03.07.23
The global artificial intelligence (AI) in retail market is set to achieve a valuation of $85 billion by 2033, expanding at a remarkable CAGR rate of 30.3% in the next 10 years, Fact MR predicts. The global artificial intelligence in retail market currently stands at $6 billion.
North America captured 38.5% share of the global market in 2022, and machine learning accounted for 30% of the global market share in 2022. 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 substantial technology transformation potential, allowing retailers to enhance overall efficiency and profitability, according to the market research firm.
Big Data Analytics Drive AI Retail Market Growth
The global artificial intelligence in 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 US 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.
“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,” said a FactMR 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.