Artificial Intelligence in Retail Market is slated to grow at 40% CAGR from 2018 – 2024. As per a new research report, the Artificial Intelligence (AI) in Retail Market will exceed USD 8 billion by 2024.
Endorsed with a portfolio of digitally-empowered consumers, artificial intelligence in the retail market is acclaimed as one of the fastest growing verticals presently. In 2017, this business space registered a global share of USD 650 million and is forecast to record a CAGR of 40% over 2018 – 2024. With the retail space becoming affluent with more number of e-commerce platforms as well as startups with large technology appetite, the adoption of AI in the retail market is bound to increase.
Additionally, the technology is witnessing a slew of opportunities in sync with the hi-tech trends including the likes of blockchainOpens a new window , AR, and the Internet of Things establishing their footprints in the retail domain. Amidst all these tech interventions, the focal point of this consumer-driven industry is to deliver an unrivaled shopping experience to customers as well as ensuring optimal management of resources and stocks.
Take for example Baidu, China’s renowned artificial intelligence market player. The company grabbed headlines with its attempt to aid convenience stores in managing their food stock more resourcefully with the help of AI. For the record, the search engine giant has been supporting Ping++, an AI service provider since September 2017 to work with Today. Under these terms, the company utilizes PaddlePaddle, a deep learning platform by Baidu along with its CTR model. Reportedly, the implementation of these technologies had a positive impact on the sales, post which, Baidu introduced this model to dozens of stores for testing.
In fact, the Chinese market has the three most influential names of the retail and tech space – Alibaba, Baidu, and Tencent (collectively touted as BAT), and is betting big in the global AI in retail industry space. The three giants which are claimed to have a cut-throat competition with the U.S. (in terms of resources and capital) are positioning themselves to become the ‘future AI platforms’. The trio is also expanding in other Asian countries and investing heavily in the U.S. based AI startups to leverage the power of AI. Backed by such powerful initiatives and presence of these conglomerates, the market in APAC AI is forecast to be the fastest-growing one, with an anticipated CAGR of 45% over 2018 – 2024.
To further elaborate on the geographical trends, North America has procured more than 50% of the global share in 2017 and has been leading the regional landscape of AI in the retail market. The U.S. has a significant credit in the regional trends with over 65% of investments (including M&As, private equity, and venture capital) in artificial intelligence technology. Additionally, the region is a huge hub for startups in tandem with the presence of tech titans, such as Google, IBM, and Microsoft.
Analyzing these trends and the penetration of AI in the retail industry, it is undeniable that the traditional retail model is bound to witness a disruption of sorts. The technology penetration will reshape the entire inventory management and operation cycle of the retail stores, thus providing a renewed shopping experience to the customers. Not only will the efficiency and sales of the retail space see an upsurge, but through the proliferation of AI in the retail market, the worldwide economy will progress massively, opening doors for several hi-tech startups and a plethora of new job opportunities.