What is Artificial Intelligence in Retail?

The Artificial Intelligence in Retail Market encompasses AI-driven technologies tailored to enhance decision-making, efficiency, and personalization across retail operations including merchandising, customer engagement, supply chain, and in-store experiences.

AI's integration in retail enables New levels of hyper-personalization, Easy automation of routine operations, Safe fraud detection systems, and Big scale analytics for strategic advantage. Retailers leverage AI for optimizing inventory, improving customer loyalty, enabling predictive logistics, and reducing shrinkage through real-time insights.

Market Size:

Artificial Intelligence in Retail Market was valued at USD 32 billion in 2024 and is projected to reach a market size of USD 161.73 billion by 2030 at a CAGR of 31%.

Key Market Players

•    Mason
•    NVIDIA
•    Talkdesk
•    Syte
•    SAP
•    Symphony AI
•    Trax
•    ServiceNow
•    Bloomreach
•    Feedzai
•    Accenture
•    IBM
•    Intel
•    Vue.ai
•    Google
•    AMD
•    Nextail
•    Amazon

Case Study: 

Trax’s AI-powered computer vision platform enabled a global convenience chain to digitize in-store shelf data in real-time. The result was a 20% improvement in shelf compliance and a 12% increase in sales due to optimal product placement and faster restocking.

Key Statistics and Trends:

•    Over 60% of retailers globally deploying AI tools in customer experience and logistics
•    AI-powered chatbots handle more than 80% of routine queries in online retail
•    Visual search adoption growing rapidly among fashion and electronics retailers

Market Segmentation:

By Type:

•    Customer Relationship Management
o    Personalized Recommendations
o    Chatbots and Virtual Assistants
o    Sentiment Analysis
•    Supply Chain and Logistics
o    Demand Forecasting
o    Inventory Optimization
o    Route Optimization
•    In-Store Operations
o    Smart Shelf & Planogram Compliance
o    Footfall Analytics
o    Computer Vision for Theft Prevention
•    Marketing and Advertising
o    Dynamic Pricing
o    Programmatic Advertising
o    Customer Segmentation
•    Merchandising and Assortment Planning
o    Product Categorization
o    Visual Search
o    Trend Forecasting
•    Fraud Detection and Prevention
•    AI-Based Product Search and Navigation
•    Others (Workforce Management, Store Layout Optimization)

By End User:

•    Supermarkets and Hypermarkets
•    Specialty Stores
•    Department Stores
•    Convenience Stores
•    E-commerce Platforms
•    Direct-to-Consumer (DTC) Brands
•    Fashion and Apparel Retailers
•    Consumer Electronics Retailers
•    Home Improvement Retailers
•    Pharmaceutical and Healthcare Retailers
•    Luxury Goods Retailers
•    Others (Automotive Retailers, Sporting Goods, etc.)

What’s in It for You?

•    Understand winning AI retail models from omnichannel to DTC
•    Identify whitespace in merchandising automation and customer analytics
•    Benchmark against key competitors’ use of AI in operations
•    Map evolving technology partnerships and retail AI ecosystems
•    Guide investment decisions in AI tools aligned with ROI metrics