Report Overview

As per the latest insights from Market.us, the global AI in eCommerce market is poised for significant growth over the next decade. The market size is expected to reach a value of USD 50.98 billion by 2033, up from USD 5.79 billion in 2023, reflecting a compound annual growth rate (CAGR) of 24.3% during the forecast period from 2024 to 2033. This rapid expansion underscores the growing reliance on artificial intelligence technologies to enhance eCommerce operations, from personalized recommendations to automated customer service.

In 2023, North America dominated the market, holding a substantial share of 38.6%, with a revenue of USD 2.23 billion. The region’s leadership is driven by the high adoption of AI-powered solutions, robust digital infrastructure, and strong investments in innovative technologies. As businesses increasingly seek to improve customer experiences and streamline operations, AI’s role in the eCommerce sector is expected to become even more pivotal, fueling growth in both developed and emerging markets.

The AI in e-commerce market is experiencing rapid growth, with significant investments directed towards enhancing customer engagement and operational efficiency. By 2025, the market size is projected to reach significant figures, driven by the widespread adoption of AI technologies such as chatbots, recommendation engines, and visual search tools. Retailers are leveraging these technologies to improve customer interaction, predict product demand, and create a more engaging shopping environment​.

According to the Adobe Digital Economy Index, online retail sales in the United States for the first quarter of 2021 made up 40% of total retail sales, compared to 36% during the same period in 2020. This noticeable increase highlights a clear spike in online shopping, which has been a key factor driving the growth and adoption of artificial intelligence (AI) in the e-commerce industry. As more consumers shift towards digital platforms for their shopping needs, businesses are increasingly leveraging AI to optimize customer experiences, streamline operations, and personalize interactions, further fueling the expansion of AI technologies within the sector.

The primary driving factors for AI in e-commerce include the need for enhanced customer personalization, improved operational efficiency, and competitive advantage. AI-driven personalization engines are able to tailor product recommendations and marketing messages based on individual user behavior, significantly enhancing the customer experience. Moreover, AI’s capability in inventory and supply chain management helps retailers reduce costs and improve service delivery by predicting demand and optimizing stock levels​.

The revenue in the e-commerce market in the United States was forecast to continuously increase between 2025 and 2029 by in total 498.2 billion U.S. dollars (+37.16 percent). After the tenth consecutive increasing year, the revenue is estimated to reach 1.8 trillion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the e-commerce market was continuously increasing over the past years.Find other key market indicators concerning the average revenue per user (ARPU) and number of users. The Statista Market Insights cover a broad range of additional markets.

Analyst Viewpoint

The AI in eCommerce market is poised for rapid expansion, driven by the increasing integration of AI-powered tools to enhance customer experiences and optimize operational efficiency. As businesses increasingly adopt AI for customer service, sales forecasting, and personalized shopping experiences, the demand for AI solutions will continue to grow. Cloud-based solutions and software will remain dominant as they offer scalability and flexibility. However, challenges such as data privacy concerns and implementation costs must be addressed to maintain market growth.

During a 2024 survey, it was found that customer service and support were the leading application of artificial intelligence in ecommerce marketing, named by ** percent of responding ecommerce marketers from Australia, France, New Zealand, the United Kingdom (UK), and the United States. Data analysis and image generation ranked second, both mention by ** percent of respondents.

Recent developments include: In January 2024, Microsoft became the second company ever to be valued at USD 3 trillion against the backdrop of AI investments and optimism. The announcement of multibillion-dollar infusion of funds into OpenAI in January 2023 has expedited breakthroughs in AI and the American behemoth expects the collaboration to foster cutting-edge AI research and democratize AI. , In October 2023, Google reportedly pledged to pour USD 2 billion in OpenAI rival startup Anthropic. In the previous month, the e-commerce giant Amazon announced up to USD 4 billion investment in the startup to bolster its position in generative artificial intelligence. .

Key Takeaways

• The Global AI in Retail Market is projected to reach a value of USD 127.2 billion by 2033, exhibiting a robust Compound Annual Growth Rate (CAGR) of 29.9% throughout the forecast period.
• In 2023, the AI in Retail market was valued at USD 9.3 billion.
• AI technologies are transforming various aspects of the retail industry, enhancing customer experiences, optimizing operations, and driving business growth.
• Key applications of AI in retail include personalized recommendations, inventory management, demand forecasting, chatbots for customer service, visual search, pricing optimization, and fraud detection.
• Adoption of AI in retail is fueled by the increasing availability of data, advancements in AI and machine learning technologies, and the adoption of e-commerce and omnichannel retail strategies.
• 87% of retailers acknowledge that AI has improved the customer experience, while 76% report benefits in supply chain optimization.
• Approximately 86% of retailers have implemented AI or automation in some form within their operations.
• 49% of retailers have experienced cost savings due to AI integration, while 43% have seen increased revenues and 44% improved productivity.
• Price optimization is the top investment priority for 73% of retailers, followed by predictive analytics at 61%.
• The Solution segment dominates the AI in Retail market, capturing over 74.1% share in 2023, driven by the adoption of AI-powered solutions to enhance customer experience and optimize operations.
• Machine Learning is the leading technology segment, holding over 37% market share in 2023, due to its efficiency in processing large datasets and enhancing customer experiences.
• The Customer Relationship Management (CRM) segment leads the market with over 22.7% share in 2023, focusing on personalized interactions and customer satisfaction.
• Omni-Channel Retailers command over 44.2% market share in 2023, followed by North America as the leading region with over 39.3% market share in the same year.
• North America's leadership in the AI in Retail market is attributed to technological advancements, early adoption by retailers, and a tech-savvy consumer base.

United States Artificial Intelligence (AI) Market By Size, Share, Trends, Growth, Forecast 2018-2028, Segmented By Type, By Technology, By Deployment, By Industry, By Region, Competition Forecast and Opportunities

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Artificial Intelligence (AI) Market In Retail Sector Size 2024-2028

The artificial intelligence (ai) market in retail sector size is forecast to increase by USD 42.22 billion, at a CAGR of 42% between 2023 and 2028.

The Artificial Intelligence (AI) market in retail is experiencing significant growth, fueled by escalating investments and research and development in AI startups. This trend is driven by the increasing adoption of AI technologies in various retail applications, particularly in e-commerce, where AI is being used for personalized product recommendations, fraud detection, and customer service. However, the deployment of AI in retail comes with challenges. One of the most pressing issues is privacy concerns. Retailers must address these challenges by implementing robust data security measures and transparent communication with customers regarding the collection and use of their data.
Effective management of these challenges will enable retailers to capitalize on the vast opportunities presented by AI, enhancing customer experiences, improving operational efficiency, and driving innovation in the retail sector.

What will be the Size of the Artificial Intelligence (AI) Market In Retail Sector during the forecast period?

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The retail sector continues to witness the integration of artificial intelligence (AI) technologies, revolutionizing various aspects of business operations. From promotion optimization to customer service automation, AI applications span across numerous retail functions. Image recognition and machine learning algorithms enhance operational efficiency by automating tasks such as inventory management and data mining. Sales forecasting and demand prediction are further advanced through AI-powered recommendations and real-time analytics. Facial recognition and customer segmentation enable personalized shopping experiences, while virtual assistants and recommendation systems streamline the customer journey. AI's role extends to supply chain management, cost reduction, and targeted advertising through retail analytics and predictive analytics.

Moreover, AI's integration into omni-channel retail enhances conversion rates, customer satisfaction, and loyalty programs. Automated checkout and process automation contribute to efficiency gains, while deep learning and marketing automation optimize pricing and UX. Data security and decision support systems ensure data-driven insights for business intelligence and sentiment analysis. Fraud detection and predictive modeling further strengthen retail operations, with smart shelves and business intelligence systems providing valuable insights for retailers. AI's continuous evolution in the retail sector is transforming the industry, offering endless opportunities for innovation and growth.

How is this Artificial Intelligence (AI) In Retail Sector Industry segmented?

The artificial intelligence (ai) in retail sector industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Sales and marketing
  In-store
  PPP
  Logistics management


Geography

  North America

    US
    Canada


  Europe

    UK


  APAC

    China
    Japan


  Rest of World (ROW)

By Application Insights

The sales and marketing segment is estimated to witness significant growth during the forecast period.

In the retail sector, artificial intelligence (AI) is revolutionizing sales and marketing functions. Customer Relationship Management (CRM) strategies are enhanced through AI, allowing businesses to understand customer interaction histories and tailor sales efforts accordingly. Operational efficiency is a priority, with AI-based chatbots and virtual assistants driving customer engagement and freeing up human resources. Machine learning algorithms, image recognition, and predictive analytics are key technologies, powering personalized shopping experiences, targeted advertising, and real-time inventory management. Cloud computing enables seamless data access for AI applications, from demand forecasting to sentiment analysis and fraud detection. AI-powered recommendation systems and supply chain management optimize sales conversion and reduce costs.

Businesses are embracing omni-channel retail, integrating AI into various touchpoints, from mobile commerce to in-store analytics. Deep learning and computer vision technologies further enhance the customer experience, with applications in price optimization, shelf optimization, and predictive modeling. Data security and decision support systems are essential considerations, ensuring customer satisfactio

The highest CAGR for the period of 2017 and 2028 was estimated to be in the food segment, amounting to almost ** percent growth. The segment of beauty, health, personal & household care is estimated to have over ** percent compound annual growth rate during this period.

The revenue change in the fashion e-commerce market in the United States was forecast to decrease between 2024 and 2029 by in total *** percentage points. This overall decrease does not happen continuously, notably not in 2026. According to this forecast, in 2029, the indicator will have decreased for the third consecutive year to **** percent. Find more information concerning the Nordics and Israel.The Statista Market Insights cover a broad range of additional markets.

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US B2C E-Commerce Market Size 2025-2029

The us b2c e-commerce market size is forecast to increase by USD 289.2 billion at a CAGR of 8.7% between 2024 and 2029.

The B2C E-Commerce Market in the US is experiencing significant growth, driven by the increasing trend of online spending and the widespread adoption of smartphones. Consumers are increasingly turning to e-commerce platforms for convenience and the ability to shop from anywhere at any time. The emergence of omnichannel retailing, which integrates online and offline channels, is further fueling this growth. However, the market also faces challenges, with logistics management becoming a critical aspect of e-commerce operations. The need to efficiently manage and deliver products to customers in a timely manner has resulted in high overhead costs for retailers. Effective logistics strategies will be essential for companies seeking to capitalize on the opportunities presented by the growing e-commerce market while navigating these challenges. Success in this market will require a focus on providing seamless shopping experiences, efficient logistics, and competitive pricing. Companies that can successfully balance these factors will be well-positioned to thrive in the dynamic and evolving e-commerce landscape.

What will be the size of the US B2C E-Commerce Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the B2C e-commerce market in the US, omni-channel retail strategies have gained prominence, integrating bricks-and-mortar stores with online platforms for a seamless customer experience. Cloud computing enables businesses to manage their operations more efficiently, while multi-channel marketing caters to consumers' preferences. Customer journey mapping and experience (CX) optimization are key priorities, with video and influencer marketing playing crucial roles. Logistics optimization and security audits ensure smooth transactions and safeguard sensitive data. Blockchain technology, data encryption, and data warehousing bolster security and streamline processes. Digital wallets and mobile payments facilitate hassle-free transactions, and live streaming and responsive design enhance user interface (UI) and customer engagement. Supply chain management, big data, predictive analytics, and delivery automation optimize operations, while two-factor authentication and personalized recommendations cater to individual consumers. Social commerce and content marketing foster community building and brand loyalty. Innovations like delivery drones and augmented reality try-on features continue to shape the market landscape. As e-commerce competition intensifies, businesses must stay agile and adapt to the latest trends to thrive.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeB2C retailersClassifiedsApplicationConsumer electronics and home appliancesApparel and accessoriesPersonal careOthersPlatformMulti-brandSingle-brandGeographyNorth AmericaUS

By Type Insights

The b2c retailers segment is estimated to witness significant growth during the forecast period.

The B2C e-commerce market in the US is experiencing significant growth, driven by the increasing preference for online shopping and the availability of secure payment platforms. E-commerce sales have been on the rise, with consumers drawn to the convenience and wide product selection offered by digital retailers. To enhance customer experience, companies employ marketing automation, social media marketing, and personalized recommendation engines. Customer service is also prioritized through multiple channels, including chatbots and AI-powered support. Subscription models, inventory management, and order management systems ensure seamless transactions, while compliance regulations safeguard consumer data. Data analytics and machine learning enable targeted customer segmentation and personalized marketing. Mobile commerce (m-commerce) and voice search optimization cater to the growing use of mobile devices for shopping. Loyalty programs and product reviews foster brand loyalty and trust. E-commerce platforms offer various payment gateway options, ensuring secure transactions using the latest security protocols. Augmented reality (AR) and virtual reality (VR) enhance the shopping experience, while shopping cart software and shipping logistics streamline the ordering process. Fraud detection and A/B testing are essential for maintaining customer satisfaction and trust. Returns and refunds are managed efficiently, ensuring a hassle-free shopping experience. Onlin

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The revenue in the fashion e-commerce market in North America was forecast to continuously increase between 2024 and 2029 by in total 114.7 billion U.S. dollars (+52.36 percent). After the tenth consecutive increasing year, the indicator is estimated to reach 333.79 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the fashion e-commerce market was continuously increasing over the past years.Find more information concerning the Nordics and the United States. The Statista Market Insights cover a broad range of additional markets.

Data Collection and Labeling Market Outlook 2032

The global data collection and labeling market size was USD 27.1 Billion in 2023 and is likely to reach USD 133.3 Billion by 2032, expanding at a CAGR of 22.4 % during 2024–2032. The market growth is attributed to the increasing demand for high-quality labeled datasets to train artificial intelligence and machine learning algorithms across various industries.



Growing adoption of AI in e-commerce is projected to drive the market in the assessment year. E-commerce platforms rely on high-quality images to showcase products effectively and improve the online shopping experience for customers. Accurately labeled images enable better product categorization and search optimization, driving higher conversion rates and customer engagement.



Rising adoption of AI in the financial sector is a significant factor boosting the need for data collection and labeling services for tasks such as fraud detection, risk assessment, and algorithmic trading. Financial institutions leverage labeled datasets to train AI models to analyze vast amounts of transactional data, identify patterns, and detect anomalies indicative of fraudulent activity.

Impact of Artificial Intelligence (AI) in Data Collection and Labeling Market

The use of artificial intelligence is revolutionizing the way labeled datasets are created and utilized. With the advancements in AI technologies, such as computer vision and natural language processing, the demand for accurately labeled datasets has surged across various industries.



AI algorithms are increasingly being leveraged to automate and streamline the data labeling process, reducing the manual effort required and improving efficiency. For instance,

• 
  

  In April 2022, Encord, a startup, introduced its beta version of CordVision, an AI-assisted labeling application that inten

From October to December 2024, U.S. retail e-commerce sales amounted to roughly 309 billion U.S. dollars, marking an increase compared to the previous quarter. Overall, retail e-commerce sales outdid the quarterly sales records registered in 2020. E-commerce in the post-pandemic era During the second quarter of 2020, as COVID-19 spread across the globe, the U.S.'s quarterly e-commerce revenue reached 200 billion for the first time in history. In 2021, online retail sales account for ten percent of total retail in the United States. Clothing and accessories, including footwear, is one of the largest B2C e-commerce merchandise categories. Retail e-commerce sales in the United States are estimated from samples used for the Monthly Retail Trade Survey and exclude online travel services, ticket sales agencies, and financial brokers. Latest trend? Quick commerce Shoppers expect fast delivery of their purchases, especially when it comes to grocery products. This segment of the e-commerce industry goes under quick commerce and is expected to generate increasing revenue in the next years. Major quick commerce companies like Instacart or Uber Eat operate in the United States, where the quick commerce market is forecast to hit nearly 40 billion U.S. dollars by 2027.

A 2024 survey carried out in the United States showed that young shoppers aged 18 to 24 years old were the most enthusiastic toward artificial intelligence (AI). 47 percent of them believed AI could provide more timely responses to their requests. In turn, only 21 percent of respondents between 55 and 59 years old had the same opinion. Age-based perceptions of AI in retail The enthusiasm for AI-powered features in online shopping decreases with age. This trend extends beyond the U.S., with a similar pattern observed in the UK, where ** percent of Millennials and ** percent of Gen Z shoppers show enthusiasm for AI personalization, compared to just ** percent of Boomers. Evolving attitudes towards AI in retail Despite the generational gap, AI's role in retail is expected to grow. Half of U.S. adults anticipate AI playing a larger part in the retail industry, though this represents a decrease from previous years. Moreover, ** percent of respondents view AI's effect on the retail sector as somewhat positive, indicating a nuanced perception of AI's value in online shopping.

The online revenue of autonomous.ai amounted to US$29.6m in 2024. Discover eCommerce insights, including sales development, shopping cart size, and many more.

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Apparel and accessories was the e-commerce category with the highest share in total retail sales in the United States as of February 2023. 18.3 percent of all retail sales in the fashion segment were generated online. The category with the second-highest percentage of retail sales in the U.S. was furniture, at 15.7 percent. At the other end of the spectrum, office equipment and supplies had the lowest share of retail sales, below two percent.

The continuous rise of e-commerce

Online shopping is on the rise in the United States. The share of all retail sales in the U.S. stemming from online shopping has increased from 4.2 percent in the first quarter of 2010 to a record-breaking 15.6 percent in the third quarter of 2023. Consequently, the sales of retail e-commerce have surged from 39 million U.S. dollars in the first quarter of 2010 to more than 280 billion U.S. dollars in the third quarter of 2023. This boom is forecast to continue over the next few years, with the estimated revenue from online sales, including digital services, reaching 1.72 trillion U.S. dollars by 2027.

The king of e-commerce

In the United States, the number of online shoppers continues to grow. In 2023, there were more than a quarter of a million online shoppers, and the number is forecast to reach over 300 million by 2028. The most popular online shopping destination in the U.S., Amazon, sees a surge of shoppers during certain shopping occasions, which feature appealing bargains that encourage extravagant spending. In 2023, the biggest increase in sales occurred on Black Friday, with an increase of nearly 35 percent. Amazon's deal event for Prime members, Prime Day, saw 17 percent more sales. As for Cyber Monday, sales went up by 13 percent.

Snapshot img

Artificial Intelligence (AI) In Food And Beverage Industry Market Size 2025-2029

The artificial intelligence (AI) in food and beverage industry market size is forecast to increase by USD 32.2 billion, at a CAGR of 34.5% between 2024 and 2029.

The Artificial Intelligence (AI) market in the Food and Beverage industry is witnessing significant growth, driven by the rising demand for automation to enhance productivity and streamline operations. The integration of Industrial Internet of Things (IIoT) in food and beverage processing is a key trend, enabling real-time monitoring and predictive maintenance, leading to improved efficiency and quality. However, the lack of skilled personnel poses a significant challenge in implementing and managing AI technologies, necessitating investments in training and development programs.
Companies in the food and beverage sector seeking to capitalize on the opportunities presented by AI must focus on addressing this talent gap while also ensuring compliance with data security regulations and ethical considerations in the use of AI technologies. Effective collaboration between industry players, academia, and governments can help bridge the skills gap and foster innovation in the sector.

What will be the Size of the Artificial Intelligence (AI) In Food And Beverage Industry Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The food and beverage industry continues to experience dynamic market activities, driven by the integration of artificial intelligence (AI) technologies. From recipe development to production efficiency, AI applications span various sectors, shaping the industry's evolving landscape. Robotics and automation streamline processes, ensuring consistent product quality and reducing labor costs. Smart packaging with embedded sensors monitors food freshness and safety, enhancing consumer trust. AI-driven trend forecasting and social media marketing strategies help businesses stay competitive. Deep learning models optimize ingredient usage, improve demand forecasting, and enable personalized nutrition recommendations. Computer vision algorithms facilitate image recognition for food labeling regulations and allergen detection.

AI-powered sensory analysis refines flavor profiling and dietary recommendations. Sustainability reporting, precision fermentation, and food waste reduction are key areas where AI contributes to industry innovation. Business model development and supply chain management are optimized through AI-driven data analytics platforms and e-commerce solutions. AI's role in the food and beverage industry extends to food safety, consumer insights, and competitive landscape analysis. Food fraud detection and cloud-based solutions further enhance transparency and efficiency. The continuous integration of AI technologies promises a future of smart, sustainable, and personalized food production and delivery.

How is this Artificial Intelligence (AI) In Food And Beverage Industry Industry segmented?

The artificial intelligence (AI) in food and beverage industry industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Transportation and logistics
  Production planning
  Quality control
  Others


End-user

  Food processing industry
  Hotels and restaurants
  Beverage industry


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

.

By Type Insights

The transportation and logistics segment is estimated to witness significant growth during the forecast period.

In the food and beverage industry, automation is becoming a key trend as players seek to optimize operations and improve production efficiency. This is particularly evident in intralogistics, where manufacturers, beverage wholesalers, breweries, and bottling plants are employing advanced technologies such as machine vision systems, robotics, and automation to streamline their warehousing and distribution processes. The need for flexibility and swift returns processing is also driving demand for these solutions. The transportation and logistics segment of the global AI market in food and beverage industry is poised for growth, with manufacturers investing in precision fermentation, deep learning models, and other advanced technologies to enhance their manufacturing processes.

The emergence of digitization and new business models is bringing about a paradigm shift in the industry. Food labeling regulations and product traceability are also major considerations for player