Artificial Intelligence (AI) in Retail Market Size, By Component (Solution [Chatbot, Customer Behavior Tracking, Customer Relationship Management (CRM), Inventory Management, Price Optimization, Recommendation Engine, Supply Chain Management, Visual Searc

Artificial Intelligence (AI) in Retail Market Size, By Component (Solution [Chatbot, Customer Behavior Tracking, Customer Relationship Management (CRM), Inventory Management, Price Optimization, Recommendation Engine, Supply Chain Management, Visual Search], Service [Professional Service, Managed Service]), By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Application (Automated Merchandising, Programmatic Advertising, Market Forecasting, In-Store AI & Location Optimization, Data Science), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 - 2032

AI in Retail Market is expected to grow significantly between 2023 and 2032, owing to the increasing preference for chatbots in online retail websites. This enables retailers to offer customer care and answer consumer queries 24/7.

Besides, the leading companies in the market are actively pursuing partnership and acquisition opportunities in a bid to expand their operations. The collaborations among such firms are expected to assist them in integrating AI technology with this platform and providing the best customer experience possible. For instance, in September 2022, Lowe's announced partnership with Magic Leap and NVIDIA. Through this partnership, the involved companies can improve their combined operations and offer customized services to better meet clients’ needs.

Overall, the AI in retail market has been segmented in terms of component, technology, application, and region.

Considering the components, AI services in retail sector are poised to gain major traction in the coming years. Services including managed services and professional services offer vivid benefits such as reduced costs, enhanced customer satisfaction, improved security, increased sales, and optimum supply chain management.

Based on technology, the natural language processing segment attained over $2 billion in revenue in 2022. The segmental growth can be attributed to the growing preference for NLP technology in the retail industry. The technology has penetrated the retail and e-commerce industries, making it more tangible and accessible than ever before.

Additionally, NPL-enabled chatbots can respond to customers' questions and resolve issues on the e-commerce website without any need for human intervention, enabling e-commerce companies to enhance conversion rates, raise customer satisfaction levels, and lower client acquisition expenses, which will result in their increased adaptation by e-commerce businesses.

With respect to application, the data science segment is anticipated to amass more than 20% market share by 2032 end. The market is being driven by the expansion of digital data and the use of smart devices. Data science and AI in the telecom industry offer operators the capabilities to analyze data and apply it for a variety of purposes, including boosting dependability, cutting costs, and enhancing customer experience, which will fuel the market within the next decade.

From the regional perspective, the Asia Pacific AI in the retail market is slated to grow at a sturdy rate over the next ten years. The population increase, economic and social development, changing consumer preferences, and rising spending power are some of the factors driving the retail industry expansion, in turn impelling the regional market prospects throughout 2032.