Retail AI Market to Be Worth $164.74 Billion by 2030

Research firm MarketsandMarkets valued the current retail artificial intelligence market at $31.12 billion globally and expects it to reach $164.74 billion by 2030, growing at a compound annual rate of 32 percent.

AI-powered chatbots and virtual assistants are reshaping customer service by providing quick and efficient responses to inquiries, enabling a 24/7 customer support system without the need for human intervention, the firm observed, nboting that these AI solutions handle a wide range of tasks, such as answering common customer questions, guiding users through purchase processes, resolving complaints, and providing personalized product recommendations.

Their ability to manage multiple customer interactions reduces operational costs and significantly improves the customer experience by delivering fast and consistent service, it said further.

As customer expectations evolve toward instant, seamless interactions across various platforms, such as websites, mobile apps, and social media, AI chatbots play a critical role in maintaining such engagement, according to MarketsandMarkets.

Moreover, advanced natural language processing capabilities enable these AI-driven assistants to understand complex queries and provide accurate responses, further enhancing their effectiveness in improving customer satisfaction and loyalty, making them a key driver of AI adoption in retail, the firm concluded.

GenAl, it said further, has revolutionized retail operations by streamlining operations, improving decision-making, and personalizing customer experiences. Retailers are experimenting with Al in many areas of the retail value chain, from image-generation to intelligent shopping assistants.

Al is set to reinvent online retail by enhancing customer experience through custom-built, smart inventory and customer support services.

The report identifies Microsoft, IBM, Google, Amazon, Oracle, Salesforce, NVIDIA, SAP, ServiceNow, Accenture, Infosys, Alibaba, Intel, AMD, Fujitsu, Capgemini, TCS, Talkdesk, Symphony AI, Bloomreach C3.AI Visenze , Pathr.ai, Vue.AI Nextail, Daisy Intelligence, Cresta, Mason,Syte, Trax, Feedzai, and Shopic as the leading providers of retail AI technologies.