North America Artificial Intelligence (AI) in Retail Market Size to Surpass US $10 Billion By 2027
According to a recent study from market research firm Graphical Research, the North America Artificial Intelligence in retail market is set to grow from its current market value of more than $1 billion to over $10 billion by 2027.
North America AI in retail industry trends is anchored by a digital revolution that has taken over the retail market with a boom. It has boosted speed, efficiency, and accuracy across all branches of retail, owing in great part to advanced data and predictive analytics technologies that assist organizations in making data-driven business choices.
AI in retail has provided businesses with access to high-level data and information, which can be used to enhance retail operations and create new business prospects. In fact, it is projected that North America AI in retail market size will be $10 billion by 2027.
Amazon Web Services, Amazon.com Inc, BloomReach Inc., IBM Corporation, Google LLC, Intel Corporation, Microsoft Corporation, Lexalytics Inc., Nvidia Corporation, RetailNext Inc., Oracle Corporation, Salesforce.com, Inc. and SAP SE. are among the leading companies using AI in retail supply chain across North America.
Advanced AI technologies are enabling businesses to aggregate and evaluate individual consumer data in order to conduct tailored promotions. This is why retail businesses in the region are modernizing their e-commerce systems with cutting-edge technology. Below mentioned are the recent examples of companies who have embraced AI into their retail business:
- J.C. Penney used AI to overhaul its e-commerce platform in September 2021. The firm is utilizing artificial intelligence (AI) technologies to change its e-commerce platform and improve the online customer experience.
- Jesta I.S. Inc. extended its cutting-edge vision AI-based CRM platform, which provides omnichannel merchants with deep visual insight into consumer engagement, in June 2020. The visual analytics system delivers agile and actionable customer insights across all channels.
- NielsenIQ announced a new agreement with Loop Insights Inc. in April 2021 to change the retail sector of North America through automated marketing and increased consumer interaction using real-time business analytics.
Machine learning technology assists businesses in improving the consumer experience and optimizing their supply chain strategy. By using ML’s predictive analytics approach, the retailer is provided with insights to define which marketing campaigns and social media channels are effective in relation to the company's products and services.
In order to unveil a greater ability in captivating new customers, as well as retaining them, retailers are creating a mix of machine learning with marketing efforts. It is expected that North America AI industry share from machine learning technology will grow with a 40% CAGR through 2027.
Considering the ease of shopping and hassle-free operation, e-commerce platforms have taken the centerstage during COVID-19 social distancing times. Because of this increased customer traffic on e-commerce shopping platforms, the automated merchandising application accounted for 30% of the regional market share in 2020.
Online merchants typically utilize automated merchandising software to forecast consumer’s purchase behaviors and provide them with additional shopping options. Through repeated encounters, advanced CRM and marketing systems learn a consumer’s habits and preferences to create a thorough shopper profile, which is then used to send proactive and targeted outbound marketing – tailored suggestions, rewards, or content.
Canada AI in retail industry size will account for more than $2 billion in revenue by 2027. The country’s top retail businesses are heavily concentrating on the adoption of AI and ML-based technologies and approaches that provide a smooth and integrated consumer experience. For example, Walmart Canada will invest USD 3.5 billion in digital transformation over the next five years in July 2020. The funds will be used to purchase IoT sensors, AI software, and blockchain- based transportation payments.
Priyanka Ravi Nair is an MBA (Finance) graduate from Pune, India. She started her journey in content writing more than 2 years ago and there has been no looking back ever since. She aims to explore several aspects in the field of content writing and is currently learning the ropes on writing articles pertaining to market research, business trends, and core industry developments.