May 10, 2020
Plenty of use cases are driving the artificial intelligence (AI) market within retail, such as reducing cost and improving the effectiveness of inventory management. The ongoing Covid-19 pandemic has seen AI retail software becoming ‘ever more important’. Analyst firm Omdia presented a report called Artificial Intelligence for Retail Applications. Omdia notes that improving operational flexibility, in-store and for retailer on-line efforts, are parti…cularly critical with the expectation of production delays and decreased sales due to the virus. The expenditure on AI software for retail uses across the world was $1.9 billion in 2019. Omdia predicts that it will grow to $9.8 billion in 2025 (nearly 5 times). Total investment in AI-driven solutions is estimated $37.3 billion from 2019 through 2025 globally. Supply chain and inventory management is set to be the largest retail use case for spending between now and 2025, the report added. Mark Beccue, principal analyst at Omdia, said: “Giant online sellers like Amazon, Alibaba and Walmart — along with hundreds of hungry startups — have built lean, analytics-driven organizations that leverage their scale and efficiency to drive revenue and reduce costs.” “Pioneering retailers are adopting AI-driven software solutions to improve the efficiency of customer service and consumer targeting,” he added.