Latest News- Applied AI In Retail And E-Commerce Market: Solutions is expected to lead the Component segment during 2025-2029

The Applied AI In Retail And E-Commerce Market is being driven by Surging demand for hyper-personalization and enhanced customer experience

The Applied AI In Retail And E-Commerce Market is expected to grow at a CAGR of 28.6% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 77564.5 million. The retail industry is undergoing a significant transformation through the adoption of generative AI technology. This advanced form of artificial intelligence goes beyond the predictive capabilities of traditional machine learning, enabling the creation of novel content, fostering conversational commerce, and delivering unparalleled hyper-personalization. Retailers are harnessing this technology to revolutionize customer engagement, with conversational AI being a prominent application. Sophisticated virtual assistants and chatbots are being deployed to enhance the online shopping experience, answer complex product queries, and provide tailored recommendations, thereby streamlining internal content workflows and enhancing overall customer satisfaction. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • Solutions
  • Services
• Deployment
  • Cloud
  • On premises
• End-user
  • Fashion and apparel
  • Electronics and appliances
  • Grocery and FMCG
  • Beauty and personal care
  • Others
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
  • Europe
    • Germany
    • UK
    • France
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Surging demand for hyper-personalization and enhanced customer experience
• Imperative for supply chain optimization and operational efficiency
• Proliferation of big data and advancements in AI technology

However, the market also witnesses some limitations, which are as follows:

• Data privacy security and ethical concerns
• High implementation costs and system integration complexity
• Scarcity of skilled talent and need for organizational change

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Market Scope in Applied AI In Retail And E-Commerce Market Research Report

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Research Analysis Overview

In the retail and e-commerce sector, machine learning and deep learning technologies are revolutionizing operations. Retail analytics dashboards and e-commerce data mining leverage customer data platforms for personalized experiences. AI ethics and data privacy regulations are crucial, with bias mitigation and explainable AI ensuring responsible implementation. AI model deployment in the cloud or at the edge enhances retail efficiency and e-commerce website optimization. Data visualization tools and business intelligence dashboards provide insights for marketing campaign, promotional offer, and store layout optimization. Pricing strategies, inventory management, customer churn prediction, and online shopper behavior analysis are also optimized using AI. Retail sales prediction and in-store experience optimization complete the transformation.

Market Research Overview

In the dynamic retail and e-commerce landscape, AI-driven technologies are revolutionizing the customer experience. Applied AI, including ai-powered recommendation engines and computer vision retail, is transforming e-commerce personalization. These advanced technologies enable predicting customer behavior, enhancing product discovery, and optimizing inventory management. Technavio's market analysis covers the global application software market, focusing on companies providing AI-driven retail and e-commerce solutions. This market segment encompasses enterprise and technical software, as well as cloud-based applications. Our calculations consider the combined revenue generated by these companies, contributing significantly to the overall IT software market growth.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/