Artificial Intelligence In Retail Market: The ROI of Investing in AI Solutions

Posted on 2025-05-09 by researchinsights in Internet & Online // 0 Comments

Artificial Intelligence in Retail Industry Overview

The global Artificial Intelligence in Retail Market reached a valuation of $11.61 billion in 2024 and is anticipated to expand significantly, with a projected compound annual growth rate (CAGR) of 23.0% from 2025 to 2030. Several factors are driving this growth, including the continuous increase in internet users and smart devices, the growing need for surveillance and monitoring in physical stores, and supportive government initiatives promoting digitization.

Artificial intelligence is reshaping how retail corporations operate, building upon the data-driven practices of recent decades. Big data & analytics, combined with AI, are now central to digital business, offering the potential to transform everything from customer interactions to core business operations. The increasing adoption and understanding of big data analytics and AI in retail are being propelled by technological advancements, the growing prevalence of applications and smart devices, the adoption of Machine Learning services, and the widespread use of the Internet of Things (IoT). For example, in February 2020, Baker Hughes, a provider of oil field services, collaborated with C3.ai to launch an AI-powered application called BH3 production optimization. This tool allows operators to monitor real-time production data, optimize operational processes, and improve future production forecasts, ultimately leading to increased gas and oil production rates.

Detailed Segmentation:

Component Insights

The solution segment dominated the market with a revenue share of more than 62% in 2024. The emerging challenges in managing several retail operations are said to boost the retail sector’s innovative and new automated technologies. AI-powered technologies aid retailers in managing warehouse management, supply chain operations, logistics, and improving consumer experience. The emergence of solutions, such as IBM Watson, Salesforce Einstein, Google Machine Learning AI Platform, and Content DNA Platform, has propelled Artificial Intelligence in retail market share.

Technology Insights

The machine learning segment led the market with the largest revenue share in 2024. Machine learning serves fast and is suitable for delivering personalized experiences to consumers. To fuel efficiency, it aids retail vendors in enhancing supply chain systems and demand forecasts. For example, Amazon Inc. Amazon SageMaker is a wholly organized service that utilizes machine learning techniques for applications, from anticipating analytics to consumer experience.

Sales Channel Insights

The omnichannel segment dominated the market with a significant revenue share in 2024. Omnichannel strategies have gained immense popularity due to the expansion of digitization across developing and developed countries. Moreover, headless commerce has set the trend to leverage retailers to provide payment gateways and products across kiosk screens, progressive web apps, smartwatches, and mobile apps. Omni channel experience will gain prominence in light of the digitized supply chain and focus on providing a seamless customer experience.

Application Insights

The virtual assistance segment is anticipated to witness the fastest CAGR growth from 2025 to 2030 on the heels of the high penetration of smartphones and other advanced tools. The retail sector has explored opportunities in virtual assistant technologies to streamline the supply chain, including invoicing, ordering inventory, and bookkeeping.

Regional Insights

North America artificial intelligence in retail market dominated the global industry with a revenue share of 33.4% in 2024. The opportunities for industry expansion as significant investments are being made in AI projects and related research and development activities. Furthermore, regional retail vendors are concentrating on extracting available data on customer preferences to improve customer service efficiency. Moreover, leading companies, such as Google Inc., Microsoft, IBM Corporation, Salesforce, and Amazon Web Services, adopt organic and inorganic strategies. For instance, in January 2021, Google Machine Learning rolled out Product Discovery Solutions for retail to foster personalized online shopping.

Gather more insights about the market drivers, restraints, and growth of the Artificial Intelligence in Retail Market

Key Companies & Market Share Insights

The market is characterized by intense competition, with a few major global players holding a significant market share. Key players emphasize new product developments to offer avenues for increased profitability through better customer relationships.

NVIDIA Corporation is a leading technology company renowned for its contributions to graphics processing units (GPUs) and artificial intelligence solutions. In the retail sector, NVIDIA leverages its AI capabilities to transform customer experience and optimize operations. The company’s AI platform empowers retailers to create intelligent stores that enhance customer engagement and streamline processes.
Microsoft Corporation is known for its software products, cloud services, and innovative solutions. In the retail sector, Microsoft is leveraging its AI technologies to enhance customer experience, streamline operations, and drive business growth. The company’s Cloud for Retail platform integrates AI-driven tools and data analytics to help retailers navigate the complexities of modern shopping behaviors and operational challenges.

Key Artificial Intelligence In Retail Companies:

The following are the leading companies in the artificial intelligence in retail market. These companies collectively hold the largest market share and dictate industry trends.

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