A new report titled “Artificial Intelligence In Retail Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028)” by Reportlinker stipulates that the retail sector is changing due to the introduction of artificial intelligence, and that between 2023 to 2028, AI in retail market size is expected to grow from $7.3 billion in 2023 to $29.45 billion by 2028, at a CAGR (Compound annual growth rate) of 32.17%. Here are some key highlights of the report.
The most commonly used AI technologies – machine learning and deep learning – are used by organizations in the retail industry “to offer a more personalized experience to end-users and provide an interactive environment […]”.
Computer vision (a subset of deep learning in artificial intelligence), embraced by brick-and-mortar stores, “sees”and decodes visual information, and can move forward customer experience, demand forecasting, inventory management, and more.
Another AI-related subset, heat mapping, uses cameras and computer vision together to reveal “which items are taken, which are returned, and where customers go after leaving the shelf.”
Growing Adoption of AI
The report quoted a study by IBM Corporation, which says that the adoption of AI in retail and consumer products is expected to jump “from 40% of companies currently to more than 80% in three years.” Additionally, investments of retailers in AI-powered predictive and prescriptive analytics would “double in that time frame.”
According to the report, “many retailers” in the US and Canada “have deployed AI-based solutions to optimize their supply chain operations and inventory.”
The report further quoted the Consumer Technology Association, which says that AI has “different benefits in the retail industry, including cost-saving, increased productivity, faster resolution of business problems, faster delivery of new products and services, and an increase in innovation, which is rapidly making its way into many advanced solutions, including autonomous vehicles, smart bots, and advanced predictive analytics, in the retail space.”
Read the full report here.
