vision and big data analytics, retailers are transforming routine shopping into intelligent shopping. For instance, in February 2022, Amazon rolled out its Just Walk Out cashier-less technology at its new Amazon Fresh grocery store in Ventura County, California, to offer customers a fully autonomous checkout option.

Complex organizational structures may restrain industry progression

The organizational framework of retailers is a major factor restraining the AI in retail market growth. Administrative culture can hinder the adoption of AI in businesses, especially in companies with underdeveloped analytical decision-making and digital transformation processes that create suspicion in algorithmic decision-making, fueled by the perception that studies and recommendations are unclear. As per KPMG’s Living in an AI World 2020 report, 62 percent of retail participants were not supportive of AI adoption due to a loss of job security. Nevertheless, artificial intelligence offers the potential to help individuals with tedious, time-consuming tasks, which is speculated to prompt retailers to adopt AI services.