Artificial intelligence is having an impact across every industry, and retail is no exception. Across the value chain, AI is making roles more efficient and effective - from using real-time video footage to analyze foot traffic and flow to analyzing social media images at scale to recognize trends as they’re starting. In this post, read up on 10 new stats around AI’s impact on retail to get a better understanding of how this technology is impacting the industry.
Retail and consumer products executives project that intelligent automation capabilities could help increase annual revenue growth by up to 10%. (source)
Retailers can save as much as $340 billion by taking AI to scale across the value chain, including operations, supply chain, planning, product development, distribution, and more. (source)
Global annual spending on AI by retailers is estimated to reach $7.3 billion by 2022. (source)
Retailers are accelerating AI deployment. Over a quarter (28%) deployed AI in 2018, when in 2016 it was a minority – just 4%. (source)
By 2020, artificial intelligence will be used by at least 60% of organizations for digital commerce. (source)
Currently, the largest retailers are deploying AI at the highest rates. For large retailers, with revenue greater than $10 billion, 24% invest between 5% and 10% of their IT spend in AI. For retailers with revenue below $10 billion a year, just 7% spend those levels. (source)
85% of retail and 79% of consumer products companies plan to be using intelligent automation for supply chain planning by 2021. (source)
79% of retail and consumer products companies expect to be using intelligent automation for customer intelligence by 2021. (source)
By 2021, 15% of all customer service interactions will be completely handled by AI, an increase of 400% from 2017. (source)
Through 2020, AI use cases supporting CX are forecast to deliver the most business value, followed by new revenue growth thereafter. (source)
What's clear from these stats is that understanding and implementing AI has become vital for retailers. Whether you're from a large retailer or an independent store, AI is going to play a key role across almost every sector of the organization - from improving personalization to managing stock and more.