Fact.MR, a market research and competitive intelligence provider, reveals that the global artificial intelligence (AI) in the retail market is set to achieve a valuation of US$ 85 billion by 2033, expanding at a noteworthy 30.3% CAGR from 2023 to 2033.
Artificial intelligence in retail is ushering in a new era of how businesses track their operations to improve business strategies, give better outcomes, and communicate with customers in the digital world. Many established retailers around the world are dealing with rising costs, dissatisfied consumers, dwindling sales, and growing competition. As a result, retailers are implementing technology solutions to boost operational efficiency and improve customer interactions.
Numerous aspects of the retail industry, including supply chain management, inventory management, customer relationship management, and marketing and branding, have tremendous technology transformation potential, allowing retailers to enhance overall efficiency and profitability.
The global artificial intelligence in the retail market is rising rapidly due to factors such as greater knowledge of AI and big data analytics, increasing smart devices and internet users, growing amount of data in the retail industry, and strong government digitization programs. Moreover, the acceptance of an omnichannel or multichannel retailing strategy, enterprise requirements for streamlining business processes, untapped possibilities to boost sales efficiency, and the expanding need to improve end-user experience and capitalize on market dynamics are all contributing to global market growth.
North America controls the majority of global revenue. To improve customer service efficiency, retailers in the region are concentrating on extracting accessible data on customer preferences. The United States is the leading market in North America. The country is currently investing heavily in AI technology. Due to the increased demand for technology, the United States is also seeing the emergence of new small businesses and start-ups.
Asia Pacific and Europe are following North America in terms of development. The retail industry in Asia Pacific is undergoing a fast transformation. As a result, there is a greater demand for modern technologies to enhance operations and the customer experience.
Key Takeaways from Market Study
- The global artificial intelligence in the retail market stands at US$ 6 billion in 2023.
- Worldwide demand for artificial intelligence technology in retail is anticipated to increase at a CAGR of 30.3% from 2023 to 2033.
- The global AI in the retail market is forecasted to reach US$ 85 billion by 2033.
- North America captured a 38.5% global market share in 2022.
- Machine learning accounted for 30% of the global market share in 2022.
“AI is rapidly altering the retail industry by enabling businesses to personalize customer experiences, streamline supply chains, and boost operational efficiency. AI is also helping businesses obtain important insights into customer behavior and preferences, which can then be utilized to build more targeted and efficient marketing efforts,” says a Fact.MR analyst.
Winning Strategy
Leading companies are concentrating on launching innovative solutions to broaden their presence and gain market share.
- For example, Talkdesk, Inc. released an AI-based Talkdesk Retail Smart Service in June 2021, which provides automated self-service to customers and support personnel to focus on other significant revenue generation duties.
