Artificial Intelligence (AI) in Retail Market size is anticipated to surpass USD 100 billion by 2032, according to a new research report by Global Market Insights Inc.
The report identifies the analysis of suspicious actions as the chief driver of the industry trends. As per NRF’s 2022 National Retail Security Survey, retailers reported a 26.5% increase in organized retail crimes, including shoplifting and violence. The survey also suggests that AI-based point-of-sale systems can easily detect price swapping in stores. Furthermore, the development of computer vision-based theft detection systems that use techniques, including object tracking, activity recognition, and posture estimation, is useful in avoiding these risks. AI-powered systems can review CCTV footage to find potentially suspicious movements and inform the staff, which is likely to play a vital role in market penetration.
Soaring use in online and offline retailing to increase AI services adoption
With respect to components, the AI in retail market from services segment valued at more than USD 800 million revenue in 2022, due to the rising implementation and integration of AI-based solutions among online and offline retail businesses. To cite an instance, in May 2022, IBM, a managed service expert, inked a collaborative agreement with Amazon Web Services to provide software-as-a-service. This deal was purposed to aid the company with built-in managed service, along with AI-based software development.
Growing requirement for expert advice and maintenance to accelerate professional services demand
Under services, the AI in retail market from professional services segment is estimated to amass substantial gains by 2032, on account of increasing emphasis of retailers on collaborating with professional service partners who can offer expert advice, maintenance, integration, and deployment services as well as unique offerings, such as software implementation, test plans, and product testing in labs, due to the widespread uptake of AI solutions. In November 2021, retail behemoth Macy’s Inc. hired AlixPartners, a management consultancy service, to cope with digital business and assess an e-commerce spinoff.
Increasing need for personalized shopping experiences to bolster machine learning segment growth
The report further cites that the machine learning technology segment is set to hold around 45% share of the artificial intelligence (AI) in retail market by 2032. The swelling implementation of intelligent algorithms by retailers to monitor consumer behavior and offer tailored shopping experiences is contributing to the market growth. Businesses can analyze customer purchasing patterns and historical data to automatically recommend products to customers. For instance, in November 2022, Alibaba, a Chinese e-commerce technology firm, launched ModelScope, an open-source MaaS (Model-as-a-Service) platform, which contains numerous AI models, including pre-trained models for international researchers and developers.
Browse key industry insights spread across 280 pages with 353 market data tables and 39 figures & charts from the report, “Artificial Intelligence (AI) in Retail Market Size, By Component (Solution [Chatbot, Customer Behavior Tracking, Customer Relationship Management (CRM), Inventory Management, Price Optimization, Recommendation Engine, Supply Chain Management, Visual Search], Service [Professional Service, Managed Service]), By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Application (Automated Merchandising, Programmatic Advertising, Market Forecasting, In-Store AI & Location Optimization, Data Science), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032” in detail along with the table of contents:
Soaring focus on customizing online shopping to augment AI usage for automated merchandising
The deployment of artificial intelligence for automated merchandising is set to remain high in the coming years. The AI in retail market share from the automated merchandising segment is poised to grow at over 30% CAGR from 2023 to 2032. Retailers adopt merchandising platforms to provide customers with a personalized shopping experience to boost their income based on the analysis of preferences for certain products. Thus, advancements in automated merchandising systems are likely to propel the market demand.
Strong inclination toward AI-based platforms to push Latin America industry growth
Get more details on this report - Request Free Sample PDF
As per the report, the Latin America AI in retail market size is expected to reach USD 3 billion by 2032, owing to the growing usage of AI in several industries. Moreover, the positive interest of consumers and firms in AI-based technologies and tools is further pushing regional market expansion. For instance, in November 2022, Muffato, a Brazilian supermarket corporation, opened its first automated store, Muffato Go. The store uses Sensei’s AI platform, the first AI-based market to utilize AI-based technologies for customer satisfaction.
Joint ventures for developing next-generation products to foster the competitive outlook
The competitive landscape of the industry is primed to showcase a range of strategic partnerships and product innovation tactics undertaken by companies. For instance, in February 2022, Jaguar Land Rover, a luxury automobile manufacturer, signed a multi-year deliberate partnership contract with NVIDIA, a graphic cards company, to develop and produce next-generation automated driving systems together with AI-assisted services and customer experiences. Major players involved in the artificial intelligence (AI) in retail market include IBM Corporation, Intel Corporation, Interactions LLC, Microsoft Corporation, Nvidia Corporation, and RetailNext Inc.
Explore More on Related Topics: