PUBLISHER: Grand View Research | PRODUCT CODE: 1588628
PUBLISHER: Grand View Research | PRODUCT CODE: 1588628
The global artificial intelligence in retail market size is expected to reach USD 40.74 billion by 2030, registering a CAGR of 23.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. The rising prominence of advanced technologies, such as chatbots and voice recognition programs, has furthered the growth potential. Moreover, the emerging online retail sales, increasing focus of retailers on improving customers' shopping experience, rising reliance on digital marketing, and growing investments in AI, accompanied by supportive government regulations, are the crucial factors contributing to the progress of the industry worldwide.
AI algorithms play a pivotal role in assessing a considerable amount of data collated from consumers' online behavior. Moreover, AI-driven image and video analytics have become trendier to help filter out and classify images and less important visual content, expediting investments across developed and developing economies.
Adopting AI in retail helps provide better outcomes and engage customers in the virtual world, which is expected to increase demand for AI in retail in the coming years. For instance, in January 2021, Google LLC launched Product Discovery Solutions for Retail. This product is a suite of services created to improve retailers' e-commerce potential and aid them in delivering personalized consumer experiences.
The image and video analytics segment is poised to gain a significant share in the AI in retail market during the assessment period, partly due to the growing prominence of in-store promotional strategies and image search. To illustrate, eBay uses AI to streamline image searches, enhance buyer-seller trust, and boost shipping and delivery times. Meanwhile, Amazon prioritizes AI to expand visual search and facial recognition, among others.
Stakeholders anticipate the virtual assistant segment to contribute significantly to the global market. The trend is mainly attributed to the growing prominence of voice-powered search queries and personalized shopping experiences. Prominently, intelligent virtual assistants have reshaped the industry dynamics, helping retailers handle customer queries seamlessly.
Major players in the market are consistently investing in advanced technologies and introducing customer targeting and tailored solutions to stay ahead of the competition. For instance, in August 2020, Kenco, a company that provides logistics services based in the U.S., launched DaVinci AI to create predictive insights, boosting supply chain and prescriptive actions.