More than 70 percent of Generation Z consumers were interested in using artificial intelligence (AI) when shopping. In comparison, around half of the average global consumers were interested in AI involvement while shopping.

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.

Market Dynamics of the Artificial Intelligence in the Retail Market

Key Drivers for Artificial Intelligence in Retail Market

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

Key Restraints for Artificial Intelligence in 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.

Key Trends for Artificial Intelligence in Retail Market

Surge in Voice-Enabled Shopping Interfaces Reshaping Retail Experiences

Voice-enabled A.I. assistants such as Amazon Alexa and Google Assistant are revolutionizing the way consumers engage with retail platforms. Shoppers can now utilize voice commands to search, compare, and purchase products, thereby streamlining and accelerating the buying process. Retailers...

A survey conducted in 2025 among shoppers showed that almost ** percent of gen Z consumers have used AI shopping assistants or ChatGPT to help them with their online purchases. 48 percent of Millennials reported the same habit.

A survey conducted in 2023 shows how likely consumers are to adopt the use of artificial intelligence (AI) when shopping online, and in which categories would that happen the most. Around ** percent of respondents said they would use AI when purchasing flights and close to this number, around ** percent, would use the tool to look for hotels and resorts. Consumers who would use AI to buy medicine, clothes, beauty products and electronics range from ** to ** percent.

AI in E-Commerce Market Outlook

According to our latest research, the global AI in E-Commerce market size reached USD 8.9 billion in 2024 and is expected to grow at a robust CAGR of 18.6% from 2025 to 2033. By the end of the forecast period, the market is projected to attain a value of USD 44.2 billion by 2033. This substantial growth is primarily driven by the accelerating adoption of artificial intelligence technologies across online retail platforms, as businesses seek to enhance customer experiences, streamline operations, and optimize decision-making processes.

The rapid expansion of the AI in E-Commerce market is underpinned by several critical growth factors. Foremost among these is the increasing consumer demand for personalized shopping experiences. Retailers are leveraging AI-driven algorithms to analyze vast datasets, enabling them to deliver tailored product recommendations, dynamic pricing, and targeted marketing campaigns. The proliferation of digital touchpoints—ranging from mobile apps to voice assistants—has further amplified the need for intelligent automation, making AI an indispensable tool for e-commerce businesses aiming to boost conversion rates and foster customer loyalty. Additionally, the integration of AI-powered chatbots and virtual assistants is revolutionizing customer service by providing real-time, 24/7 support, thereby reducing operational costs and improving customer satisfaction.

Another significant driver propelling the growth of the AI in E-Commerce market is the ongoing digital transformation across the retail sector. As e-commerce platforms contend with rising competition and shifting consumer behaviors, AI technologies offer a competitive edge by automating inventory management, optimizing supply chains, and detecting fraudulent activities. Retailers are increasingly investing in advanced analytics, computer vision, and natural language processing to enhance operational efficiency and mitigate risks. The adoption of cloud-based AI solutions has also lowered entry barriers for small and medium-sized enterprises, enabling them to harness sophisticated tools without substantial upfront investments in infrastructure.

Moreover, the global expansion of e-commerce, particularly in emerging markets, is fueling the demand for AI-driven solutions. The surge in online transactions, coupled with the rise of omnichannel retail strategies, has created a complex ecosystem that necessitates intelligent automation and data-driven insights. AI is facilitating seamless integration across various sales channels, improving inventory visibility, and enabling predictive analytics for demand forecasting. As regulatory frameworks around data privacy and security continue to evolve, e-commerce companies are prioritizing investments in AI technologies that enhance compliance and build consumer trust.

From a regional perspective, North America currently leads the AI in E-Commerce market, accounting for the largest share in 2024. This dominance is attributed to the presence of major technology providers, high consumer adoption rates, and significant investments in research and development. However, Asia Pacific is poised to witness the fastest growth during the forecast period, driven by rapid digitalization, increasing internet penetration, and the emergence of tech-savvy consumers in countries such as China, India, and Southeast Asia. Europe is also experiencing steady growth, supported by robust e-commerce infrastructure and regulatory support for digital innovation. Latin America and the Middle East & Africa are gradually catching up, as local retailers embrace AI to address unique market challenges and capitalize on new opportunities.

Component Analysis

The AI in E-Commerce market is segmented by component into software, services, and hardware, each playing a pivotal role in the ecosystem. The software segment dominates the market, as AI-powered platforms and applications are crucial for delivering personalized recommendations, automating customer interaction

According to a survey conducted in the United States in 2024, only **** percent of consumers believe that using AI for customer service improves their online shopping experience. Most survey respondents, roughly ** percent, think that it depends on how it is used, while around ** percent believe that AI-powered customer service makes the shopping experience worse.

Smart grocery shopping suggestions by AI are likely to be used by **** percent of survey respondents from the U.S., according to their own estimations. Another **** percent of respondents said they are very likely to take such suggestions by AI.

The size of the Artificial Intelligence In Retail Market was valued at USD 8.13 Billion in 2023 and is projected to reach USD 33.98 Billion by 2032, with an expected CAGR of 22.67% during the forecast period. Recent developments include: January 2024: Microsoft unveiled new generative AI and data solutions and capabilities for retailers that cover the whole retail customer journey. These solutions and capabilities help businesses more effectively engage their audiences, unlock, and unify retail data, and enable personalized shopping experiences and store associate empowerment. Microsoft Cloud for Retail now gives retailers more options to integrate copilot experiences throughout the shopper journey, including new copilot templates on Azure OpenAI Service that enable retailers to create personalized shopping experiences and support store operations, retail data solutions in Microsoft Fabric, new copilot features in Microsoft Dynamics 365 Customer Insights, and the introduction of Retail Media Creative Studio in the Microsoft Retail Media Platform., January 2024: IBM and SAP announced their partnership to build solutions that help customers in the retail and consumer packaged goods industries use generative AI to improve their supply chain, finance operations, sales, and services. IBM and SAP are collaborating to develop new generative and traditional AI solutions that will be concentrated on addressing the complexities of the direct store delivery business process and product portfolio management. This is due to the companies' shared legacy of technological expertise and the successful integration of IBM Watsonx, an enterprise-ready AI and data platform, and AI assistants into SAP solutions., January 2023: Google unveiled four new and updated AI technologies to assist businesses in transforming their in-store shelf monitoring operations and improving their e-commerce sites by providing customers with smoother and more natural online shopping experiences. A new shelf-checking AI solution based on Google Cloud's Vertex AI Vision uses Google's library of facts about people, places, and things, allowing businesses to identify billions of products to guarantee in-store shelves are properly proportioned and stocked. Additionally, Google Cloud updated its Discovery AI solutions with a new browsing feature powered by AI and a new customization AI capability to assist retailers in modernizing their digital storefronts with more dynamic and user-friendly purchasing experiences.. Key drivers for this market are: Data security and privacy concerns Lack of skilled AI professionals High cost of AI implementation Regulatory complexities. Potential restraints include: Growing customer demand for personalized experiences Need for increased efficiency and automation Technological advancements in AI and cloud computing Government initiatives to promote AI adoption. Notable trends are: Generative AI: AI that creates original content, such as personalized recommendations and product designs. Metaverse: Virtual and augmented reality technologies that enhance customer experiences. Edge AI: AI processed on-device, enabling real-time insights and decision-making..

A 2024 survey carried out in the United States showed that nearly one in two consumers would not allow artificial intelligence (AI) to access their personal data for personalization. While 16 percent of the surveyed consumers were not too sure about it, about the same percentage of shoppers would allow AI technologies to access their information details to get a more convenient and personalized shopping experience.

Spending on AI and Analytics in Retail Market Outlook

The global spending on AI and analytics in the retail market size is projected to grow from $7.3 billion in 2023 to $27.2 billion by 2032, registering a robust CAGR of 15.8% during the forecast period. The significant growth factor driving this market is the increasing need for retailers to leverage advanced technologies for enhancing customer experience, optimizing operations, and gaining a competitive edge.

One of the primary growth factors of this market is the increasing adoption of AI-driven customer experience management solutions. Retailers are increasingly utilizing AI and analytics to provide personalized shopping experiences, which in turn boosts customer satisfaction and loyalty. Advanced analytics enable businesses to gather and analyze vast amounts of customer data, providing insights into consumer preferences and behavior, thus allowing for the creation of tailored marketing campaigns and product recommendations.

Another critical driver is the optimization of inventory management through AI and analytics. Efficient inventory management is crucial for retail operations as it minimizes costs associated with overstocking and stockouts. AI solutions can forecast demand more accurately, helping retailers maintain optimal inventory levels. This not only reduces wastage and excess costs but also ensures that the right products are available at the right time, enhancing overall operational efficiency.

AI-powered sales and marketing strategies are also significantly contributing to the market growth. By leveraging AI and analytics, retailers can gain deeper insights into market trends, customer preferences, and sales patterns. These insights empower retailers to formulate effective marketing strategies, segment their customer base more precisely, and deliver personalized promotions that resonate with the target audience, thereby driving higher conversion rates and sales.

Retail Analytics plays a pivotal role in transforming the way retailers understand and engage with their customers. By leveraging data-driven insights, retailers can make informed decisions that enhance customer satisfaction and operational efficiency. Retail Analytics encompasses a wide range of applications, from tracking customer behavior and preferences to optimizing pricing strategies and inventory management. This technology empowers retailers to anticipate market trends, personalize marketing efforts, and ultimately drive growth in a competitive landscape. As the retail industry continues to evolve, the integration of Retail Analytics is becoming increasingly essential for businesses aiming to stay ahead of the curve and deliver exceptional value to their customers.

From a regional perspective, North America is anticipated to dominate the spending on AI and analytics in the retail market, attributed to the early adoption of advanced technologies and the strong presence of key market players. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. The rapid digital transformation in retail sectors in countries like China and India, coupled with increasing investments in AI technologies, are major contributors to this growth. Additionally, the rising penetration of e-commerce and the growing middle-class population in these regions are driving the demand for advanced retail solutions.

Component Analysis

The AI and analytics market in retail can be segmented by components into software, hardware, and services. Software solutions are expected to hold the largest market share, driven by the increasing need for advanced analytics platforms and AI-driven applications. These software solutions enable retailers to analyze customer data, optimize supply chains, and improve decision-making processes. The integration of AI and machine learning algorithms into software platforms is further propelling their adoption.

Hardware components, although a smaller segment compared to software, play a crucial role in the implementation of AI and analytics solutions. This includes advanced sensors, IoT devices, and computing infrastructure necessary for data collection and processing. With the growing trend of smart retail environments, the demand for sophisticated hardware solutions is expected to rise. High-performance computing systems and edge devices are becoming essential for real-time data processing and analytics.

Artificial Intelligence (AI) in Retail Market Outlook

According to our latest research, the global Artificial Intelligence (AI) in Retail market size reached USD 9.5 billion in 2024, with a robust CAGR of 23.1% projected from 2025 to 2033. This trajectory is expected to propel the market to a substantial USD 74.5 billion by 2033, reflecting the rapid adoption of AI-driven solutions across the retail sector. The primary growth factor fueling this expansion is the increasing demand for personalized shopping experiences, operational efficiency, and advanced data analytics within the retail ecosystem.

The growth of the AI in Retail market is being significantly driven by the evolving expectations of consumers for highly personalized and seamless shopping experiences. Retailers are leveraging AI-powered recommendation engines, chatbots, and virtual assistants to deliver tailored product suggestions, streamline customer service, and enhance engagement across both online and offline channels. The integration of AI into loyalty programs and targeted marketing campaigns is enabling retailers to derive actionable insights from vast troves of customer data, thereby boosting conversion rates and fostering brand loyalty. As digital transformation accelerates post-pandemic, retailers are increasingly investing in AI technologies to stay competitive and responsive to shifting consumer behaviors.

Another major growth driver is the operational efficiency and cost reduction enabled by AI-powered automation in retail. AI applications such as demand forecasting, automated inventory management, and intelligent supply chain solutions are minimizing stockouts, reducing excess inventory, and optimizing logistics. Machine learning algorithms are empowering retailers to predict trends, manage dynamic pricing, and streamline procurement processes. This not only enhances profitability but also supports sustainable business practices by reducing waste and improving resource utilization. Furthermore, AI-driven fraud detection and risk management systems are helping retailers safeguard against cyber threats, ensuring secure transactions and protecting consumer data.

The proliferation of omnichannel retailing and digital commerce is further catalyzing the adoption of AI in the retail sector. Retailers are harnessing AI to bridge the gap between physical and digital storefronts, offering unified customer experiences through integrated platforms. Computer vision technology is being deployed in stores for automated checkout, real-time inventory tracking, and customer behavior analysis. The rise of AI-powered virtual fitting rooms, augmented reality applications, and voice-activated shopping assistants is reshaping the in-store experience, driving foot traffic, and increasing sales conversion rates. With the expansion of e-commerce and the growing sophistication of AI tools, retailers are poised to unlock new revenue streams and gain a competitive edge in the market.

From a regional perspective, North America currently leads the AI in Retail market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The high adoption rate of advanced technologies, presence of major AI vendors, and strong e-commerce infrastructure contribute to North America's dominance. Meanwhile, Asia Pacific is witnessing the fastest growth, driven by rapid digitalization, rising consumer spending, and increasing investments in AI by retail giants in China, Japan, and India. Europe is also experiencing steady growth, propelled by stringent data privacy regulations and a focus on enhancing customer experience. The Middle East & Africa and Latin America are emerging markets, with growing opportunities for AI adoption as digital transformation initiatives gain momentum across the retail landscape.

Component Analysis

The AI in Retail market is segmented by component into Software, Hardware, and Services. The software segment holds the largest mar

This statistic depicts the results of a survey conducted in January 2018 about the share of consumers using mobile apps for online shopping across India, by age group. During the survey period, around ** percent of banking consumers aged 27 to 37 stated that they used mobile apps for online shopping payments in India.

AI Dermatology Kiosk in Retail Market Outlook

According to our latest research, the AI Dermatology Kiosk in Retail market size reached USD 746 million in 2024, reflecting robust adoption across global retail environments. The market is expected to grow at a CAGR of 22.1% from 2025 to 2033, with the forecasted market size projected to reach USD 4.84 billion by 2033. This significant growth is primarily driven by increasing consumer demand for accessible dermatological assessments, rising integration of artificial intelligence in retail healthcare solutions, and a growing emphasis on preventive skin health management.

One of the primary growth factors fueling the expansion of the AI Dermatology Kiosk in Retail market is the increasing consumer awareness regarding skin health and early disease detection. With the prevalence of skin conditions such as acne, eczema, and melanoma on the rise globally, consumers are seeking convenient and immediate access to dermatological assessments. AI-powered kiosks placed in retail environments bridge the gap between professional dermatology services and consumers, offering real-time skin analysis and recommendations. The convenience of accessing these services during routine shopping trips, combined with the growing trust in AI-driven diagnostics, is accelerating adoption rates. Moreover, as consumers become more proactive about their health and appearance, the demand for accessible, non-invasive, and cost-effective dermatology solutions continues to surge, further propelling market growth.

The rapid advancements in artificial intelligence, machine learning, and imaging technologies have significantly enhanced the accuracy and reliability of AI dermatology kiosks. Modern kiosks are equipped with high-resolution imaging systems and sophisticated AI algorithms capable of analyzing a wide range of skin conditions, from benign lesions to early signs of skin cancer. The integration of cloud-based platforms and teledermatology features enables seamless connectivity with healthcare professionals for remote consultations and second opinions. Retailers are increasingly leveraging these technological innovations to differentiate their offerings, enhance customer experience, and drive foot traffic. Additionally, partnerships between technology providers, dermatologists, and retail chains are fostering innovation and expanding the scope of services offered by these kiosks, making them an attractive investment for both healthcare and retail sectors.

The evolving regulatory landscape and supportive government initiatives aimed at improving public health infrastructure are also contributing to market growth. Many countries are recognizing the potential of AI-driven diagnostic tools in addressing the shortage of dermatologists and reducing the burden on healthcare systems. Regulatory bodies are establishing guidelines to ensure the safety, efficacy, and ethical use of AI in medical devices, which is instilling confidence among retailers and end-users. Furthermore, the ongoing digital transformation in healthcare, coupled with increasing investments in AI and IoT technologies, is creating a conducive environment for the widespread deployment of AI dermatology kiosks in retail settings. The ability to integrate these kiosks with electronic health records and other digital health platforms is further enhancing their value proposition and market penetration.

Regionally, North America holds the largest market share, driven by high consumer awareness, advanced healthcare infrastructure, and the presence of leading technology providers. Europe follows closely, benefiting from strong regulatory support and a growing focus on preventive healthcare. The Asia Pacific region is witnessing the fastest growth, fueled by rising disposable incomes, increasing urbanization, and expanding retail networks. Latin America and the Middle East & Africa are emerging markets with significant untapped potential, as retailers and healthcare providers explore innovative solutions to address the growing burden of skin diseases. As the market continues to evolve, regional dynamics will play a crucial role in shaping the competitive landscape and growth trajectory of the AI Dermatology Kiosk in Retail market.

AI Size Recommendation Widget Market Outlook

According to our latest research and analysis, the AI Size Recommendation Widget market size reached USD 1.42 billion globally in 2024, reflecting the rapid adoption of artificial intelligence in retail and e-commerce environments. With a robust compound annual growth rate (CAGR) of 18.7% projected from 2025 to 2033, the market is expected to expand to USD 6.91 billion by 2033. This substantial growth is primarily driven by the increasing demand for personalized shopping experiences and the necessity for retailers to reduce product returns and enhance customer satisfaction.

One of the core growth factors for the AI Size Recommendation Widget market is the ongoing digital transformation within the retail sector. Retailers and brands are under constant pressure to improve the customer journey and minimize friction points, particularly in online shopping where size and fit issues are the leading causes of product returns. The integration of AI-powered size recommendation widgets addresses these challenges by leveraging advanced algorithms, machine learning, and data analytics to provide accurate size suggestions based on user data, previous purchases, and even social media activity. This not only reduces return rates but also boosts consumer confidence, leading to higher conversion rates and increased brand loyalty. As more retailers recognize the direct correlation between AI-driven personalization and revenue growth, investment in these widgets is accelerating.

Another significant driver is the proliferation of e-commerce platforms and the corresponding rise in cross-border online shopping. With consumers purchasing apparel, footwear, and accessories from international brands, sizing inconsistencies across regions have become a notable pain point. AI Size Recommendation Widgets can bridge this gap by standardizing size recommendations and adapting to local sizing charts, thus ensuring a seamless shopping experience for global customers. The adoption of cloud-based solutions further enhances scalability and accessibility, making it easier for small and medium enterprises (SMEs) as well as large enterprises to deploy these widgets without heavy upfront investments in infrastructure. The trend toward mobile commerce and omnichannel retailing is also propelling the market forward, as AI widgets can be seamlessly integrated into mobile apps and physical stores alike.

The market is also benefiting from advancements in computer vision and deep learning technologies, which are enabling more sophisticated and accurate body measurement techniques. Solutions now incorporate features such as virtual try-ons, 3D body scans, and AR-powered fitting rooms, all powered by AI engines that learn and improve over time. These innovations not only enhance the accuracy of size recommendations but also create unique, engaging shopping experiences that differentiate brands in a crowded marketplace. The growing availability of high-quality data, combined with the falling cost of AI technologies, is lowering barriers to entry and fostering innovation across the ecosystem. As a result, the competitive landscape is becoming more dynamic, with established players and startups alike racing to capture market share.

From a regional perspective, North America continues to dominate the AI Size Recommendation Widget market, accounting for the largest share in 2024, followed by Europe and Asia Pacific. The United States is at the forefront due to its advanced retail infrastructure, high e-commerce penetration, and early adoption of AI technologies. However, Asia Pacific is witnessing the fastest growth, driven by the explosive rise of online shopping in countries such as China, India, and Southeast Asian nations. The region's burgeoning middle class, increasing smartphone penetration, and tech-savvy consumers are creating fertile ground for AI-based retail innovations. Meanwhile, Europe is also experiencing steady growth, particularly in markets like the UK, Germany, and France, where fashion and apparel e-commerce is highly developed. Latin America and the Middle East & Africa are emerging markets, with significant potential as digital infrastructure matures and consumer preferences shift toward online shopping.

Component Analysis

The Component segment of the AI Size Recommendation Widget market is categorized into Software, Hardware, and Services. Sof

The COVID-19 pandemic marked a change of pace in e-commerce personalization. According to a global study, in 2017, 44 percent of consumers stated they would become repeat buyers after a personalized digital shopping experience. After the global e-commerce surge in 2021, the figure declined but remained higher than pre-pandemic levels. As of 2023, 56 percent of surveyed consumers were driven to purchase again from a retailer providing online personalization. Regional variations in personalization preferences The demand for personalized online shopping experiences varies across countries. In the United States, nearly half of consumers desire personalized service when buying online, leading a ranking of 17 countries. Spain and Australia follow closely, with 42 percent of respondents expressing similar preferences. Another survey showed that Portuguese consumers show the highest appetite for personalized product recommendations, with over 50 percent desiring such features. Data privacy concerns While personalization is increasingly valued, concerns about data privacy persist, particularly among older consumers. A 2024 survey revealed that 55 percent of U.S. consumers aged 55 to 59 are the least likely to share personal data with AI technologies for shopping purposes. In contrast, only 25 percent of shoppers aged 18 to 24 express such reservations. This generational divide extends to AI-driven personalization, with 43 percent of Baby Boomers globally rejecting AI personalization in their customer journey, compared to just 15 percent of Gen Z shoppers.

According to a study conducted in late 2024, consumer goods and retail executives said they were planning to increase their AI budget in 2025. Spending outside of the IT department would add up to 2.28 percent of the annual revenue and was expected to increase by 52 percent compared to the previous year.

The Global AI In Retail Market size was valued at USD 7.34 billion in 2023 and is projected to reach USD 32.90 billion by 2032, exhibiting a CAGR of 23.9 % during the forecasts period. AI in retail has become a game changer in delivering new customer experiences and reducing costs. Retailers employ AI for product recommendation, improving the customer experience through the use of chatbots, and inventory management. Using complex algorithms and data-crunching capabilities, AI is able to discern consumer preferences, pricing models and supply chain management solutions. Facial recognition and computer vision make self-checkout processes smooth, whereas AI improves marketing initiatives for personalized interaction. AI implementation empowers decision-making processes, optimizes functioning in retail companies, and drives innovation that allows companies to remain competitive in a constantly changing market and result in customer satisfaction and sustainable business development.

A survey conducted in Italy in 2024, showed what are the options available for the Italians when it comes to grocery shopping. Over 60 percent said they have the online shopping option available and therefore use it, followed by almost 50 percent who have to do the shopping process in person but can het the groceries delivered. There are still almost 15 percent who said they do not have any of the options presented by the survey available.

AI Enabled Kiosks Market Outlook

The AI-enabled kiosks market size was valued at approximately $2.5 billion in 2023 and is projected to reach around $7.1 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.5% during the forecast period. The significant growth in this market is driven by the increasing demand for automation and efficient customer service solutions across various industries. The integration of artificial intelligence (AI) into kiosks enhances operational efficiency by offering personalized user experiences and reducing human errors, which is a key growth factor.

The deployment of AI-enabled kiosks is rapidly expanding due to advancements in AI technologies such as machine learning, natural language processing, and computer vision. These technologies enable kiosks to perform complex tasks such as facial recognition, voice interaction, and real-time data analysis, which are critical for enhancing customer engagement and optimizing business operations. Additionally, the rising need for contactless services in the wake of the COVID-19 pandemic has further accelerated the adoption of AI-enabled kiosks in various sectors including retail, healthcare, and hospitality. The ability to provide 24/7 service without human intervention is another substantial factor contributing to the market's growth.

Another significant growth driver for the AI-enabled kiosks market is the increasing preference for self-service solutions among consumers. Self-service kiosks offer convenience, speed, and a streamlined user experience, which are attractive features for customers. Retailers, for instance, are leveraging AI-enabled kiosks to facilitate quick checkouts, inventory management, and personalized shopping experiences. In healthcare, these kiosks assist in patient check-ins, wayfinding, and even preliminary medical screenings, thereby reducing the burden on medical staff and enhancing the overall efficiency of healthcare delivery. The banking sector is also witnessing a surge in the use of AI-enabled kiosks for tasks such as account management, loan applications, and customer support, thereby driving market growth.

The cost-effectiveness of AI-enabled kiosks is another crucial factor propelling market growth. Businesses are increasingly recognizing the long-term savings associated with deploying AI-driven kiosks, which can significantly reduce labor costs and improve operational efficiency. The initial investment in these advanced kiosks is offset by the reduction in ongoing operational expenses and the ability to provide consistent and high-quality service. Moreover, the scalability of AI technologies allows businesses to easily upgrade their kiosks with new functionalities and features, ensuring that they remain competitive and can meet evolving consumer demands. This flexibility and cost efficiency are encouraging more businesses to invest in AI-enabled kiosks.

Regionally, North America holds a significant share of the AI-enabled kiosks market due to the rapid adoption of advanced technologies and a high concentration of key market players. The region's developed infrastructure and consumer readiness to adopt new technologies are also contributing factors. Asia Pacific is expected to witness the highest growth rate during the forecast period, driven by increasing investments in AI technologies, growing retail and healthcare sectors, and the rising demand for automated services in emerging economies such as China and India. Europe is also a notable market for AI-enabled kiosks, with significant adoption in retail and transportation sectors, while Latin America and the Middle East & Africa are gradually emerging as potential markets, driven by economic development and technological advancements.

Component Analysis

The AI-enabled kiosks market is segmented by components into hardware, software, and services. Hardware components form the backbone of AI-enabled kiosks, comprising various physical elements such as touchscreens, sensors, cameras, and payment systems. The demand for high-quality, durable hardware is essential for ensuring the reliability and functionality of these kiosks. Advanced hardware components equipped with AI capabilities, such as facial recognition cameras and biometric sensors, are becoming increasingly popular. The hardware segment is expected to grow steadily as businesses continue to invest in robust and secure physical components to enhance the performance and user experience of their kiosks.

Software is another critical component of AI-enabled kiosks, encompassing the operating systems, AI algorithms, and applications that drive the fu

The size of the Global Advanced Shopping Technology market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 12.30% during the forecast period.Advanced shopping technology is the use of new technologies to make shopping easier and enjoyable. This ranges from wide arrays of technologies, including artificial intelligence, augmented reality, virtual reality, and Internet of Things (IoT) devices. These technologies have changed the shopping experience and made it personal, convenient, and engaging as well.Advanced shopping technologies will enable retailers to give personalized product recommendations, virtual try-on experiences, and smooth checkout processes for customers. Advanced algorithms will analyze customer data and understand preferences and recommend products accordingly. Augmented reality will enable customers to see products in their surroundings, while virtual reality gives customers an immersive shopping experience. IoT devices like smart mirrors and smart shelves give customers real-time product information and updates.The growth of the global advanced shopping technology market is primarily due to the increase in the use of e-commerce, rise in the demand for more tailored shopping experiences, and the growth rate of technological advances. The customers have become technically aware and are looking forward to experiencing a smooth shopping process; this creates further demand for advanced technologies in shopping. Recent developments include: June 2021: Toshiba's Self Checkout System 7 solution, developed by Toshiba Global Commerce Solutions and Calimax, provides fast, convenient, and frictionless checkout experiences. Calimax and Toshiba are designing the checkout experiences that shoppers want, thanks to user input and a collaborative approach, resulting in more checkout alternatives for customers and more sales., July 2021: Toshiba Global Commerce Solutions, the well-known player in retail store technology, has announced a strengthened partnership with Stor.ai, the end-to-end digital commerce solution for grocers. The relationship will allow store. ai'splatform to be fully integrated into the retailer's environment, giving their clients the capabilities to build a scalable, online storefront with full infrastructure.. Key drivers for this market are: Increasing adoption of advance technology in retail sector, Artificial intelligence and robots in retail stores. Potential restraints include: High cost of implementation of the technology. Notable trends are: Increasing Adoption of Virtual Reality in the Retail Sector is Expected to Drive the Market.