Artificial Intelligence in Retail Market Size, Share & Industry Analysis

Core business processes should be strategically rethought and redesigned to effectively leverage GenAI. KPMG has market-leading alliances with many of the world’s leading software and services vendors. Importantly, exits for investors in India have been strong, validating the country’s significant upside potential. Deal selection was still critical to generate returns during this period, as demonstrated by notable exits such as TPG’s 2023 sale of a controlling stake in Care Hospitals to Blackstone. Global PE investors have grown more comfortable putting larger amounts of capital to work in India, making the market more competitive.

Retailers can eliminate operational inefficiencies and provide a frictionless shopping experience by treating these channels as a single whole using AI. Product information management is one of the many pillars of a successful omnichannel sales strategy and is key to brand consistency and an engaging customer shopping experience. Chatbots and virtual assistants can also support customers 24/7 by providing automated and instant responses to customer inquiries and concerns at any time of day or night. Tidio, an all-in-one customer service platform, reports that 88% of online users had at least one conversation with a chatbot in 2022.

Key Companies & Market Share Insights

AI support is also being used to optimize price strategy and inventory management. The emerging challenges in managing several retail operations are said to boost the retail sector’s innovative and new automated technologies. The AI-powered technologies aid retailers in improving warehouse management, managing supply chain operations & logistics, and improving the consumer experience. The emergence of software, such as IBM Watson, Salesforce Einstein, Google Cloud AI Platform, and Content DNA Platform, has contributed to the segment share. In September 2022, Hanshow will join Microsoft and Intel to speed up industry innovation. The best practices in the retail and AI sectors are outlined, along with changes to the global retail market.

• Now along comes artificial intelligence (AI) and, using data, cameras or both, realizes that demand didn’t drop, there’s an operational problem that’s causing sales to decline.
• This highlights the increasing popularity and usage of chatbots for customer-facing roles.
• They also assist customers by answering questions, providing product recommendations, and guiding them to specific store locations.
• But at this time, warehouse footprints were treated as a necessary evil — decidedly “unsexy” and unworthy of topline investment.
• AI support is also being used to optimize price strategy and inventory management.
• Valyant AI develops conversational AI for customer service, specifically in the Quick Service Restaurant (or fast-food) industry.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem’s work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School. Generative AI can create new product designs based on the analysis of current market trends and customer interactions, consumer preferences, and historic sales data.

Generative AI Applications in the Retail Industry

Large global retailers use artificial intelligence and machine learning in a wide range of their operations. AI is a powerful tool for analyzing customers’ data and providing personalized recommendations at every sales and marketing touchpoint. Instead, machine learning and artificial intelligence help automate repetitive tasks, making business processes less error-prone. Thanks to the power of data, retailers can forecast demand for different products and services, avoid overstocking or under-stocking, and optimize production, staffing, and pricing strategies.

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