Artificial intelligence (AI) in retail market expected to hit $40.74 Billion by 2030
According to a recent study by Grand View Research, Inc., the size of the global AI in retail market is predicted to reach USD 40.74 billion by 2030, growing at a CAGR of 23.9% from 2022.
The growth potential has been increased by the increasing popularity of cutting-edge technologies like voice recognition software and chatbots. Other key factors advancing the industry include the growth of online retail sales, increased focus on enhancing the customer experience, reliance on digital marketing, and supportive government regulations.
Key findings
Due to the increasing use of cutting-edge technologies, such as voice recognition software, the chatbots market is anticipated to grow at the fastest CAGR of 30.0% from 2022 to 2030.
As data analysis increases and touchscreens and mobile interfaces become more popular, natural language processing (NLP) will develop as well. For instance, the use of NLP in sentiment analysis of customer messages, call centre interactions, online reviews, and social media posts will continue to be crucial.
The Customer Relationship Management (CRM) segment held the largest revenue share in 2021, due to surging demand to boost customer retention and return on investments. CRM will also gain traction due to seamless communication, social media integration, and data collection for retail businesses.
AI in retail: trends
AI algorithms play a fundamental role in assessing data collated from consumers’ online behaviour, thus driving sales and aiding marketing. Additionally, AI-driven image and video analytics are increasingly popular to help filter and categorise images and other visual content.
The demand for AI in retail is anticipated to increase in the coming years as it enables better results and customer engagement in the virtual world. For instance, Google LLC introduced Product Discovery Solutions for Retail in January 2021. This product is a collection of services designed to increase the online sales potential of retailers and help them provide unique customer experiences.
Stakeholders predict that the virtual assistant segment will make a sizeable contribution to the global market. The popularity of voice-powered search queries and personalised shopping experiences is primarily responsible for the trend. However from a retail perspective, intelligent virtual assistants have significantly changed the dynamics of the industry, assisting retailers in effectively responding to customer inquiries.
Find out more
Read more findings and insights from Grand View Research