- E-commerce companies are increasingly integrating AI in various applications to gain a competitive advantage in the market
- North America region is expected to register the highest incremental growth due to factors
The artificial intelligence (AI) market in the retail sector is expected to grow by $14.05 billion during 2019-2023 as per a report by Technavio. It said that due to COVID-19 pandemic, the impact can be expected to be significant in the first quarter but gradually lessen in subsequent quarters. It will have a limited impact on the full-year economic growth.
The report said that companies operating in the retail sector are increasingly adopting AI solutions to improve efficiency and productivity of operations through real-time problem-solving. AI also helps retailers to identify gaps in their online product offerings and deliver a personalised experience to their customers. Technavio said that the increased applications in e-commerce will have a positive impact on the market and contribute to its growth significantly over the forecast period.
Planning and procurement, production
The report said that e-commerce companies are increasingly integrating AI in various applications to gain a competitive advantage in the market. AI-powered tools help them to analyze the catalog in real-time to serve customers with similar and relevant products. These companies are also AI with other areas like planning and procurement, production, supply chain management, in-store operations, and marketing.
North America to lead
The North America region led the artificial intelligence (AI) market in the retail sector in 2018. It was followed by APAC, Europe, MEA, and South America respectively. The report said that North America region is expected to register the highest incremental growth due to factors like early adoption of AI, rising investments in R&D and start-ups, and increasing investments in technologies.