AI in Retail Market to grow at 40% CAGR from 2018-2024 Artificial Intelligence (AI) in Retail Market

AI in Retail Market to grow at 40% CAGR from
2018-2024: Global Market Insights Inc.
Artificial Intelligence (AI) in Retail Market to exceed USD 8 billion by 2024, driven by
growing investment in AI. The AI in retail market is driven by the increasing
investments in it across the globe. The growing investment in the technology is
attributed to the wide applications of the AI technology along with advanced
analytics, machine learning. AI is set to unleash the next phase of the digital
disruption and the market participants are preparing themselves for it. The
investment in the technology is growing rapidly, dominated by the tech giants such
as Google, Microsoft, IBM, AWS, and Baidu. In 2016, approximately USD 30 billion
investment in the technology has been witnessed, with more than 90% on the R&D
activities and remaining 10% on the merger & acquisition activities. Furthermore,
private equity financing, seed investment, and venture capital investment also grew
significantly amounting to a cumulative total of over USD 6 billion.
The technological advancement and the development of the advanced machine
learning & deep learning algorithms are also the major driving forces for the AI in
retail market. Machine learning is estimated to grow prominently in AI in retail market
at over 42% CAGR. The growth is driven by the increasing adoption of the
technology by the retailers to provide enhanced customer experience and offer a
personalized shopping experience to the customers.
The visual search solution segment in AI in retail market is assessed to grow at a
CAGR of over 45% during the forecast timeline due to the increasing trend of online
shopping and mobile commerce. The solution allows customers to search products
using images instead of text or speech. It leverages the image recognition
technology to analyze the image and recommend relevant products to improve the
shopping experience of the customers. The demand for the solutions is estimated to
grow significantly in the future due to the increasing popularity among the online
retailers and shoppers.
Programmatic advertising is one of the most prominent applications of AI in retail
market. As the competition among the retailers is increasing rapidly, companies are
looking for new ways to gain customers by implementing advanced advertising
strategies. The companies are focusing on “Precision Targeting” to deliver the right
messages to the right audience to maximize the sales and reduce the advertising
spend. Furthermore, the demand for the programmatic advertising is also driven by
the increasing investments by the retailers on digital marketing.
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