Generative AI Market Share size and share are expected to exceed USD 283.37 billion by 2034, with a compound annual growth rate (CAGR) of 34.6% during the forecast period.

Report Scope:

According to Cognitive Market Research, the global Artificial Intelligence in Retail market size is USD 4951.2 million in 2023and will expand at a compound annual growth rate (CAGR) of 39.50% from 2023 to 2030.

Enhanced customer personalization to provide viable market output
Demand for online remains higher in Artificial Intelligence in the Retail market.
The machine learning and deep learning category held the highest Artificial Intelligence in Retail market revenue share in 2023.
North American Artificial Intelligence In Retail will continue to lead, whereas the Asia-Pacific Artificial Intelligence In Retail market will experience the most substantial growth until 2030.

Enhanced Customer Personalization to Provide Viable Market Output

A primary driver of Artificial Intelligence in the Retail market is the pursuit of enhanced customer personalization. A.I. algorithms analyze vast datasets of customer behaviors, preferences, and purchase history to deliver highly personalized shopping experiences. Retailers leverage this insight to offer tailored product recommendations, targeted marketing campaigns, and personalized promotions. The drive for superior customer personalization not only enhances customer satisfaction but also increases engagement and boosts sales. This focus on individualized interactions through A.I. applications is a key driver shaping the dynamic landscape of A.I. in the retail market.

January 2023 - Microsoft and digital start-up AiFi worked together to offer Smart Store Analytics. It is a cloud-based tracking solution that helps merchants with operational and shopper insights for intelligent, cashierless stores.

Source-techcrunch.com/2023/01/10/aifi-microsoft-smart-store-analytics/

Improved Operational Efficiency to Propel Market Growth

Another pivotal driver is the quest for improved operational efficiency within the retail sector. A.I. technologies streamline various aspects of retail operations, from inventory management and demand forecasting to supply chain optimization and cashier-less checkout systems. By automating routine tasks and leveraging predictive analytics, retailers can enhance efficiency, reduce costs, and minimize errors. The pursuit of improved operational efficiency is a key motivator for retailers to invest in AI solutions, enabling them to stay competitive, adapt to dynamic market conditions, and meet the evolving demands of modern consumers in the highly competitive artificial intelligence (AI) retail market.

January 2023 - The EY Retail Intelligence solution, which is based on Microsoft Cloud, was introduced by the Fintech business EY to give customers a safe and efficient shopping experience. In order to deliver insightful information, this solution makes use of Microsoft Cloud for Retail and its technologies, which include image recognition, analytics, and artificial intelligence (A.I.).

Source-www.ey.com/en_gl/news/2023/01/ey-announces-launch-of-retail-solution-that-builds-on-the-microsoft-cloud-to-help-achieve-seamless-consumer-shopping-experiences

Market Dynamics of the Artificial Intelligence in the Retail market

Data Security Concerns to Restrict Market Growth

A prominent restraint in Artificial Intelligence in the Retail market is the pervasive concern over data security. As retailers increasingly rely on A.I. to process vast amounts of customer data for personalized experiences, there is a growing apprehension regarding the protection of sensitive information. The potential for data breaches and cyberattacks poses a significant challenge, as retailers must navigate the delicate balance between utilizing customer data for AI-driven initiatives and safeguarding it against potential security threats. Addressing these concerns is crucial to building and maintaining consumer trust in A.I. applications within the retail sector.

Impact of COVID–19 on the Artificial Intelligence in the Retail market

The COVID-19 pandemic significantly influenced artificial intelligence in the retail market, accelerating the adoption of A.I. technologies across the industry. With lockdowns, social distancing measures, and a surge in online shopping, retailers turned to A.I. to navigate the challenges posed by the pandemic. AI-powered solutions played a crucial role in optimizing supply chain management, predicting shifts in consumer behavior, and enhancing e-commerce experiences. Retailers lever...

Global Enterprise AI Market Size and Forecast

Global Enterprise AI Market size was valued at USD 10.52 Billion in 2024 and is projected to reach USD 158.81 Billion by 2031, growing at a CAGR of 47.16 % from 2024 to 2031.

Enterprise AI Market Drivers

Increased Data Generation: The exponential growth of data from various sources, including IoT devices, social media, and customer interactions, fuels the demand for AI-powered solutions to extract valuable insights.

Automation of Tasks: AI-powered automation tools can streamline repetitive tasks, reduce human error, and increase operational efficiency.

Enhanced Decision Making: AI algorithms can analyze vast datasets to identify patterns and trends, enabling data-driven decision-making.

Enterprise AI Market Restraints

Data Quality and Privacy Concerns: The quality and privacy of data are critical for AI models. Ensuring data accuracy, security, and compliance with regulations is a significant challenge.

Lack of Skilled Talent: The shortage of AI and data science experts can hinder the adoption and implementation of AI solutions.

Multimodal AI Market size was valued at USD 1.35 billion in 2024 and is projected to reach USD 5.6 billion by 2030. Along with a CAGR of around 32.91%.

The Artificial Intelligence Market size will exceed a valuation of USD 3,582.75 billion by 2034, to grow at a CAGR of 31.3% during the forecast period.

Global Artificial Intelligence (AI) in Consumer market size was USD 150 billion in 2023 and is grow to USD 1,350 billion by 2032 with a CAGR of 27.65%.

Global AI Training Dataset Market size & share value expected to touch USD 12,993.78 million by 2032, to grow at a CAGR of 21.5% during the forecast period.

Causal AI Market size was valued at USD 11.77 Million in 2024 and is projected to reach USD 256.73 Million by 2031, growing at a CAGR of 47.1% during the forecast period 2024-2031.

Causal AI also known as causal artificial intelligence is a significant innovation in the fields of artificial intelligence and machine learning that focuses on identifying and harnessing cause-and-effect linkages in data. Traditional AI models generally use correlation-based methods to detect patterns and generate predictions. While these methods can be quite useful in specific applications, they frequently fall short in situations where understanding the underlying causal mechanisms is critical. Causal AI overcomes this issue by incorporating principles from causal inference, a branch of statistics and philosophy that investigates how to infer causal correlations from data.

Causal AI is a huge leap in the field of artificial intelligence allowing us to go beyond correlation to discover the true drivers of observed occurrences. Its applications are broad and diverse including healthcare, finance, marketing, policymaking, operations, education, the environment, and social sciences. Causal AI improves decision-making and allows for the development of focused solutions to meet difficult situations by offering a richer grasp of causality.

Causal AI (Artificial Intelligence) has the potential to change a wide range of domains by providing more precise and actionable insights than typical machine learning models. Causal AI differs from traditional AI in that it focuses on understanding the cause-and-effect relationships underlying data rather than correlations and patterns. This change from correlation to causation is a huge step forward with the potential to improve decision-making processes make better forecasts, and maximize outcomes in a variety of industries including healthcare, finance, marketing, and others.

The multimodal AI market size is predicted to rise from $2.36 billion in 2024 to $93.99 billion by 2035, growing at a CAGR of 39.81% from 2024 to 2035.

Enterprise AI Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Technology (ML, NLP), End-use Industry (IT & Telecom, Healthcare, Retail & E-commerce, Media & Advertisement) and Geography - Global Forecast to 2031

The embedded AI market size was valued at USD 10.43 billion in 2024 and is expected to reach USD 56.64 billion by 2037, registering around 13.9% CAGR during the forecast period i.e., between 2025-2037. Asia Pacific industry is poised to hold largest revenue share of 43% by 2037, impelled by rapid growth of e-commerce and digital transformation in the retail sector in the region.

The Embedded AI Market Report is Segmented by Offering (Hardware and Software & Services), by Data Type (Sensor Data, Image, and Video Data, Numeric Data, Categorial Data, and Others), by End-User Vertical (BFSI, IT & Telecommunication, Retail & Ecommerce, Manufacturing, Energy & Utilities, Transportation & Logistics, Healthcare & Life Sciences, and Other End-User Verticals), and by Geography (North America, Europe, Asia, Australia and New Zealand, Latin America, and Middle East & Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Generative AI Market will reach $233,611.6 Million by 2033 from $13,646.7 Million in 2023, growing at a CAGR of 32.85% in the forecasted period of 2023-2033

Discover the booming Call Center AI Market, valued at USD 2.3 Billion in 2024, projected to reach USD 7.2 Billion by 2030, with a CAGR of 21% (2025-30)

[228+ Pages Report] The global artificial intelligence (AI) market size is expected to grow from USD 137 billion in 2022 to USD 1812 billion by 2030, at a CAGR of 38% from 2023-2030

Global LegalTech Artificial Intelligence Market size valued at US$ 12.19 Billion in 2023, set to reach US$ 165.31 Billion by 2032 at a CAGR of about 33.6% from 2024 to 2032.

Market Overview

The global Agentic AI market is experiencing an extraordinary transformation as intelligent software agents that autonomously perceive, decide, and act are becoming integral components of digital enterprise transformation. Based on extensive analysis, the market size of Agentic AI market was valued at USD 5.1 billion in 2024 and is forecast to reach around USD 150 billion by 2033, driven by powerful growth factors and robust compound annual growth rates (CAGR) estimated at nearly 35% from 2025 to 2033. This explosive expansion is fueled by the rapid digitalization of enterprises, strong government and R&D funding, and the increasing need for automation to improve operational efficiency and reduce human error by up to 40% in some cases. Leading technology trends include advancements in machine learning models such as LLMs, increased data generation from IoT sensors, and the integration of low-latency connectivity enabled by global 5G rollouts, which together create a fertile environment for the adoption of agentic AI solutions.

Major industry reports and triangulated data from government sources, official annual reports, and regulatory filings consistently affirm that as organizations seek to streamline workflows and enhance real-time decision-making with autonomous agents, the market will begin its mainstream consolidation over the next decade. Enterprises spanning finance, healthcare, retail, IT, and manufacturing are incorporating intelligent solutions to optimize processes, reduce costs, and unlock new revenue streams from agent-driven automation. Furthermore, the steady integration of sophisticated AI agents into cloud and on-premise systems, coupled with the increasing penetration of AI software subscriptions and hardware investments, reinforces the market’s transformative potential. This enormous growth trajectory not only underlines agentic AI’s role as a key enabler of digital transformation but also highlights its potential to reshape entire industries.

Investor confidence and aggressive R&D investments by both entrenched tech giants and specialized agents have been a primary driver of this market’s momentum, especially as major vendors consistently report significant revenue contributions from their AI platforms. The market is set to witness an unparalleled increase in operational efficiency as large enterprises along with SMEs leverage cloud-based and hybrid AI solutions to deploy scalable, intelligent virtual agents. With wide-ranging applications from customer service chatbots to autonomous robotics and decision-support systems, the Agentic AI market is positioned to undergo a multi-fold expansion that mirrors the evolution witnessed in cloud computing over the past decade. Overall, the forecasted growth and expansion of the market underscore a pivotal shift in how digital businesses will operate through fully integrated intelligent agents.

The projected market figures, coupled with the impressive CAGR, indicate enormous potential for both existing vendors and new startups as they compete to capture market share in this high-growth environment. The strategic repositioning of traditional tech companies into agile, AI-driven solution providers and the entry of independent innovators have already started to blur traditional boundaries, leading to a more integrated ecosystem where hardware, software, and services combine for maximum impact. The quantitative data not only supports the promise of explosive scaling but also reinforces the expectation that agentic AI will become a cornerstone in delivering business-driven intelligence and automation for enterprises across the globe.

The Report Covers Global Artificial Intelligence Industry Report, Overview, and the Market is Segmented by Components (Hardware and Software and Services), by End-User Industry (BFSI, Fashion and Retail, Healthcare and Life Sciences, Manufacturing, Automotive, Aerospace and Defense, Construction, and Other End Users), by Geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Rest of Asia Pacific), Latin America, and Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value in USD Billion for all the Above Segments.

The Report Covers Global AI in Food and Beverage Industry Growth and Size and is Segmented by Application (food Sorting, Consumer Engagement, Quality Control, and Safety Compliance, Production and Packaging, Maintenance, and Other Applications), End User (hotels and Restaurants, Food Processing Industry, and Other End Users), and Geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.