Publication Month: Feb 2018 | Report Code: TIPTE100000703 | No. of Pages: 170 | Category: Technology, Media and Telecommunications | Status: Published
The tremendous growth in the mobile market is expected to encourage the widespread adoption of AI in retail. As more shoppers continue to demand personalized experiences, retailers are expected to continue to benefit from integrating artificial intelligence at every step. Leveraging the fact that mobile devices are used primarily for personal activities, retailers will be able to gather more relevant data and shopping history information to help improve the customer experience. Furthermore, over time consumers turn to familiarize themselves with tech even when shopping at a brick-and-mortar location. Nearly 77% of all shoppers use a mobile device to search for product information while shopping in physical stores, whereas the rest are willing to consult an in-store salesperson with product questions.
Although it seems simple and interesting to envision a complicated collection of artificial intelligence-driven components integrating to make an entirely automated and precisely personalized customer experience, it is highly prone to frequent failures in the present scenario. Most retailers are not yet ready for such investments, as the returns might vary significantly and may not meet the users' expectations. The complexity and high cost of implementation of artificial intelligence are key factors that might refrain retailers from investing in the technology. This might hamper artificial intelligence in retail market growth.
However, in coming years, as a large number of companies come up with convenient and economic artificial intelligence solutions for retailers, the doubts among the small and medium retailers regarding implementation and application of advanced technologies are expected to diminish; thus, it is expected to drive the artificial intelligence in retail market growth during the forecast period.
APAC is home to some fastest-emerging economies such as China, India, Australia, and Japan. Retail spending in Asia Pacific is directly proportional to the rising income levels and wealth. The disposable personal income in the key countries of APAC in the past 15 years has grown 7.85% on average. Owing to this, the retailers in Asia Pacific have developed strategic investment planning for the next five years. The adoption of artificial intelligence in Asian countries in the next five years is estimated to grow by 45%. Singapore alone is expected to pour in the investment of approximately US$ 107 million. The Chinese technology giants such as Baidu have already chalked the investment of up to US$ 430 million for R&D of artificial technology. Japan is no less in terms of its investments in artificial intelligence technologies. Nikkei Asian Review has revealed that the financial companies in the country are anticipated to substantially invest in artificial intelligence technologies including machine learning, chatbots, and other Al applications that would bring operational efficiency and profit to the industries. Rising penetration of smartphones, strengthening internet infrastructure, and immense government support are some of the other factors that are expected to boost the artificial intelligence in retail market share in APAC.
The artificial intelligence in retail market is segmented on the basis of retail format, technology, application, and geography. Artificial intelligence in retail market, by retail format, is segmented into e-commerce, and brick and mortar. Based on technology, the artificial intelligence in retail market is segmented into chat-bot, recommendation engine, audio–visual analytics, and others. By application, the artificial intelligence in retail market is segmented into sales & marketing, supply chain & logistics, shelf analytics, pricing, in-store navigation, auto-checkout, and others. On the basis of geography, the artificial intelligence in retail market size is primarily segregated into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).
IBM Watson, Amazon, Google Inc., Plexure, Focal Systems, Sentient Technologies Holdings Limited, ViSenze, Salesforce, Microsoft Corp, and Tata consultancy are a few leading players in the market, according to the artificial intelligence in retail market analysis.
According to the artificial intelligence in retail market, the application is segmented into sales & market, supply chain & logistics, customer experience & management, pricing, in-store navigation, auto check, and others. The customer experience & management led the artificial intelligence in retail market share in 2016 and is expected to continue its dominance throughout the forecast period. Customers these days are getting technology savvy and are capable of using the power of transparency to choose the suitable product/service between varieties of options. The experience of the customer in the entire process of buying is very critical for the retailers, as a poor experience may lead to the loss of the customer. This possesses a great threat to the retailers as brand loyalty decreases and the rate of switching increases. Therefore, to drive loyalty and repeat customers, retailers are now focusing on enhancing a complete customer experience from the moment they consider a purchase through to the after-sales service. Digital convergence is also considered as a growing opportunity for retailers to transform customers and set themselves apart. In the coming few years, interaction with various technologies such as chatbots is expected to reinvent the customer experience.
The players operating in the artificial intelligence in retail market are mainly focused on the development of advanced and efficient products. Artificial intelligence in retail market companies is implementing various strategies to match the technological advancements in the market.
In 2017, Salesforce delivered Einstein AI and Analytics for Field Service Lightning to support the mobile workforce by providing image recognition