PUBLISHER: The Business Research Company | PRODUCT CODE: 1961554
PUBLISHER: The Business Research Company | PRODUCT CODE: 1961554
Artificial intelligence (AI) in retail refers to the application of advanced computing technologies that simulate human intelligence to enhance and automate various aspects of the retail industry. This includes leveraging AI algorithms and machine learning techniques to analyze vast amounts of data, predict consumer behavior, optimize inventory management, personalize customer experiences, and streamline operational processes.
The main components of artificial intelligence (AI) in retail are solutions and services. A solution refers to a comprehensive set of technologies, applications, or services that leverage AI to address specific challenges or enhance specific aspects of retail operations. It uses various technologies such as machine learning, natural language processing, chatbots, image and video analytics, and swarm intelligence, with multiple deployment mode include cloud and on-premise. The channels used are omnichannel, brick and mortar, pure-play online retailers, and used for customer relationship management, supply chain and logistics, in-store navigation, and inventory management product optimization.
Tariffs have influenced the artificial intelligence in retail market by increasing the cost of importing ai hardware, sensors, and advanced computing infrastructure, thereby impacting overall solution deployment budgets. Higher duties on semiconductors and electronics have particularly affected cloud and on-premise ai solutions used across omnichannel and brick-and-mortar retail formats, with asia-pacific and north america being the most impacted regions due to their reliance on global supply chains. These cost pressures have slowed implementation timelines for inventory management, visual analytics, and in-store ai systems. However, tariffs have also encouraged retailers and solution providers to invest in localized manufacturing, regional data centers, and software-centric ai solutions, supporting long-term market resilience and innovation.
The artificial intelligence (AI) in retail market research report is one of a series of new reports from The Business Research Company that provides artificial intelligence (AI) in retail market statistics, including artificial intelligence (AI) in retail industry global market size, regional shares, competitors with a artificial intelligence (AI) in retail market share, detailed artificial intelligence (AI) in retail market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in retail industry. This artificial intelligence (AI) in retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The artificial intelligence (AI) in retail market size has grown exponentially in recent years. It will grow from $15.4 billion in 2025 to $20 billion in 2026 at a compound annual growth rate (CAGR) of 29.9%. The growth in the historic period can be attributed to growth of e-commerce platforms, increasing retail data volumes, adoption of cloud-based retail systems, demand for improved customer experience, reduction in operational inefficiencies.
The artificial intelligence (AI) in retail market size is expected to see exponential growth in the next few years. It will grow to $57.06 billion in 2030 at a compound annual growth rate (CAGR) of 30.0%. The growth in the forecast period can be attributed to expansion of omnichannel retail strategies, rising investment in AI-powered analytics, growing demand for real-time consumer insights, increasing automation of retail operations, scalability of cloud-native ai solutions. Major trends in the forecast period include hyper-personalized customer engagement, real-time inventory optimization, AI-driven dynamic pricing strategies, computer vision-enabled in-store analytics, conversational commerce adoption.
The digital transformation in the retail industry is expected to propel the growth of artificial intelligence (AI) in the retail market going forward. Digital transformation refers to the comprehensive and strategic integration of digital technologies, processes, and capabilities across various aspects of an organization. Retailers globally are adopting digital processes and enhancing customer experiences, resulting in an increased demand for AI solutions. This integration of AI in retail, driven by the imperative of digital transformation, fosters innovation in tasks such as automation, personalized marketing, and trend prediction, improving operational efficiency and providing insights into customer behavior. For instance, in January 2024, according to a survey of 400 respondents conducted by NVIDIA Corporation, a US-based manufacturing and technology company, 69% of retailers reported increased annual revenue with AI adoption, 72% experienced lower operating costs, and over 60% plan to boost AI investments in the next 18 months. Therefore, the digital transformation in the retail industry is driving the growth of artificial intelligence (AI) in the retail market.
Major companies operating in the artificial intelligence (AI) retail market are developing advanced technologies, such as cloud-based solutions, to drive innovation and enhance efficiency in the retail sector. Cloud-based solutions refer to computing services, including storage, processing, and software applications, that are delivered over the internet (cloud) instead of relying on local servers or traditional computing infrastructure. For instance, in October 2023, Flipkart Private Limited, an India-based e-commerce company, launched Flipkart Commerce Cloud, which aims to help retailers across the world grow their businesses and solve business needs through intelligent and AI-driven solutions. This platform offers retail technology solutions for international retailers, marketplaces, and e-commerce platforms. The suite of solutions includes a complete marketplace technology stack, retail media solution, pricing solution, inventory management, and forecasting solutions, all built using artificial intelligence and machine learning
In July 2023, ServiceNow Inc., a US-based provider of digital workflow solutions, acquired G2k Group Gmbh for approximately $0.5 billion. This acquisition is aimed at boosting ServiceNow's AI capabilities and broadening its footprint in the retail IoT sector, enabling the development of an AI-powered end-to-end workflow solution on the ServiceNow platform that connects real-time data and intelligence, ultimately transforming retail experiences and creating opportunities across diverse industries. G2k Group Gmbh is a Germany-based cutting-edge technology company specializing in artificial intelligence (AI) and IoT solutions for the retail industry.
Major companies operating in the artificial intelligence (AI) in retail market are Alphabet Inc, Microsoft Corporation, Amazon.com Inc, International Business Machines Corporation, Oracle Corporation, SAP SE, NVIDIA Corporation, Salesforce Inc, Baidu Inc, C3.ai Inc, Databricks, Dataiku, Shopify Inc, Ocado Group, Trigo, Standard AI, Trax, ViSenze, Bloomreach Inc, Featurespace, Interactions LLC, Symbotic Inc, RetailNext, Pathr.ai, Graymatics, Focal Systems, Afresh Technologies, Standard Cognition, Brain Corp, Cortexica Vision Systems
North America was the largest region in the artificial intelligence (AI) in retail market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in retail market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the artificial intelligence (AI) in retail market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
The artificial intelligence (AI) in retail market includes revenues earned by entities by predictive analytics, personalized marketing, recommendation engines, fraud detection, visual search and recognition. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in retail market consists of sales of computer vision, voice commerce, dynamic pricing systems, and augmented reality (AR) systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Artificial Intelligence (AI) In Retail Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses artificial intelligence (ai) in retail market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for artificial intelligence (ai) in retail ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The artificial intelligence (ai) in retail market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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