HYDERABAD, India, Oct. 29, 2025 /PRNewswire/ -- AI in Retail Market is projected to grow from USD 14.24 billion in 2025 to USD 96.13 billion by 2030, registering an exceptional CAGR of 46.54% during the forecast period (2025–2030). This exponential growth highlights the accelerating adoption of AI technologies across retail operations, from customer engagement and personalized marketing to supply chain and inventory optimization. As retailers aim to deliver seamless omnichannel experiences, advanced AI tools such as computer vision, natural language processing, and machine learning are revolutionizing how brands interact with consumers, manage logistics, and predict demand.
The AI in retail industry is also witnessing a strong shift toward intelligent automation, with retailers increasingly leveraging AI-powered chatbots, recommendation systems, and demand forecasting models to boost customer loyalty and operational efficiency. Furthermore, rising investments in data analytics, cloud infrastructure, and edge computing are propelling innovation across retail segments, enabling smarter decision-making and enhancing overall business agility in an increasingly competitive landscape.
Technology Innovations Reshaping Retail with AI
Advances in Frictionless Vision-Based Checkout
Barcode-free checkout technology has become remarkably accurate, enabling retailers to expand from test phases to widespread use. By combining vision recognition with payment systems, these solutions help eliminate delays caused by traditional cashier lines. Some systems process images locally to meet privacy regulations while maintaining fast response times. Although initial costs are significant, the return on investment is driven by faster customer flow and deeper insights into shopping behaviors.
Increasing Affordability and Access to Cloud AI Solutions
The cost of running AI processes is decreasing due to advancements in chip technology and significant investments by leading cloud providers. Companies like Amazon and Microsoft offer ready-to-use AI tools that help retailers deploy solutions faster and more efficiently. Collaborations between retailers and tech firms enable businesses to overcome talent shortages by adopting turnkey AI systems. This shift is putting pressure on organizations still relying on outdated data centers.
Segmentation of the AI in Retail Industry
By Channel
- Omnichannel
- Brick-and-Mortar
- Pure-play Online Retailers
By Component
- Software
- Services
By Deployment
- Cloud
- On-premise
By Application
- Supply Chain and Logistics
- Product Optimization and Merchandising
- In-Store Navigation and Experience
- Payment, Pricing, and Checkout Analytics
- Inventory and Demand Forecasting
- Customer Relationship Management
- Fraud and Loss Prevention
By Technology
- Machine Learning and Predictive Analytics
- Natural Language Processing (NLP)
- Generative AI and Large Language Models (LLMs)
- Computer Vision (Image and Video)
- Chatbots and Virtual Assistants
- Swarm and Reinforcement Intelligence
By Geography
- North America: United States, Canada, and Mexico
- South America: Brazil, Argentina, and Rest of South America
- Europe: United Kingdom, Germany, France, Italy, Spain, Nordics, and Rest of Europe
- Middle East and Africa:
- Middle East: Saudi Arabia, United Arab Emirates, Turkey, and Rest of Middle East
- Africa: South Africa, Egypt, Nigeria, and Rest of Africa
- Asia-Pacific: China, India, Japan, South Korea, ASEAN, Australia, New Zealand, and Rest of Asia-Pacific
Geographical Trends in the Artificial Intelligence in Retail Market
- North America: Leading the market with major investments in automation, data analytics, and AI-based customer engagement platforms, particularly in the United States.
- Europe: Witnessing strong adoption due to retail digitalization initiatives and rising consumer preference for online experiences.
- Asia-Pacific: Expected to record the fastest growth, driven by expanding e-commerce ecosystems in China, India, and Japan.
Artificial Intelligence in Retail Companies
- Daisy Intelligence Corporation
- Google LLC
- IBM Corporation
- Infosys Limited
- Intel Corporation
- Accenture plc
- Amazon Web Services, Inc.
- BloomReach, Inc.
- Cognizant Technology Solutions Corporation
- Conversica, Inc.
- SAS Institute Inc.
- SymphonyAI LLC
- Tencent Holdings Ltd.
- ViSenze Pte. Ltd.
- International Business Machines Corporation
- Microsoft Corporation
- NVIDIA Corporation
- Oracle Corporation
- Salesforce, Inc.
- SAP SE
For a full breakdown of AI in Retail industry's size, segmentation data, and competitive intelligence, access all details of the Mordor Intelligence report at: https://www.mordorintelligence.com/industry-reports/artificial-intelligence-in-retail-market?utm_source=prnewswire
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