According to a recent study from market research firm Graphical Research, the North America Artificial Intelligence (AI) in retail market size is projected to reach a valuation US$ 10 billion by 2027.
North America Artificial Intelligence (AI) in retail market size is projected to grow at a notable rate as the awareness of advanced technologies, such as data analytics and AI is increasing among business owners. Moreover, governments are unveiling a variety of initiatives to encourage digitization across the retail sector, which will have a positive impact on the adoption of AI technologies in the retail sector.
E-commerce platforms are gaining popularity across several sectors as they offer a lot of ease and convenience while doing business. Many retailers are switching to these platforms to help them manage their inventory, supply chain activities, develop creative advertising ideas, enhance customer experience, and increase the use of smart bots. The COVID-19 pandemic accelerated the use of online platforms and retail AI, which enabled customers to easily place orders for food and pharmacy products.
The trends driving the market forecast are mentioned below:
Recommendation engine solutions gain traction:
Recommendation engine solutions held more than 25% share of North America Artificial Intelligence (AI) in retail market in 2020. The use of advanced technologies, such as AI, machine learning, and data analytics is rising at a strong rate in the retail sector to improve the overall shopping experience of customers.
Recommendation engines help retailers in catering to the varied needs of consumers and assist them in keeping close track of their client’s buying behavior by showing filtered suggestions. The engines use machine learning algorithms that help consumers get the product they are looking for, increasing their use among retail chain owners.
Use of retail AI in automated merchandising:
The automated merchandising application captured 30% share of North America Artificial Intelligence (AI) in retail market in 2020. The concept of e-commerce shopping platforms is picking up the pace across the region. Automated merchandising is widely used by online retailers to predict their consumer’s product preferences based on their purchase history and offer relevant products to them. Smart technology plays an important role in augmenting retail sales, thereby increasing the use of automated merchandising.
Natural Language Processing (NLP) used to understand customer behavior:
North America Artificial Intelligence (AI) in retail market size from Natural Language Processing technology is anticipated to showcase 35% CAGR over 2021-2027. Many retail chain owners are utilizing a wide range of software and tools to understand their client’s behavior, purchasing habits, and personality.
NLP software can automatically translate a customer’s native language. The technology is useful for businesses that want to expand their global network by understanding the culture of their potential customers. As there are a variety of beneficial features available, such as speech recognition, sentiment analysis, and part of speech tagging, the installation of NLP software is set to rise.
U.S. AI in retail market forecast remains positive:
The U.S. is predicted to capture a share worth over $10 billion in North America Artificial Intelligence (AI) in retail market by 2027. The government is boosting its investments in advanced technologies like AI to encourage its use in SMEs.
Several leading companies in the country are creating AI-powered digital platforms to cater to the needs of different sectors. For example, according to a report by the National Venture Capital Association, in April 2020, 285 AI-based organizations were able to secure funds worth $6.9 billion in the U.S. in Q1 of 2020, thereby bolstering the use of retail AI.
North America Artificial Intelligence (AI) in retail market outlook will be driven by the rising presence of reputed organizations, such as BloomReach Inc., Amazon Web Services, Google LLC, Intel Corporation, IBM Corporation, and Microsoft Corporation, among several others.
The firms are using Natural Language Processing (NLP), machine learning, and computer vision to develop innovative retail AI solutions and services. Retail AI software will be extensively used in programmatic advertising, automated merchandising, market forecasting, data science, and in-store AI & location optimization applications.