[Research] AI in retail industry to reach $96.13b by 2030, fueled by personalization and smart store automation

The integration of Artificial Intelligence (AI) is set to dramatically reshape the global retail landscape, with the market expected to experience exponential growth this decade. A new report by Mordor Intelligence forecasts that the AI in Retail Market will jump from $14.24 billion in 2025 to a staggering $96.13 billion by 2030, reflecting a phenomenal Compound Annual Growth Rate (CAGR) of 46.54%.

This explosive expansion highlights the accelerating reliance on AI across all retail operations - from enhancing customer experience and personalized marketing to optimizing supply chain and inventory management. As retailers strive to deliver seamless omnichannel experiences, advanced AI tools like computer vision, natural language processing (NLP), and machine learning are proving indispensable for interacting with consumers, predicting demand, and managing complex logistics.

The industry is rapidly shifting toward intelligent automation, with brands increasingly leveraging AI-powered chatbots, sophisticated recommendation systems, and precise demand forecasting models to bolster customer loyalty and operational efficiency. This transformation is further fueled by significant investments in data analytics, cloud infrastructure, and edge computing, enabling smarter decision-making and greater business agility in a highly competitive sector.

Among the key players driving this market are global giants such as Google, IBM, Microsoft, Amazon Web Services (AWS), NVIDIA, and Salesforce, alongside specialized AI retail firms like Daisy Intelligence Corporation and SymphonyAI LLC.

Technology innovations reshaping the store and supply chain

The report highlights two key technological trends driving this massive growth:

Advances in Frictionless Vision-Based Checkout

Barcode-free checkout technology is transitioning from pilot projects to widespread deployment. These systems combine vision recognition with payment processing to effectively eliminate the delays associated with traditional cashier lines. While the initial investment remains substantial, the return on investment is validated by faster customer flow and deeper, granular insights into real-time shopping behaviors. Privacy is being addressed as some systems process images locally to comply with strict regulations while maintaining high response speeds.

Increasing Affordability and Access to Cloud AI Solutions

The financial barrier to entry for AI is declining rapidly, thanks to advancements in chip technology and massive investment from leading cloud providers like Amazon and Microsoft. These tech giants offer ready-to-use AI tools, enabling retailers to deploy sophisticated solutions faster and more efficiently. This collaboration helps businesses overcome talent shortages by providing access to turnkey AI systems, putting significant pressure on organizations still relying on outdated data centers.

Market segmentation and key growth regions

The report dissects the market across multiple dimensions, underscoring the broad application of AI:

Deployment: Cloud and On-premise
Application: Inventory and Demand Forecasting, Supply Chain and Logistics, Payment & Pricing Analytics, Customer Relationship Management (CRM), Fraud Prevention, and In-Store Navigation.
Technology: Machine Learning, Predictive Analytics, Natural Language Processing (NLP), Generative AI and Large Language Models (LLMs), Computer Vision, and Chatbots.
Channel: Omnichannel, Brick-and-Mortar, and Pure-play Online Retailers

Geographically, North America currently leads the market, driven by major investments in automation and AI-based customer engagement platforms, particularly within the United States. Europe is also seeing strong adoption, supported by broad retail digitalization initiatives.

However, the Asia-Pacific region is projected to record the fastest growth globally. This rapid acceleration is fueled by the aggressive expansion of e-commerce ecosystems in key markets like China, India, and Japan.

www.mordorintelligence.com

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