Artificial Intelligence (AI) is revolutionizing the retail industry by providing support for retail operations, increasing profits, and optimizing business processes. AI services in the retail sector are projected to increase from $5 billion to above $31 billion by 2028. Generative AI has the potential to add $400-660 billion annually for retailers. AI-powered chatbot support, personalized recommendations, and virtual try-ons have significantly transformed the shopping experience. According to a study from Mordor Intelligence, the market size of AI in retail is expected to grow from USD 73 billion in 2023 to USD 2945 billion in 2028.
Retailers plan to invest in AI in customer intelligence, inventory management, and chatbots for customer service, as they expect AI to have the most impact on these areas in the next two years. In 2021, businesses spent an estimated $29 billion on AI products for the retail industry, and it's expected to expand to $17 billion by Q4 of 2