PUBLISHER: The Business Research Company | PRODUCT CODE: 1619614
PUBLISHER: The Business Research Company | PRODUCT CODE: 1619614
Generative artificial intelligence (AI) in retail involves the use of advanced AI models that can generate new content, such as tailored marketing materials, product designs, and customer interaction scripts, by analyzing patterns from existing data. This technology is employed to enhance customer experiences with personalized recommendations, streamline content creation for marketing, optimize inventory management, and develop innovative product designs and strategies.
The key technologies driving generative AI in retail include variational autoencoders, generative adversarial networks, deep reinforcement learning, recurrent neural networks, transformer networks, and more. Variational autoencoders (VAEs) are a specific type of generative model that learns latent data representations through probabilistic encoding and decoding. These technologies are implemented both via the cloud and on-premise for applications such as product design and development, visual merchandising, demand forecasting, personalized marketing, fraud detection, inventory management, supply chain and logistics, among others. They are used across various industries, including fashion and apparel, consumer electronics, home decor, beauty and cosmetics, grocery stores, and online platforms.
The generative AI in retail market research report is one of a series of new reports from The Business Research Company that provides Generative AI in retail market statistics, including the generative AI in retail industry's global market size, regional shares, competitors with a Generative AI in retail market share, detailed Generative AI in retail market segments, market trends and opportunities, and any further data you may need to thrive in the Generative AI in retail industry. This Generative AI in retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The generative AI in retail market size has grown exponentially in recent years. It will grow from $0.57 billion in 2023 to $0.79 billion in 2024 at a compound annual growth rate (CAGR) of 39.5%. The growth observed in the historic period can be attributed to several factors, the increasing availability of big data, the expansion of e-commerce, improvements in computational power, the rise of mobile commerce, and a reduction in technology costs.
The generative AI in retail market size is expected to see exponential growth in the next few years. It will grow to $3.01 billion in 2028 at a compound annual growth rate (CAGR) of 39.7%. The projected growth during the forecast period can be attributed to several factors, enhanced customer personalization, improved inventory management, dynamic pricing strategies, better fraud detection, and streamlined customer support. Key trends expected in this period include AI-driven customer service, automated supply chain management, advanced AI algorithms for real-time fraud detection and transaction monitoring, integration with live streaming platforms, and advancements in visual search and augmented reality.
The growth of e-commerce shopping is anticipated to drive the expansion of the Generative AI in the retail market. The convenience, variety, and accessibility of online platforms compared to traditional retail are fueling the increase in e-commerce. Generative AI enhances the e-commerce experience by offering personalized product recommendations and improving customer interactions through dynamic, context-aware content. For example, a report published by the Census Bureau of the Department of Commerce, a U.S. governmental organization, indicated that e-commerce sales reached approximately $1,118.7 billion in 2023. In the first quarter of 2024, total retail sales were estimated at $1,820.0 billion, with e-commerce sales during this period showing an 8.5% increase (+-1.1%) from the same quarter in 2023, while total retail sales grew by 2.8% (+-0.5%). This rise in e-commerce shopping is consequently driving the growth of Generative AI in the retail market.
Leading companies in the Generative AI in retail space are focusing on developing advanced AI-powered tools to enhance customer personalization, optimize inventory management, and improve sales forecasting. These Generative AI-powered tools utilize artificial intelligence algorithms to automate and optimize tasks such as personalized product recommendations, inventory management, and marketing strategies by analyzing data and generating insights, thereby increasing efficiency and decision-making in the retail sector. For instance, in January 2024, Google LLC, a U.S.-based technology company, introduced new Generative AI tools for retailers aimed at enhancing online shopping experiences and streamlining retail operations. These tools include a conversational commerce solution with AI-powered virtual agents for personalized recommendations and natural language interactions, improved search capabilities with advanced LLM for better product search, catalog, and content enrichment to optimize product listings, and Google Distributed Cloud Edge to scale AI applications across multiple locations.
In January 2024, International Business Machines Corporation (IBM), a U.S.-based technology company, partnered with SAP SE to assist clients in the consumer-packaged goods and retail sectors in improving their supply chain, finance operations, sales, and services through Generative AI. This collaboration aims to use AI to tailor product assortments at the store level, considering market dynamics, sales patterns, and anticipated demand. SAP SE, a Germany-based software company, provides Generative AI capabilities specifically for the retail industry.
Major companies operating in the Generative AI in retail market are Google LLC, Microsoft Corporation, Hitachi Ltd., Tencent Holdings Limited, Amazon Web Services (AWS), Intel Corporation, Accenture plc, International Business Machines (IBM), Oracle Corporation, Fujitsu Limited, Nvidia Corporation, NEC Corporation, Capgemini SE, Baidu Inc., Infosys Limited, Adobe Inc., Wipro Limited, SAS Institute Inc., Tableau Software LLC, C3.AI inc., DataRobot Inc., ClarifAI inc., H2O.AI inc.
North America was the largest region in the Generative AI in retail market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the Generative AI in retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the Generative AI in retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The Generative AI in retail market consists of revenues earned by entities by providing services such as customer service chatbots and virtual assistants, sentiment analysis, and customer feedback processing. The market value includes the value of related goods sold by the service provider or included within the service offering. The Generative AI in retail market also includes sales of edge computing devices, Internet of Things (IoT) sensors, networking equipment, and high-performance servers. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Generative AI In Retail Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on generative AI in retail market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for generative AI in retail ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The generative AI in retail market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.