Artificial intelligence is quietly reshaping the retail world, not just with futuristic tech, but with real, measurable impact.
And the shift isn’t small. The AI in retail market is projected to reach $40.74 billion by 2030, growing at a 23% CAGR between 2025 and 2030.
From how products are stocked and priced to how shoppers discover and buy them, artificial intelligence quietly reshapes the entire industry.
And by 2035, AI is expected to boost retail efficiencies by a massive 59%.
What used to be guesswork is now powered by data. What used to take hours can happen in seconds.
This is happening, and the numbers prove it. Below, you’ll find verified, up-to-date, and trustworthy AI in retail statistics that reveal how deeply AI is embedded in the retail world, with a full list of reliable sources at the end.
1. The global artificial intelligence in retail market size was estimated at USD 11.61 billion in 2024 and is projected to reach USD 40.74 billion by 2030, growing at a CAGR of 23.0% from 2025 to 2030
(Grand View Research)
The retail industry is investing aggressively in AI to stay competitive. From dynamic pricing to real-time inventory tracking, retailers are embedding AI into almost every layer of their operations.
The projected growth rate reflects not just interest but actual adoption, fueled by pressure to improve margins and customer experiences. Larger chains are scaling AI initiatives faster, while smaller players are catching up through third-party platforms.
This surge is also driven by rapid advancements in generative AI, computer vision, and predictive analytics. As AI shifts from experimental to essential, the market value is following suit.
2. The global AI in retail market size projected to hit a staggering $45.74 billion by 2032
(Neontri)
This projection shows that AI’s role in retail isn’t peaking anytime soon. As adoption grows, so does the demand for smarter systems that can handle everything from automated checkout to customer sentiment analysis.
More retailers are shifting budgets from traditional tools to AI-first platforms, especially in areas like fraud detection, chatbot support, and demand forecasting.
3. The global AI in retail market size is projected to surge to $62.64 billion by 2034.
(Precedence Research)
As systems grow smarter and integration becomes more seamless, AI is expected to move from back-end support to customer-facing experiences at scale.
Tools that were once experimental, like virtual try-ons, AI-driven supply chains, and autonomous stores, are becoming mainstream. Retailers are also forming dedicated AI teams to innovate faster and respond to shifting consumer behavior.
4. By geography, the North America region accounts for more than 40% of the revenue share.
(Precedence Research)
North America’s dominance in AI retail revenue reflects both early adoption and aggressive investment. Major U.S. and Canadian retailers have led the charge by embedding AI into supply chains, customer analytics, and omnichannel strategies.
The region also benefits from close proximity to leading AI research hubs and tech companies that build retail-focused solutions. Retail giants are setting the pace, but mid-size and niche players are also expanding their use of AI.
5. By segment, the solution segment accounted for more than 72% of revenue share.
(Precedence Research)
Solutions dominate because that’s where retailers see immediate value. AI-powered tools like recommendation engines, demand forecasting systems, and visual search features are being rapidly deployed to improve both backend efficiency and customer-facing experiences.
Most companies prefer ready-to-use or customizable AI software over building in-house systems, which shortens deployment time and lowers risk.
6. In terms of technology, the machine learning segment accounted for more than 31% of revenue share.
(Precedence Research)
Machine learning leads because it powers some of the most impactful applications in retail today. From forecasting demand to optimizing pricing, ML algorithms help retailers make smarter, faster decisions using real-time data.
This segment has gained momentum as more businesses move away from gut-based decisions and toward data-driven operations. ML models constantly improve with more inputs, giving companies a growing edge over time.
7. By sales channels, the pure-play market segment gained a sizeable revenue share.
(Precedence Research)
Pure-play retailers, operating entirely online, are often the first to adopt and scale AI. With no physical storefronts to maintain, their focus is fully digital, making it easier to integrate AI into every customer touchpoint.
These brands rely heavily on recommendation engines, personalized search, automated customer service, and dynamic pricing to stay competitive. Since data is at the core of their operations, AI fits naturally into their growth strategies.
8. By application, the customer relationship management segment accounted for around 21.50% of revenue.
(Precedence Research)
Retailers are heavily leaning on AI to improve how they manage and maintain customer relationships. With shoppers expecting faster, smarter, and more personalized interactions, AI-driven CRM tools are becoming essential.
These systems track behavior, predict needs, and automate communication in ways traditional CRMs can’t match. AI helps brands send the right message at the right time through the right channel, whether it’s an offer, a reminder, or product recommendations.
9. The U.S. artificial intelligence (AI) in retail market size was estimated at USD 3.26 billion in 2024 and is predicted to be worth around USD 18.19 billion by 2034, at a CAGR of 18.76%.
(Precedence Research)
The U.S. retail sector is scaling AI faster than most markets, driven by fierce competition and high customer expectations. Retailers are under pressure to cut costs, personalize experiences, and respond quickly to shifting trends, and AI is answering that call.
From warehouse automation to AI chatbots handling customer service at scale, U.S. brands are embedding smart systems deep into their operations.
10. AI is expected to improve retail efficiencies by +59% by 2035.
(Knight Frank)
This level of efficiency gain shows just how deeply AI is set to impact retail operations. From optimizing supply chains to automating repetitive tasks, AI helps retailers reduce waste, speed up decision-making, and free up human teams to focus on higher-value work.
Retailers are using AI to forecast demand more precisely, restock faster, and personalize experiences without manual effort.
11. Generative AI in e-commerce has been forecasted to reach $2.1 billion by 2032.
(Capgemini)
Generative AI is unlocking new ways for e-commerce brands to attract, convert, and retain customers. From auto-generating product descriptions to creating personalized images, videos, and even entire ad campaigns, it’s changing how content gets made, and how fast.
What once took days now happens in seconds. The projected market growth shows how quickly businesses are adopting these tools to stand out in crowded digital spaces.
12. 80% of retail executives will adopt AI within the next three years.
(Content at Scale)
Leaders are recognizing that staying competitive means automating smarter, reacting faster, and delivering more value to customers with less friction.
AI is being added to roadmaps across departments, from operations and marketing to merchandising and customer service.
13. 78% of surveyed retail executives plan to invest from $500,000 to $5 million.
(Chain Storeage)
These mid- to high-level investments allow companies to go beyond pilot programs and move to full-scale implementation. The focus is shifting from “if” AI should be used to “where” it can deliver the most impact.
Whether it’s smarter demand planning, automated customer service, or predictive analytics, executives are putting real money behind transformation.
14. 49% of retail respondents believe AI offers “substantial” benefits, 51% said AI benefits include innovation, 49% said reduced risk, 45% said increased sales, and 43% said AI helps with marketing campaign personalization.
(Chain Storeage)
Innovation tops the list, signaling that AI isn’t just improving what exists but creating entirely new ways to operate. Risk reduction is another key win, with AI helping forecast demand more accurately and flag potential issues early.
Increased sales point to AI’s growing role in driving conversions through smarter targeting and faster response times.
15. Only 39% of marketers are using AI to create new experiences for customers.
(SAP Emarsys)
This low adoption rate highlights a significant gap between AI’s potential and its actual use in marketing.
While many brands are leveraging AI for efficiency, fewer are tapping into its creative power to craft entirely new experiences. That means missed opportunities, from interactive product discovery to personalized storytelling that adapts in real time.
16. 72% of retailers already using AI say they experienced a decrease in operating costs.
(SAP Emarsys)
Cost reduction is one of the clearest and fastest wins for retailers adopting AI. By automating repetitive tasks, optimizing inventory, and reducing human error, AI helps businesses operate leaner without sacrificing performance.
These savings can show up in unexpected places, including fewer returns, faster fulfillment, smarter staffing, and even lower energy use.
17. Through improving digital customer interactions, artificial intelligence could bring in an extra $310 billion for the retail sector.
(Neontri)
This projected revenue boost shows the massive upside of getting customer interactions right with AI. From faster response times to hyper-personalized shopping journeys, AI makes digital experiences smoother, smarter, and more satisfying.
When customers feel seen and understood, they spend more and come back more often. AI is helping retailers remove friction at every step, whether it’s chatbots solving issues instantly or smart recommendations increasing average order value.
18. 79% of retail marketers use AI to personalize content and campaigns.
(SAP Emarsys)
Personalization has moved from a nice-to-have to a must-have, and AI is the engine making it possible at scale.
This kind of precision wasn’t possible with traditional tools. AI analyzes browsing behavior, purchase history, and even engagement patterns to deliver content that feels handpicked without manual work.
19. 43% of retailers are piloting autonomous AI, and another 53% are evaluating its uses.
(SAP Emarsys)
Retailers are moving quickly toward a future in which AI can operate with less human oversight. Piloting autonomous AI means testing systems that can make decisions, adapt to changing inputs, and learn from their own outcomes.
These pilots often start with narrow tasks, such as managing stock levels or rerouting deliveries, but the long-term goal is broader automation that runs entire workflows.
20. 70% of retail marketers use AI to optimize campaign performance in real time.
(SAP Emarsys)
Real-time optimization is where AI proves its value on the fly. Instead of waiting for post-campaign analysis, marketers can now adjust creative, targeting, and spend while a campaign is live.
This agility helps teams maximize return on every dollar spent. In fast-moving markets, real-time response isn’t a luxury. It’s a major competitive edge.
21. 58% of retail marketers report increased customer loyalty through AI.
(SAP Emarsys)
AI helps marketers deliver exactly that by learning customer preferences and responding with relevant offers, reminders, and messages. The result is a stronger emotional connection and more repeat visits.
When customers feel understood, they’re more likely to stick around. AI also helps brands recognize loyalty signals early, like shifting behaviors or disengagement, and respond before customers drift away.
22. 60% of retail marketers report increased customer engagement through AI.
(SAP Emarsys)
With real-time personalization, smarter targeting, and dynamic content, brands are cutting through the noise and capturing attention faster. AI tools adjust messaging based on individual behavior, making each interaction feel relevant and timely.
That keeps customers clicking, exploring, and responding. More engagement means more data, which means even better campaigns next time. It’s a cycle of improvement that builds real momentum.
23. 66% of retail marketers use AI to predict future consumer behavior.
(SAP Emarsys)
AI enables marketers to spot patterns, trends, and shifts before they’re obvious. Whether it’s anticipating when someone might reorder or predicting which products they’ll click on next, AI takes the guesswork out of planning.
This level of foresight helps retailers stay ahead of demand, reduce churn, and personalize offers more effectively.
24. 71% say AI helps them launch marketing campaigns faster, saving an average of 2.3 hours per campaign.
(SAP Emarsys)
Speed matters in marketing, especially when trends shift daily, and customer attention spans shrink. AI is helping marketers reduce repetitive setup tasks, generate content faster, and automate testing that used to take hours.
Saving over two hours per campaign gives teams more time to focus on strategy, creative direction, and performance analysis.
25. 72% say AI frees their team to focus on more creative work by reducing repetitive tasks.
(SAP Emarsys)
Repetitive tasks eat up time and energy that creative teams could spend on work that actually moves the needle. AI is shifting that balance. By handling tasks like audience segmentation, A/B testing, and content scheduling, it gives marketers more room to think, experiment, and build new ideas.
26. 88% of retail respondents believe Gen AI will have a medium to high impact on their retail businesses.
(EY)
Generative is now viewed as a real force for transformation. Retailers expect it to impact everything from how content is created to how customers interact with brands online.
This belief reflects growing confidence in Gen AI’s ability to drive speed, scale, and personalization across multiple touchpoints. Retail teams are already testing its use in product descriptions, chatbot conversations, and automated visuals.
27. 50% of retailers already claim to use AI “in some form.”
(Knight Frank)
“In some form” covers a wide range, but it signals that retailers are moving from theory to action.
Even small steps, like AI-assisted email subject lines or dynamic pricing, can make a noticeable impact. Adoption at this level also creates pressure for the rest of the market to catch up.
28. 28% of retailers consider AI a top investment priority
The retailers making it a top priority are betting on smarter automation, deeper insights, and better customer experiences. They’re not just looking for small wins. They’re aiming to reshape how their businesses operate.
As more success stories emerge, this percentage is expected to rise. For now, these early prioritizers are positioning themselves to lead while others play catch-up.
29. 40% of retailers lack the funds to implement AI strategies
This funding gap creates a divide between businesses able to move quickly with AI and those left behind. It also highlights the need for scalable, affordable solutions that don’t demand a full tech overhaul.
As AI becomes more accessible through cloud-based platforms and modular tools, this challenge may ease. But for now, limited budgets are keeping many retailers stuck in planning rather than doing.
30. 42% of surveyed retailers already use AI, and 34% are assessing or piloting AI initiatives.
(Nvidia)
The retailers already using it are likely focused on core areas like personalization, supply chain optimization, or automated support. Meanwhile, those piloting are testing where AI fits best in their operations.
This momentum creates a ripple effect. As more companies find success, others are pushed to act faster to stay competitive. With over 75% either using or testing AI, full-scale adoption across the industry is no longer a question of if, but when.
31. 14% of retailers lack AI technologies relevant to their business needs.
Off-the-shelf solutions don’t always fit every retail model, especially for niche markets or unique workflows.
Some businesses find that current tools are too generic, too complex, or not aligned with their customer journey. As AI continues to mature, retailers need more tailored options that solve specific problems without heavy customization.
32. Larger retailers with annual revenues exceeding $500 million reveal a more pronounced trend: 64% already use AI, 55 percent more than the total retail industry adoption rate.
(Nvidia)
Big retailers are moving faster with AI because they have the resources, teams, and urgency to make it work at scale. These companies are also more likely to have in-house talent or partnerships with AI vendors, giving them an edge in implementation.
The gap between large retailers and the rest of the industry points to a widening divide. While smaller players experiment or hold off, enterprise-level businesses are already deeply embedding AI into their core strategies and gaining ground as a result.
33. 65% of retailers say they understand AI “well” or “very well.”
(Knight Frank)
That shift matters because smarter decisions come from informed leadership. Knowing the strengths and limits of AI helps teams avoid hype and focus on high-impact use cases.
It also builds confidence in rolling out strategies across marketing, logistics, and customer service.
34. 67% of retailers have ‘clear AI investment plans.
(Knight Frank)
Clear investment plans mean there’s internal alignment, defined goals, and a roadmap to move from idea to execution. This signals maturity in the way businesses are approaching AI.
These plans often include budgeting for tools, training, and integration and sometimes restructuring teams to support AI-driven operations.
35. Over 60% of retail respondents plan to increase their AI infrastructure investment in the next 18 months.
(Nvidia)
That includes investing in stronger data systems, cloud platforms, and integrated workflows that can handle real-time AI processes. As use cases expand, retailers need back-end systems that can keep up.
This level of commitment also signals confidence in AI’s value. Instead of one-off projects, companies are preparing to embed AI into daily operations.
36. Over 50% of retail respondents prefer to deploy a hybrid approach for their AI solution.
(Nvidia)
For many retailers, this model makes sense. It supports real-time personalization without sacrificing compliance or internal oversight. Hybrid solutions also help brands manage costs, adapt faster, and scale AI where it’s needed most.
37. 54% of surveyed retailers say they have adopted more than 6 AI use cases in their business. 16% of retailers have only adopted AI in 1 or 2 use cases. The remaining 30% have done so in 3–5 use cases.
(Nvidia)
This spread shows how differently retailers are approaching AI, from cautious pilots to full-scale integration. Over half are already applying AI across 6 or more areas, suggesting deep operational commitment.
These use cases likely cover everything from demand forecasting and customer service to pricing, marketing, and fraud detection. Meanwhile, the smaller group just starting out is still testing the waters or working through barriers like cost or complexity.
The middle 30% represents the tipping point, with retailers building momentum and likely to expand fast.
38. Of respondents currently using AI, 69% believe AI has contributed to an increase in their annual revenue.
(Nvidia)
Whether through smarter pricing, better targeting, or more efficient supply chains, AI is helping retailers unlock new revenue streams and increase conversion rates. These gains often come from doing more with the same resources, powered by automation and faster decision-making.
39. 28% of retailers using AI report an increase between 5 and 15 percent, and an additional 15% of retailers using AI report a rise above 15 percent.
Increases of 5-15 percent are meaningful, especially at scale, and the 15% of retailers reporting even higher growth suggest that when AI is used well, the payoff can be substantial.
These results often come from optimizing pricing, reducing cart abandonment, improving personalization, or increasing upsell success. It’s also a sign that AI is driving front-end performance.
40. C-suite executives reported even more robust results, with 57% stating that AI has driven annual revenue increases and 15% or more in operating cost reductions.
When more than half of C-suite leaders report double-digit revenue gains and cost savings, it confirms that AI is delivering at the highest level. These aren’t surface-level improvements.
They’re strategic wins that reshape profit margins and free up resources. Executives seeing this kind of return are more likely to scale AI deeper into their organizations, expand into new use cases, and build long-term roadmaps around it.
41. Personalized recommendations drive 35% of purchases on Amazon
Over a third of purchases come directly from these AI-powered suggestions. The system isn’t just recommending random items.
It’s anticipating what customers might want next and offering it at exactly the right moment. This approach keeps customers engaged, increases cart size, and boosts repeat purchases.
42. 75% of retail decision-makers believe that generative AI is an important way for retailers to reinvent themselves.
(PR Newswire)
From creating on-brand content in seconds to building virtual shopping assistants and immersive experiences, generative tools are giving retailers entirely new ways to connect with customers.
Whether through faster creative production or entirely new service models, generative AI is seen as a path to staying relevant, fresh, and competitive in an industry that never stops moving.
43. 59% of surveyed retail executives want to use generative AI to streamline customer service with less human intervention.
(PR Newswire)
Customer service is one of the most resource-heavy parts of retail, and generative AI is making it smarter and faster.
Executives are eyeing it as a way to handle common questions, process requests, and even manage complex interactions with fewer human touchpoints. With generative AI, responses can feel more natural, personalized, and helpful than traditional chatbots.
44. 49% of respondents want generative AI to speed up product categorization and create compelling customer-centric marketing copy.
Product categorization is tedious but critical, and getting it wrong can mean missed sales and poor search results. AI can handle it in seconds, tagging items with precision based on images, descriptions, and patterns across platforms.
On the creative side, marketers are using generative AI to write headlines, descriptions, and promos tailored to different audiences without starting from scratch.
For nearly half the industry, these two applications represent a clear way to save time, reduce manual effort, and keep messaging sharp and relevant.
45. 44% want to use generative AI to empower retail creative teams to curate unique images and innovative content for campaigns.
Creative teams are under constant pressure to deliver fresh, eye-catching content. Generative AI is becoming a creative partner, helping them produce visuals, concepts, and assets that are original, brand-aligned, and ready to scale.
Instead of relying solely on stock photos or long production cycles, teams can use AI to test new ideas, generate multiple versions, and refine visuals based on campaign goals.
46. 40% of retail decision-makers want to use generative AI to provide interactive responses to shopper inquiries.
Generative AI is giving retailers a way to meet those expectations with dynamic, conversational responses that feel more human.
Instead of pre-programmed scripts, AI can tailor replies based on context, tone, and intent, making customer support feel more like a real conversation.
47. 38% want to use generative AI to create internal knowledge articles from existing data sources automatically.
Generative AI offers a way to turn that scattered data into clear, usable content without the manual lift. Automating internal documentation helps teams stay aligned, speeds up onboarding, and ensures employees have fast access to consistent answers.
Whether it’s generating how-to guides, FAQs, or internal wikis, AI helps keep knowledge fresh and organized.
48. Traffic from generative AI sources results in 10 percent higher engagement, 32 percent longer site visits, and 27 percent lower bounce rates when compared to non-AI sources like traditional search engine results pages.
That’s a strong signal that AI-suggested content is more relevant and aligned with user intent. These users aren’t just skimming. They’re exploring, clicking, and interacting with the site in meaningful ways.
For retailers, this means a higher conversion rate and a deeper brand connection.
49. 67% of retailers believe autonomous AI will bring mostly opportunities.
(Adobe)
This belief reflects growing trust in AI’s ability to handle complex tasks accurately and efficiently.
Retailers see opportunities to scale operations, reduce delays, and stay responsive without adding more workload to their teams. The focus is shifting from fear of automation to excitement about what it can unlock.
50. 81% of retailers trust AI to act autonomously with sufficient guardrails
Retailers are open to letting AI take the lead on tasks such as pricing, product recommendations, and inventory adjustments as long as guardrails are in place.
The high level of trust suggests retailers are seeing strong results from early automation efforts and are ready to expand. With well-defined limits, AI can act independently without risking mistakes that impact customer experience or revenue.
51. 22% of shoppers use AI for product discovery and inspiration at least occasionally,
(Salesforce)
Whether it’s through chatbots, visual search, or generative tools that suggest styles or bundles, AI is becoming a discovery engine. This behavior shift points to a growing comfort with AI-powered experiences that feel more like conversations than transactions.
52. Only 24% of consumers are comfortable sharing data with an AI shopping tool
Concerns around privacy, transparency, and control are holding back wider acceptance. For retailers, this means earning trust by clearly communicating how data is collected, protected, and used to improve the customer experience.
Until then, even the smartest tools may be limited by hesitation at the source: the shopper.
53. Gen Z shoppers are 10x more likely (20%) than baby boomers (2%) to frequently use AI to discover new products.
Gen Z is growing up with AI as part of everyday life, from personalized playlists to smart assistants, so using it to find new products feels natural. They’re drawn to fast, interactive, and hyper-personalized experiences that traditional search just doesn’t offer.
On the other hand, baby boomers tend to rely more on familiar channels and may not fully trust or understand AI-driven tools.
54. Gen Z shoppers are 2.7 times more likely than baby boomers to be interested in receiving product recommendations from AI.
This generation is used to curated experiences, whether it’s in their news feed, streaming queue, or shopping cart. AI-powered recommendations feel like a natural extension of how they already interact with digital platforms.
Baby boomers, by contrast, tend to prefer more control and transparency in their shopping journey.
55. Over half of Gen Z and 39 percent of the general population already use AI for product discovery.
More than half of Gen Z is already turning to AI to surface new products, whether through smart search tools, visual discovery, or conversational assistants.
The broader population is catching up fast, with nearly 4 in 10 using AI in some form to explore options. This shift reflects a growing demand for shopping experiences that feel curated and efficient rather than random or time-consuming.
56. 20% of shoppers have used AI for customer service, and 18% for purchases at least occasionally.
One in five shoppers is already interacting with AI-powered support, from chatbots answering questions to virtual assistants resolving issues.
Nearly as many have used AI to help complete a purchase, whether through guided selling tools, smart recommendations, or conversational checkouts. These touchpoints show that AI is becoming a trusted part of the decision-making process.
Sources:
AI In Retail Statistics
1. The global AI in retail market size was valued at U.S. $7.14 billion in 2023.
(Fortune Business Insights)
According to a report, the market size is expected to grow at a CAGR of 31.8% between 2024 and 2032, from U.S. $9.36 billion in 2024 to U.S. $85.07 billion in 2032.
2. By 2026, 80% of retailers will be using AI in some form to improve their business operations
(Gartner)
AI will play an increasingly crucial role in retail as businesses recognize its potential to enhance various aspects of their operations.
For instance, retailers might employ AI-driven chatbots to provide personalized shopping recommendations to customers. Machine learning algorithms can also help businesses optimize pricing strategies and product assortments.
As retailers seek to stay competitive in a rapidly evolving market, it’s clear that many are turning to AI as a powerful tool to enhance efficiency, boost customer engagement, and drive growth.
3. 80% of retail executives will adopt AI within the next three years.
(Content at Scale)
4. 78% of surveyed retail executives plan to invest from $500,000 to $5 million in AI in 2024.
(Chain Storeage)
Over the years, retail executives have gradually trusted AI to revolutionize their businesses.
These executives recognize AI’s competitive edge, streamlining operations, enhancing customer experiences, and providing valuable data-driven insights.
5. Approximately half (49%) of retail respondents believe AI offers “substantial” benefits.
(Chain Storeage)
Of these respondents, 51% said AI benefits include innovation, 49% said reduced risk, 45% said increased sales, and 43% said AI helps with marketing campaign personalization.
6. Generative AI can potentially increase retail profitability by 20% by 2025.
(EY)
Generative AI involves algorithms capable of creating new data based on existing information.
It can revolutionize product design and development, enabling retailers to generate new, unique designs or product variations based on customer preferences and market trends.
Additionally, it could streamline supply chain operations, helping businesses forecast demand more accurately and optimize their inventory levels accordingly.
7. 71% of retail companies in India intend to implement it within the next year, demonstrating its perceived value.
(EY)
8. 88% of retail respondents believe Gen AI will have a medium to high impact on their retail businesses.
(EY)
9. AI is expected to improve retail efficiencies by +59% by 2035.
(Knight Frank)
AI can drive efficiencies across various aspects of retail operations.
For instance, AI-powered demand forecasting can help retailers better predict customer preferences and buying patterns. This enables them to optimize their inventory levels and reduce waste.
In the supply chain, AI can streamline logistics and transportation processes, reducing delivery times and costs.
AI can also enhance customer experiences, using data-driven insights to provide personalized product recommendations.
10. 50% of retailers already claim to use AI “in some form.”
(Knight Frank)
However, only 28% consider AI a top investment priority, and 40% lack the funds to implement AI strategies.
11. 65% of retailers say they understand AI “well” or “very well.”
(Knight Frank)
Retailers are increasingly aware of AI’s potential benefits and applications within their industry and are actively seeking to stay informed and educated on the subject.
Retailers who understand AI technology can better identify opportunities to implement it, whether through advanced analytics, automated processes, or personalized customer experiences.
12. One-third of UK consumers believe customer service has deteriorated, and 50% cite chatbots as a source of frustration.
(Knight Frank)
In the UK, some consumers are dissatisfied with their customer service experiences, particularly with chatbots.
Many businesses have adopted chatbots to provide customer support and improve efficiency. However, these chatbot’s performance could be better than customer expectations.
It is expected due to chatbots’ inability to understand complex queries or provide accurate solutions. There’s also the perceived lack of empathy.
Chatbots only respond to preprogrammed queries, so customers can become frustrated when they receive a valuable response to their unique query.
13. According to reports, 67% of retailers have ‘clear AI investment plans.’
(Knight Frank)
More retailers are seeing the value of AI and the possibilities of incorporating it into their business operations.
AI in business operations enhances efficiency, reduces costs, and provides a competitive edge in an ever-evolving market. It also revolutionizes customer experience through personalized services and streamlined processes.
However, 40% see a lack of available funding as the second most significant barrier to implementation.
14. Over 60% of retail respondents plan to increase their AI infrastructure investment in the next 18 months.
(Nvidia)
15. Over 50% of retail respondents prefer to deploy a hybrid approach or their AI solution.
(Nvidia)
Retailers aim to capitalize on cloud-based AI services’ scalability, cost-effectiveness, and robustness while maintaining control, security, and customization from on-premises deployments.
16. 42% of surveyed retailers already use AI, and 34% are assessing or piloting AI initiatives.
(Nvidia)
However, 14% lack AI technologies relevant to their business needs.
17. Larger retailers with annual revenues exceeding $500 million reveal a more pronounced trend: 64% already use AI, 55 percent more than the total retail industry adoption rate.
(Nvidia)
18. 54% of surveyed retailers say they have adopted more than 6 AI use cases in their business.
(Nvidia)
From streamlining inventory management to enhancing personalized marketing, these numerous use cases highlight AI’s adaptability and transformative potential in the retail sector.
16% of retailers have only adopted AI in 1 or 2 use cases. The remaining 30% have done so in 3 – 5 use cases.
19. Of respondents currently using AI, 69% believe AI has contributed to an increase in their annual revenue.
(Nvidia)
28% reporting an increase between 5
and 15 percent and an additional 15% reporting a rise above 15 percent.
C-suite executives reported even more robust results, with 57% asserting that AI has driven both an annual revenue increase and an operating cost
decrease above 15%
20. Among all retailers, 68% invested less than $5 million in AI infrastructure in 2023.
(Nvidia)
21. 75% of retail decision-makers believe that generative AI is an important way for retailers to reinvent themselves.
(PR Newswire)
Generative AI’s ability to create original content, such as tailored product designs and personalized marketing materials, helps retailers enhance customer experiences and drive innovation.
As more retailers recognize the significance of generative AI, its impact will redefine the very essence of retail and propel the industry toward a future brimming with untapped possibilities.
22. 59% of surveyed retail executives want to use generative AI to streamline customer service with less human intervention.
(PR Newswire)
These retail executives want to use AI to provide conversation summaries, automate tasks, and drive conversion.
- 49% of respondents want generative AI to speed up product categorization and create compelling customer-centric marketing copy.
- 44% want to use generative AI to empower retail creative teams to curate unique images and innovative content for campaigns.
- 40% of retail decision-makers want to use generative AI to provide interactive responses to shopper inquiries.
- 38% want to use generative AI to create internal knowledge articles from existing data sources automatically.
23. Almost 60% of businesses rely on fully automated AI-powered marketing campaigns to deliver customer content.
(Retail Economics)
AI technology optimizes marketing strategies by analyzing consumer behavior, anticipating customer needs, and tailoring content accordingly.
As AI’s prowess in data-driven personalization advances, businesses increasingly entrust it with curating engaging and impactful marketing campaigns.
24. 54% of retail marketers use AI-driven personalization across channels to drive business growth.
(Retail Economics)
Multichannel marketing leverages various platforms, like email, social media, and mobile apps, to engage with customers.
AI automates tasks such as data analysis and content distribution, enabling marketers to focus on crafting creative strategies that foster meaningful connections with customers.
AI-driven insights guide marketers in allocating resources effectively, ensuring maximum return on investment for each channel.
The AI technology automates tasks such as data analysis and content distribution. This enables marketers to focus on crafting creative strategies that foster meaningful connections with customers.
25. After launching generative AI deployments in 2023, 72% of retail executives were pleased with their performance and outcomes, while approximately 28% were not.
(PR Newswire)
26. Almost 70% of retail companies surveyed said virtual assistants would be one of the industry’s most disruptive forces.
(Retail Economics)
Virtual assistants engage customers in personalized interactions, breathing new life into shopping experiences.
Retailers embracing virtual assistants discover opportunities to enhance customer service, provide round-the-clock support, and foster loyalty through tailored product recommendations.
Additionally, virtual assistants help streamline operations and reduce costs by automating tasks like inventory management.
27. North America dominated the AI retail market in 2023.
(Fortune Business Insights)
However, the Asia Pacific is projected to have the highest growth rate. China secured a 23.4% share of AI investments in its commerce and retail industry. Thus, the investments are expected to reach U.S. $18.8 billion by 2027.
28. Over 53% of retailers stated that they would prioritize AI investment in their warehousing and distribution divisions.
(Retail Economics)
However, 46.9% said they wanted to improve their buying and merchandising with AI.
29. Nearly 85% said they thought that AI-powered data analytics would enable more sophisticated targeting of customers.
(Retail Economics)
With machine learning and AI-powered data analytics, retailers can “mine” through a vast consumer data collection, discovering patterns and preferences.
From the insights they have gotten, retailers can craft more precise and effective marketing strategies.
And in turn, they’ll foster deeper connections with their customers and drive growth.
30. Over 50% of retailers and consumer brands believe AI-powered inventory management systems will improve demand planning, replenishment, and stock rotation.
(Retail Economics)
Two-thirds of shoppers said they would visit a store if they could check real-time product availability online beforehand.
31. According to a survey of retail and consumer brands, 36% believe autonomous vehicles will significantly impact the industry.
(Retail Economics)
FAQs
What Percentage of Retailers Use AI?
According to Statista, almost 40% of retail directors say they used artificial intelligence (AI), computer vision (CV), and machine vision (MV) for selected operations and departments.
How Big is the Retail Market for Artificial Intelligence?
The retail market for artificial intelligence is currently worth $9.36 billion in 2024. It is expected to rise to U.S. $ 85.07 billion in 2032
How is AI Used in the Retail Industry?
AI assists retailers with demand forecasting, pricing decisions, and product placement.
How has AI Impacted the Retail Industry?
AI impacts the retail industry by automating many traditionally manual and labor-intensive tasks associated with running a successful business.
Retailers can use AI-powered automation to cut costs while increasing efficiency, accuracy, and customer experience.
Sources:
Check out my other Statistics round up:
