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Report Code: IM10832
Category : Software & Services
In recent times, artificial intelligence (AI) has become more prevalent in everyday life, as its adoption has been increasing in several areas, including digital assistance and autonomous vehicles. Artificial intelligence has gained huge interest of retail sector as brands and companies have rapidly started adopting this technology, realizing the benefits of automating their operations. Artificial intelligence has brought positive shift in the retail sector by improving the overall functional and operational efficiency. The technology is enabling retailers to handle key issues against retaining knowledge, detecting various frauds and making it easier to access the data. Through human like decision making processes, artificial intelligence provides significant benefits to both the shoppers and the sellers in the retail industry.
Combining big data in retail and natural language interface and machine learning, artificial intelligence is enabling higher and interactive customer experience and allowing transformation in the old customary process of engaging the retailers in aggressive customer management tasks. In retail sector, artificial intelligence is expected to drive critical business decisions faster in marketing, e-commerce and product lifecycle management through transitioning business operations from data to insights to more valuable actions.
The major factor driving the demand for artificial intelligence market in retail sector has been the rapid emergence of e-commerce worldwide. This has been encouraging the companies to offer enhanced customer experience. Retailers are reaching out to their customers at personal level, while engaging with them through deeper interactions and enhancing their brand value. Personalized online shopping, demand for greater digital customer experience, optimization of the supply chain, and improvement in inventory management are some of the factors driving the global artificial intelligence market in retail.
In addition, major advancement in computer vision technology is also fueling the growth of the artificial intelligence market in retail. Artificial intelligence allowing retail outlets to examine and analyze various customer behaviors through video recording helps retailers in taking necessary actions to streamline their sales and increase profit. Through artificial intelligence, retailers can optimize key strategic areas such as pricing and replenishment, and automate their business decisions through machine learning. This enables them to combine their quick decisions with their key performance indicators (KPIs) such as margins and volumes to take competitive advantage of dynamic market change and stay ahead of the competition. Therefore, the artificial intelligence market in retail has a huge scope for rapid growth.
Globally, North America and Europe witness greater demand for artificial intelligence solutions in the retail sector. The market is expected to witness the fastest growth in Asia-Pacific during the forecast period, due to huge growth opportunity in retail industry and emergence and rapid adoption of predictive technologies by major retailers.
A major challenge faced by retailers is maintenance of an appropriate amount of inventory, since ordering too much of inventory may be a huge waste of time and money. On the other hand, lack of enough inventory may lead to loss of potential customers. Artificial intelligence market in retail has immense growth opportunities with improvement in inventory management. Through the monitoring of weather patterns, dynamic consumer behaviors, and different purchasing rates, artificial intelligence can help retail owners to make informed decisions to manage their inventory and understand consumer needs.
In addition, there is immense opportunity for the artificial intelligence market in retail to gain potential growth through improvement in marketing and hiring of people. Through prescriptive and predictive modeling based on the marketing campaigns, historical sales, discounts, and competitor strategies, retailers can design their business strategies in a much more effective way, thus, converting audience to potential customers. The challenges for retailers in adopting artificial intelligence at a vast scale are lack of user expertise and difficulty in understanding different consumer behaviors to align their business. However, the advantages of using artificial intelligence within retail industry are expected to overcome such potential difficulties in near future.
Some of the major players in the artificial intelligence market in retail are IBM Corporation, Microsoft Corporation, Google Inc., NVIDIA Corporation, Intel Corporation, Sentient Technologies, and Numenta Inc.
Global Artificial Intelligence Market in Retail