Study: Retailer spending on AI will reach…
Retail interest in artificial intelligence (AI) is growing, according to a new study from Juniper Research.
According to the study, “AI in Retail: Segment Analysis, Vendor Positioning & Market Forecasts 2019-2023,” global spending by retailers on AI services will reach $12 billion by 2023, up from an estimated $3.6 billion in 2019. Juniper expects over 325,000 retailers to adopt AI technology over the period.
Juniper forecasts that retailers will face an AI adoption race, where AI-equipped retailers, which have adopted systems as early movers, will displace slower moving retailers, offering superior service at optimized price points.
More specifically, the study indicates retailers’ use of machine learning in demand forecasting will prove to be a key market for AI vendors, with associated service revenues reaching $3 billion by 2023, up from $760 million in 2019. According to Juniper, demand forecasting will be essential to providing an effective omnichannel experience and driving higher margins, resulting in the number of retailers using AI-enabled demand forecasting more than tripling by 2023.
The research also found that smart checkouts, largely powered by AI technologies such as computer vision, will have a strong future in the convenience area. This is expected to leading to annual smart checkout transaction volumes of over 1.4 billion by 2023, compared with just 42 million in 2019.
While Amazon is currently highly visible with its Go model, Juniper predicts China will be the biggest driver of future smart checkout growth. This reflects the rapidly growing Chinese market, as well as backlash Amazon has had due to its cashless model.
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