Generative Artificial Intelligence (AI) in Retail Stores Market Report 2024

This Generative Artificial Intelligence (AI) In Retail Stores market 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 generative artificial intelligence (AI) in retail stores market size has grown rapidly in recent years. It will grow from $1.04 billion in 2023 to $1.18 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth during the historic period can be attributed to several factors, the increasing availability of large datasets, a growing interest in personalized customer experiences, advancements in computational power, the rising adoption of e-commerce platforms, and early adoption of AI technologies by leading retailers.

The generative artificial intelligence (AI) in retail stores market size is expected to see rapid growth in the next few years. It will grow to $2.01 billion in 2028 at a compound annual growth rate (CAGR) of 14.3%. The anticipated growth in the forecast period can be attributed to several factors, the expansion of AI-driven voice and visual search capabilities, advancements in AI ethics and fairness, increasing investment in AI research and development, the rise of augmented reality (AR) and virtual reality (VR) applications, and growing consumer expectations for hyper-personalized experiences. Major trends expected to influence this period include the adoption of hyper-personalized shopping experiences, integration of AI with AR and VR technologies, advancements in real-time customer sentiment analysis, the rise of autonomous retail technologies, and growth in AI-powered predictive analytics for sales forecasting.

The growing e-commerce sector is expected to drive the advancement of generative artificial intelligence (AI) in the retail stores market in the future. E-commerce involves buying and selling goods and services over the Internet through websites, mobile applications, and other online platforms. The increasing demand for e-commerce is fueled by factors such as widespread internet access, a preference for online shopping, and the convenience of 24/7 availability. Generative AI helps analyze customer data and market trends to offer personalized product recommendations, automate content creation, and optimize pricing and inventory. Additionally, AI-powered chatbots and virtual assistants enhance customer service by providing real-time support and answering queries. For example, in May 2024, the Census Bureau of the Department of Commerce, a US-based government agency, reported a 2.1 percent increase in retail e-commerce sales for the first quarter of 2024 compared to the fourth quarter of 2023. As a result, the growth of the e-commerce sector is boosting the development of generative AI in the retail stores market.

Leading companies in the generative AI for retail stores market are focusing on creating AI-powered virtual agents to improve customer service, optimize inventory management, and streamline operations. These AI-powered virtual agents are software applications designed to simulate human interaction using artificial intelligence. They manage customer inquiries, provide product recommendations, offer real-time support, and automate various tasks, enhancing personalization and efficiency in shopping. For instance, in March 2024, Talkdesk Inc., a US-based provider of AI-driven customer service solutions, introduced Talkdesk Autopilot. This platform autonomously handles routine customer inquiries, such as checking order status, processing cancellations, and managing delivery schedules, without human intervention. It features preconfigured workflows that allow retailers to quickly address common customer issues, minimizing the need for extensive training or custom model development. Autopilot provides seamless access to order details, delivery schedules, and customer accounts, facilitating the automation of tasks like changing shipping addresses and rescheduling deliveries. It operates across both digital and voice channels, offering 24/7 customer support and significantly reducing the need for live agents while improving overall customer service in retail.

In April 2022, Gupshup, a US-based company specializing in conversational engagement, acquired AskSid for an undisclosed sum. This acquisition aims to enhance Gupshup's capabilities in AI-driven customer support and broaden its offerings in automated customer service, particularly within the retail sector. AskSid, an India-based company, focuses on generative AI solutions such as conversational AI to enhance chat and voice-enabled commerce solutions for retail.

Major companies operating in the generative artificial intelligence (AI) in retail stores market are Google LLC, Microsoft Corporation, Amazon Web Services Inc., Intel Corporation, International Business Machines Corporation, Oracle Corporation, NVIDIA Corporation, Salesforce Inc., TATA Consultancy Services Limited, Adobe Inc., Wayfair Inc., Zebra Technologies Corporation, SAS Institute Inc., Blue Yonder Inc., Quantiphi Inc., Talkdesk Inc., Everseen, Algolia Inc., Persado Inc., RetailNext Inc., Klevu Oy.

North America was the largest region in the generative artificial intelligence (AI) in retail stores market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence (AI) in retail stores market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the generative artificial intelligence (AI) in retail stores market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in retail stores leverages advanced AI technologies to enhance and innovate various aspects of the retail experience. By utilizing data and machine learning algorithms, generative AI provides valuable insights and solutions that improve customer interactions, streamline operations, and boost sales. This approach aims to elevate the shopping experience and drive both performance and revenue growth.

The primary components of generative AI in retail stores are software and services. The software includes applications and platforms that employ generative AI to automate and optimize different retail processes, creating more engaging and relevant shopping experiences. These solutions can be deployed via cloud-based or on-premise systems and are used for applications such as demand forecasting, inventory management, personalized customer experiences, dynamic pricing strategies, visual merchandising optimization, chatbots for customer support, and fraud detection and security.

The generative artificial intelligence (AI) in retail stores market research report is one of a series of new reports that provides generative artificial intelligence (AI) in retail stores market statistics, including the generative artificial intelligence (AI) in retail stores industry global market size, regional shares, competitors with the generative artificial intelligence (AI) in retail stores market share, detailed generative artificial intelligence (AI) in retail stores market segments, market trends, and opportunities, and any further data you may need to thrive in the generative artificial intelligence (AI) in retail stores industry. These generative artificial intelligence (AI) in retail stores market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generative artificial intelligence (AI) in retail stores market consists of revenues earned by entities by providing services such as automated customer support, content generation, store layout optimization, and predictive analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

This product will be delivered within 3-5 business days.