Artificial Intelligence in Retail: Introduction
- Implementation of artificial intelligence technology in the retail market changes the overall shape of the retail market. By using artificial intelligence, retailers are now able to create data models to derive insights and in turn build predictive or prescriptive decision engines. Retailers use artificial intelligence for forecasting the demand and to make better data-driven decisions.
- Implementation of artificial intelligence in the retail process provides retailers the ability to automate the whole process in a way that would increase efficiency, accuracy, and scaling of operations. Artificial intelligence in retail is also used to transform and structure data from an unstructured or a semi-structured format to structured data i.e. one used by the marketplace. It also makes workflow easier, reduces communication complexity, and increases contact center interaction.
- The global artificial intelligence in retail market is projected to expand at a rapid pace during the forecast period, due to advancement in technologies across the globe.
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Global Artificial Intelligence in Retail Market: Dynamics
Global Artificial Intelligence in Retail Market: Key Drivers
- Increasing demand for simplification of workflow at physical retail stores and easy analysis of data is estimated to boost the artificial intelligence in retail market during the forecast period
- Growing need for better surveillance and monitoring at physical retail stores is estimated to boost the artificial intelligence in retail market during the forecast period.
- Implementation of augmented and prescriptive intelligence, machine learning, and artificial intelligence in retail also enables analysts to forecast markets with greater accuracy, which is a major factor that is likely to propel the artificial intelligence in retail market in the next few years
- Rise in demand for better communication, the need to generate more revenue, enhance end-user experience and interaction with the physical environment to accomplish diverse activities and improve productivity across the globe is estimated to boost the artificial intelligence in retail market during the forecast period
- A rise in rate of adoption of cloud computing technologies across various sectors is projected to boost the demand for artificial intelligence in retail market
- Growing awareness among end-users and rise in the number of applications of AI in the retail industry is also expected to propel the artificial intelligence in retail market during the forecast period
- Increasing demand to maintain inventory accuracy and supply chain optimization in retail is projected to boost the demand for artificial intelligence in retail market
- However, lack of awareness leading to low rate of adoption of artificial intelligence by small and medium size retailers is anticipated to hamper the artificial intelligence in retail market during the forecast period
- Incompatibility issues with infrastructure and lack of skilled staff is also projected to hinder the artificial intelligence in retail market during the forecast period
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Impact of COVID-19 on the Global Artificial Intelligence in Retail Market
- Increasing cases of COVID-19 across the globe is resulting in economic slowdown and millions of employees are working from home for the first time during this pandemic. This is expected to change the conservative corporate culture. Hence, demand for better observation, study, and analysis of market conditions, and data is increasing during this pandemic. This is expected to continue during the forecast period. Hence, COVID-19 has a positive impact on the artificial intelligence in retail market. This is projected to indirectly propel the global artificial intelligence in retail market in the next few years.
North America to Hold Major Share of the Global Artificial Intelligence in Retail Market
- In terms of region, the global artificial intelligence in retail market can be divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America
- North America dominated the global artificial intelligence in retail market with the largest share mainly because of the presence of developed economies, such as the United States and Canada. The U.S. is a key market in the region due to the early adoption and implementation of artificial intelligence in retail. Many retailers have deployed AI-based solutions to optimize their supply chain operations and inventory in the region.
- The artificial intelligence in retail market in Asia Pacific is projected to expand at a rapid pace during the forecast period. This can be attributed to growing adoption of AI-based solutions and services among retailers in the region.
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Global Artificial Intelligence in Retail Market: Competition Landscape
Several local, regional, and global players are active in the artificial intelligence in retail market with a strong presence. Rapid technological advancements have created significant opportunities in the global artificial intelligence in retail market.
Key Players Operating in the Global Artificial Intelligence in Retail Market Include:
- Microsoft Corporation
- IBM Corporation
- Nvidia Corporation
- Amazon Web Services, Inc.
- Oracle Corporation
- SAP SE
- Intel Corporation
- Google LLC
- Sentient Technologies
- Salesforce.com, Inc.
Global Artificial Intelligence in Retail Market: Research Scope
Global Artificial Intelligence in Retail Market, by Type
Artificial Intelligence in Retail Market, by Technology
- Machine Learning and Deep Learning
- Natural Language Processing
- Others (Analytics and Process Automation)
Global Artificial Intelligence in Retail Market, by Application
- Predictive Merchandising
- Programmatic Advertising
- Market Forecasting
- In-store Visual Monitoring and Surveillance
- Location-based Marketing
Global Artificial Intelligence in Retail Market, by Region
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
- Artificial Intelligence in Stock
- Machine Learning in Trading
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.