9 Artificial Intelligence (AI) In Retail Statistics You Need To Know In 2023
DealAid curates artificial intelligence (AI) statistics in retail from public data, private organizations and other sources. You will find key trends and statistics for artificial intelligence in retail below. Please refer to the footnotes for original data sources.
*This resource will be updated with more statistics when more data becomes available.
1. Artificial intelligence in retail market is expected to reach $7.8 billion in 2023.
According to market research projections, the incorporation of artificial intelligence technology in the retail industry is forecasted to experience a significant surge in growth, with an anticipated value of $7.8 billion by the year 2023.
2. Artificial intelligence in retail is projected to grow at 30.3% CAGR reach $50 billion by 2030.
Based on a comprehensive analysis of market trends and industry forecasts, the integration of artificial intelligence technology in the retail sector is expected to exhibit a remarkable compound annual growth rate (CAGR) of 30.3% from 2023 to 2033, resulting in an impressive market value of $85 billion.
3. 80% of retailers in US expect to integrate AI into their operations by 2027.
As per a recent survey conducted among retailers in the United States, a staggering 80% of retail executives expressed their intention to incorporate artificial intelligence technology in their business operations by the year 2027, indicating a growing recognition of the potential benefits of AI-driven solutions in the retail industry.
4. 40% of retailers in US currently use AI in their business operations.
According to a recent market analysis of the retail industry in the United States, only 40% of retailers have adopted artificial intelligence technology as part of their current business operations, signaling a significant opportunity for growth and potential for increased efficiency and profitability through the implementation of AI-driven solutions.
5. Machine learning (38.9%) has the highest market share of AI in retail followed by natural language processing.
After conducting a comprehensive analysis of the current state of artificial intelligence in the retail industry, it was found that machine learning technology commanded the highest market share, accounting for 38.9% of AI-driven solutions implemented in the sector. The next most widely adopted AI technology was natural language processing, indicating the potential of these technologies to transform the retail industry through increased automation, data analysis and improved customer experience.
6. North America had the largest market of $2.3 billion or 38.5% for AI in retail in 2022.
Based on the latest market research and analysis, the region of North America was found to have the largest market share of artificial intelligence technology in the retail industry, with a substantial value of $2.3 billion, representing approximately 38.5% of the global market in 2022. This finding suggests that the retail sector in North America is particularly receptive to the implementation of AI-driven solutions and is likely to remain a key market for the foreseeable future.
7. Asia Pacific has the highest growth market of 31.5% CAGR for AI in retail.
According to the latest market research, the Asia Pacific region has emerged as the fastest-growing market for artificial intelligence technology in the retail sector, with an impressive compound annual growth rate (CAGR) of 31.5%. This finding highlights the significant potential for growth and adoption of AI-driven solutions in the region, which could have a transformative impact on the retail industry and drive significant economic growth over the coming years.
7. Nvidia, Microsoft, Google, SAP, Oracle and IBM offer software and hardware solutions for retailers that need AI services.
A number of major technology companies, including Nvidia, Microsoft, Google, SAP, Oracle, and IBM, have developed and currently offer a range of software and hardware solutions specifically designed to meet the AI-related needs of retailers. These solutions are tailored to help businesses in the retail sector harness the power of artificial intelligence in areas such as customer analytics, supply chain management, inventory optimization, and personalized marketing, among others.
8. Customer relationship management (CRM) has the highest use case of 21.5% among all AI services in retail.
A recent market analysis of artificial intelligence in the retail industry revealed that customer relationship management (CRM) was the most widely adopted AI service, accounting for 21.5% of all AI-driven solutions used in the sector. This finding suggests that retailers are increasingly recognizing the potential of AI-driven CRM systems to enhance customer engagement and satisfaction, as well as boost overall business performance through more effective data analysis and personalized marketing.
9. By 2035, integration of AI tools by retails can increase profitability by up to 59%.
According to projections, the incorporation of advanced artificial intelligence tools into the operations of retail businesses by the year 2035 has the potential to substantially enhance their financial gains, with estimated increases in profitability reaching as high as 59%.
There are many ways AI is being integrated into retail but most popular include: chatbots, customer behavior tracking, CRM, customer experience personalization, price optimization, supply chain and inventory management, visual and voice search, and recommendation engines.
The global AI retail market size was $6 billion in 2022 and expected to reach $7.8 billion in 2023 with 30.3% expected CAGR.
The most popular artificial intelligence technologies being implemented in retail are machine learning, natural language processing and computer vision.
Walmart uses AI by tracking customer purchases and recommending most relevant products based on customers purchase history. Walmart uses AI to make the customer experience in terms of products recommendations as seamless as possible.
Amazon uses AI for price optimization, recommendation engine, voice search and customer behavior tracking on its online platform. Amazon Go uses AI by integrating visual search, sensor tracking and customer data in their retail stores.