Latest News- Generative AI In Retail Market: E-commerce platforms is expected to lead the Platform segment during 2025-2029

The Generative AI In Retail Market is being driven by Imperative for hyper-personalization and enhanced customer experience

The Generative AI In Retail Market is expected to grow at a CAGR of 40.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 3846.7 million. The retail industry is witnessing a transformative shift towards multimodal generative AI systems, which can process and generate content across various formats such as text, images, video, and 3D models. This evolution signifies a departure from text-only interfaces, moving retail interactions towards a more immersive and intuitive experience. For instance, customers can now upload an image of a desired furniture piece and request an AI assistant to generate renditions of it in their unique living space, incorporating various color schemes and complementary decor. This innovative application of multimodal AI not only enhances customer engagement but also streamlines the shopping process, bridging the gap between digital and physical shopping experiences. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Platform
  • E-commerce platforms
  • Omnichannel retailers
  • Brick-and-mortar stores
• Technology
  • NLP
  • Computer vision
  • Multimodal AI
  • LLMs
  • Reinforcement learning
• Application
  • Personalization and customer experience
  • Inventory and supply chain optimization
  • Content generation
  • Customer support
  • 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: 

• Imperative for hyper-personalization and enhanced customer experience
• Pursuit of operational efficiency and cost reduction
• Democratization of advanced AI and technological accessibility

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

• Data privacy, security, and navigating complex ethical landscape
• Ensuring accuracy and mitigating risk of model hallucinations
• High implementation costs and complex systems integration

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Market Scope in Generative AI In Retail Market Research Report

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Research Analysis Overview

In the retail industry, AI-driven solutions are revolutionizing business operations through deep learning applications, computer vision systems, and data mining techniques. Smart technologies such as smart shelf technology, customer segmentation models, and loyalty program optimization enhance sales accuracy and personalize promotions. Additionally, AI aids in product assortment planning, store layout optimization, staff scheduling, risk management, e-commerce personalization, and mobile app engagement. AI also improves customer feedback analysis, pricing strategy optimization, inventory optimization, supply chain visibility, store operations efficiency, customer retention strategies, online shopping experience, checkout optimization, return rate reduction, customer lifetime value, and brand reputation management.

Market Research Overview

In the dynamic retail sector, the application of artificial intelligence (AI) is revolutionizing business operations and customer engagement. AI-powered personalization enables retailers to deliver customized product recommendations and promotions, enhancing the shopping experience. Customer journey mapping utilizes AI to analyze customer behavior and preferences, optimizing touchpoints and improving conversion rates. Conversational commerce, fueled by AI, facilitates seamless interactions between customers and businesses through chatbots and voice assistants. Predictive analytics, an AI-driven tool, forecasts trends and consumer demands, enabling proactive inventory management and targeted marketing strategies. The global application software market encompasses companies specializing in AI solutions for retail, contributing significantly to its 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/