Artificial Intelligence in the retail market – growth, trends, covid 19 impact, and forecasts (2022 – 2027)
Due to the COVID19 Outbreak, customers are considering online shopping platforms as their primary shopping channel. This has given retailers and consumer goods organizations a great opportunity to adopt sustainability with their digital presence. Therefore, retailers are using eCommerce platforms and online marketplaces to capitalize on the changing trends.
- Artificial Intelligence is driving faster business decisions in marketing, e-commerce, product management, and other business areas by decreasing the gap from insights to action. According to the United States Department of Commerce, retail sales in the United States are expected to reach USD 5.99 trillion in 2023.
- Machine learning and deep learning technologies are majorly used technologies for AI. Organizations in the retail industry use machine learning and deep learning technology to offer a more personalized experience to the end-users and provide an interactive environment for them.
- According to a study by IBM Corporation, the adoption of AI in retail and consumer products industries is expected to leap from 40% of companies currently to more than 80% in three years. Additionally, investment in artificial intelligence (AI) technology by the retail industry is growing. In addition, a study by Juniper, global retail spending on AI would reach USD 7.3 billion annually by 2022, up from a predicted USD 2 billion in 2018. Investments in AI-powered predictive and prescriptive analytics would more than double in that time frame.
- However, a reluctance to adopt technological developments are expected to slow down the market growth. Also, a lack of a skilled workforce to adopt the integration of AI in retail is hindering the market growth.
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