AI In Retail Statistics By Market Size and Facts (2025)

Introduction

AI in Retail Statistics: Artificial Intelligence (AI) is transforming the retail world in exciting ways. Retailers utilise AI to comprehend customer needs, enhance their shopping experiences, and make informed decisions. By analysing data, AI enables businesses to determine which products customers are most likely to purchase next. It also helps with managing inventory, personalising recommendations, and even offering better customer support through chatbots.

AI is making stores smarter, whether online or in physical locations. As technology continues to evolve, it is expected that AI will play an increasingly significant role in making shopping easier and more enjoyable for customers, while also helping businesses grow and remain competitive.

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• Fortune Business Insights predicts that the global AI in retail market will increase from USD 9.36 billion in 2024 to USD 85.07 billion by 2032, growing at a compound annual growth rate (CAGR) of 31.8%.
• By 2026, 80% of retailers are projected to use AI to enhance their operations.
• In 2024, 78% of retail executives plan to invest between USD 500,000 and USD 5 million in AI technologies.
• Generative AI has the potential to increase retail profitability by 20% within the year.
• In India, 71% of retailers intend to implement AI within the next year, demonstrating its perceived value.
• AI in Retail Statistics further show that AI is expected to improve retail efficiencies by 59% by 2035.
• Currently, 50% of retailers claim to use AI in some form, although only 28% consider it a top investment priority.
• A recent survey found that 34% of consumers are willing to let AI make purchases on their behalf, while 66% prefer to make their own decisions.
• Retailers like Ocado are reducing the number of technology and finance jobs, with 500 positions cut due to AI-driven cost reductions.
• The AI-enabled e-commerce market is projected to reach USD 8.65 billion by 2025, growing to USD 22.6 billion by 2032, with a CAGR of 14.6%.

Predictive AI In Retail Statistics

• According to reports from Chain Storeage, 51% of retailers believe AI brings innovation, 49% say it reduces risk, 45% notice increased sales, and 43% think AI helps with personalising marketing campaigns.
• Additionally, 88% of retail professionals agree that Generative AI will have a medium to high impact on their businesses.
• Around 65% of retailers believe they have a good understanding of AI, describing it as “well” or “very well.”
• Khrisdigital reports show that 67% of retailers have clear plans to invest in AI.
• Over 60% of retailers intend to increase their investment in AI infrastructure within the next 18 months.
• More than 50% prefer a hybrid approach to AI deployment.
• Currently, 42% of retailers are already using AI, while 34% are testing or assessing it.
• For larger retailers with annual revenues exceeding USD 500 million, 64% are utilising AI, which is significantly higher than the industry average.

(Source: khrisdigital.com)

• Among those using AI, 69% report it has helped increase their annual revenue.
• According to 75% of retail decision-makers, generative AI is a key way for retailers to transform and reinvent their businesses.

(Source: sp-ao.shortpixel.ai)

• The global AI market in retail is expected to grow from USD 4.42 billion in 2024 to USD 5.1 billion by 2025.
• This growth represents a compound annual growth rate (CAGR) of 16.4% from 2025 to 2034, resulting in a total of USD 20.2 billion.
• The solution segment led the predictive AI retail market, holding a market share of over 59.2%.
• The Customer Experience Management (CEM) segment also held a significant share, representing over 24.3% of the market.
• The groceries and food sector was the largest in the predictive AI retail market in 2024, capturing more than 21.2% of the share.
• North America was a major player in the market in 2024, holding more than 34.1% of the global market share and generating USD 1.5 billion in revenue.
• In the U.S., the predictive AI robotics market was valued at USD 1.32 billion in 2024 and is projected to grow at a CAGR of 15.8%.

AI In Retail Market Share By Region

(Reference: precedenceresearch.com)

• By geography, the North America region accounted for more than 40% of revenue share in 2024.
• Furthermore, the market shares of other regions are as follows: Europe (28%), Asia Pacific (23%), Latin America (6%), and the Middle East and Africa (MEA) (3%).

By Company, 2024

United States AI In Retail Statistics

• In 2024, the U.S. market for predictive AI in robotics was valued at USD 1.32 billion. By the end of 2025, it is expected to grow to USD 1.53 billion.
• This sector is experiencing rapid growth, with a forecasted annual growth rate of 15.8% from 2024 to 2034.
• By 2034, the market is expected to reach a value of up to USD 5.72 billion.

AI Use Case Statistics By Retailers

• AI-driven product suggestions account for up to 31% of e-commerce revenues, significantly boosting sales and conversion rates.
• Retailers employing AI-powered chatbots have observed a 10% increase in conversion rates.
• Approximately 91% of consumers are more likely to shop with brands offering personalised recommendations.

(Reference: khrisdigital.com)

• According to a Nvidia survey, 54% of retailers have used AI in more than six different areas of their business.
• AI in Retail Statistics show that only 16% of retailers have adopted AI in one or two areas.
• The rest, 30% of retailers, have implemented AI in three to five areas.

Adoption Of AI In Retail Statistics

• By 2025, 95% of retailers are expected to utilise AI to enhance their supply chains.
• Currently, 73% of retailers are either using or testing AI to enhance customer experiences.
• Global spending on AI in retail is expected to reach USD 19 billion by 2027, growing at a compound annual growth rate (CAGR) of 34%.
• In North America, 45% of the market leads in AI adoption. Many retailers are also investing in AI for customer service, with 48% of them focusing on this area.
• AI-powered chatbots now handle 25% of customer interactions, and 41% of retailers are using them for dynamic pricing.
• By 2030, AI-driven retail revenue is projected to exceed $5 trillion.

By Pricing And Promotions

• AI-powered dynamic pricing can boost sales revenue by up to 12%.
• About 39% of retailers use AI to adjust prices in real-time.
• AI can predict the effectiveness of promotions with 95% accuracy, and 46% of retailers utilise it to refine their discount strategies.
• Statista report analyses also show that pricing with AI has resulted in an average 20% reduction in markdowns, and personalised promotions increase customer engagement by 15%.
• AI also analyses competitor prices 300% faster than manual methods.
• Retailers using AI for pricing optimisation see a 10% increase in gross margins.
• Approximately 42% of retail managers utilise AI for seasonal pricing, and AI tools have reduced price-setting errors by 25%, thereby improving revenue predictability by 18%.

By Reasons

• A report from PR Newswire found that 59% of retail executives plan to utilise generative AI to enhance customer service with reduced human assistance.
• 49% want it to speed up product categorisation and create engaging marketing content.
• AI in Retail Statistics also indicate that around 44% aim to utilise AI to assist creative teams in creating unique images and content for campaigns.
• 40% are interested in using AI for interactive shopper responses.
• Meanwhile, 38% want it to create internal knowledge articles from existing data automatically.

By Business Benefits

(Source: neontri.com)

• Currently, 87% of retailers have used AI in at least one part of their business.
• Looking ahead, 60% of retail companies plan to increase their investment in AI technology.
• By 2025, 80% of retail executives expect their businesses to adopt AI-driven automation to enhance efficiency and improve customer experiences.
• According to the Algolia report, this reduces warehousing costs by 5-10% and cuts administrative costs by 25-40%.
• The Folio3 report reveals that 62% of top retailers say predictive analytics has boosted their understanding of customer behaviour.
• According to a report from Shopify, 44% of retailers are leveraging AI for predictive analytics.
• Meanwhile, 41% use it to analyse and segment customers.

AI In Retail Operations Efficiency Statistics

• In recent years, retailers have reduced operational inefficiencies by 40% by utilising AI.
• According to Gartner reports, AI also helps automate 55% of back-office tasks, resulting in more streamlined processes.
• It has improved logistics efficiency by 32% and boosted warehouse productivity by 25%.
• Delivery times have dropped by 15%, and maintenance costs have been reduced by 20% thanks to AI-powered predictive analytics.
• Retailers using AI are also better at tracking vendor performance, with 50% reporting improvements.
• Approximately 30% of repetitive tasks are now automated, resulting in significant time and effort savings.
• AI has also made task prioritisation more efficient, improving workflow by 28%.
• Based on a research paper by Retail Dive, retailers save an average of USD 1.2 million each year by optimising their processes with AI.
• In-store, AI helps with layout changes that increase foot traffic by 12%, and it makes inventory audits 40% faster.

Future Trends In AI In Retail Statistics

• AI in retail is projected to grow at a 33% annual rate from 2024 to 2030.
• By 2028, 75% of retailers plan to use AI for better supply chain management.
• By 2030, 85% of retail operations are expected to rely on AI.
• Autonomous checkout systems are set to grow by 250% by 2027.
• AI-powered visual search in retail is expected to increase by 35% annually.
• Virtual reality shopping, driven by artificial intelligence, is expected to reach 50 million users by 2026.
• By 2030, AI recommendation engines are expected to influence 40% of online purchases.
• Retailers anticipate that AI will reduce operational costs by 28% by 2030.
• AI will help create hyper-personalised shopping experiences, while AI in loyalty programs could increase engagement by 40%.

Conclusion

AI significantly impacts retail by enabling businesses to understand their customers better and enhance operational efficiency. It is used for tasks such as personalising shopping experiences, improving supply chains, and making more informed business decisions. As AI continues to evolve, it will further transform the retail industry, enabling businesses to become more efficient and deliver improved products and services to their customers.

Retailers who utilise AI effectively will gain a competitive advantage in the market and be better equipped to meet customer needs more intelligently.