How Has the Generative Artificial Intelligence AI In Retail Stores Market Size Evolved in Recent Years?
The generative artificial intelligence ai in retail stores market has seen considerable growth due to a variety of factors.
• The market size for generative artificial intelligence (AI) within retail stores has experienced a significant expansion in recent years. The value of this sector is predicted to increase from $1.18 billion in 2024 to $1.35 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 14.5%.
Factors that have fuelled growth during the historical period include the rising accessibility of extensive datasets, growing interest in tailor-made customer experiences, advancements in computational capabilities, increased use of e-commerce platforms, and the prompt adoption of AI by major retail players.
What Is The Forecast For The Generative Artificial Intelligence AI In Retail Stores Market Size?
The generative artificial intelligence ai in retail stores market is expected to maintain its strong growth trajectory in upcoming years.
• In the near future, the market size for generative artificial intelligence (AI) in retail stores is forecasted to witness considerable expansion. The expected increase is up to $2.3 billion by 2029 at a compound annual growth rate (CAGR) of 14.2%.
The anticipated growth in the forecast period is attributed to the broadening scope of AI-powered voice and visual search functions, improvements in fairness and ethical considerations in AI, amplified investment in AI research and development, the emergence of augmented reality (AR) and virtual reality (VR) applications, and escalating consumer demand for hyper-personalized experiences. Noteworthy trends in the forecast period encompass the adoption of hyper-personalized shopping experiences, amalgamation of AI with AR and VR, advances in real-time customer sentiment analysis, the surge of autonomous retail technologies, and the proliferation of AI-facilitated predictive analytics for sales forecasting.
What Are The Essential Drivers Behind The Growth Of The Generative Artificial Intelligence AI In Retail Stores Market?
The growth of the generative artificial intelligence (AI) in retail stores is predicted to be driven by the expanding e-commerce sector. E-commerce, the online buying and selling of goods and services through websites, mobile applications, and other online platforms, has been on the rise due to increased internet penetration, growing preference for online shopping, and the convenience afforded by 24/7 accessibility. Generative AI utilizes market trends and customer data analysis to personalize product recommendations and automate content creation, while also enhancing pricing and inventory optimization. Customer service and efficiency are improved with the help of AI-powered chatbots and virtual assistants, which provide real-time support and answer queries. For example, the US Census Bureau of the Department of Commerce reported a 2.1% increase in retail e-commerce sales in the first quarter of 2024 as compared to the fourth quarter of 2023. As such, the growth of generative artificial intelligence (AI) in the retail stores market is primarily fueled by the increasing e-commerce sector.
How Is The Global Generative Artificial Intelligence AI In Retail Stores Market Divided Into Key Segments?
The generative artificial intelligence (AI) in retail stores market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment: Cloud, On-Premise
3) By Application: Demand Forecasting And Inventory Management, Personalized Customer Experiences, Dynamic Pricing Strategies, Visual Merchandising Optimization, Chatbots For Customer Support, Fraud Detection And Security
Subsegments:
1) By Software: Inventory Management Solutions, Customer Relationship Management (CRM) Tools, Personalized marketing Platforms, Virtual Fitting Room Applications, Pricing Optimization Software, Predictive Analytics For Sales Forecasting, Automated Checkout Solutions
2) By Services: Implementation And Integration Services, Consulting Services For AI Strategy, Training And Support Services, Data Analytics And Insights Services, Managed Services For AI Operations, Custom Software Development Services.
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What Trends Are Reshaping The Future Of The Generative Artificial Intelligence AI In Retail Stores Market?
Numerous prominent firms in the generative artificial intelligence (AI) in retail stores market are turning to AI-fueled virtual agents to enrich customer service, improve inventory control, and simplify procedures. Such AI-based virtual agents are software tools that mimic human interactions utilizing artificial intelligence. They manage client queries, suggest products, offer instant support, and automate activities enhancing customization and efficiency in shopping experiences. For example, Talkdesk Inc., a US firm that specializes in AI-based customer service solutions, introduced Talkdesk Autopilot in March 2024. This AI-enhanced platform independently handles routine customer queries like order status, cancellations, and delivery timeframes without human input. It comes with preset workflows, allowing retailers to swiftly solve standard client problems without requiring extensive education or custom model creation. Autopilot grants effortless access to order specifics, delivery timeframes, and customer accounts, enabling efficient automation of multiple tasks such as modifying shipping addresses and rearranging deliveries. It functions across both digital and voice channels and gives round-the-clock customer service, drastically minimizing the necessity for live agent intervention and improving the overall customer service in retail.
Who Are the Key Players In The Generative Artificial Intelligence AI In Retail Stores Market?
Major companies operating in the generative artificial intelligence (AI) in retail stores market are:
• Google LLC
• Microsoft Corporation
• Amazon Web Services Inc.
• Intel Corporation
• International Business Machines Corporation
• Oracle Corporation
• NVIDIA Corporation
• Salesforce Inc.
• TATA Consultancy Services Limited
• Adobe Inc.
• Wayfair Inc.
• Zebra Technologies Corporation
• SAS Institute Inc.
• Blue Yonder Inc.
• Quantiphi Inc.
• Talkdesk Inc.
• Everseen
• Algolia Inc.
• Persado Inc.
• RetailNext Inc.
• Klevu Oy
What Are The Regional Insights Into The Generative Artificial Intelligence AI In Retail Stores Market?
North America was he largest region in the generative artificial intelligence (AI) in retail stores market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence (AI) in retail stores market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
