× Industry Reports Services Press Release Contact us About us

North America Artificial Intelligence (AI) in Retail Market Forecast 2027 By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Component (Solution [Chatbot, Customer Behavior Tracking, Customer Relationship Management (CRM), Inventory Management, Price Optimization, Recommendation Engine, Supply Chain Management, Visual Search], Service [Professional Service, Managed Service]), By Application (Automated Merchandising, Programmatic Advertising, Market Forecasting, In-store AI & Location Optimization, Data Science), Research Report, Country Outlook (U.S., Canada), COVID-19 Impact Statistics, Price Trends, Historic Data, Growth Prospects, Competitive Industry Share
Published Date: November 2021 | Publisher: Graphical Research Report ID: GR2001 | Delivery : PDF  Request Free Sample

North America AI in Retail Market size surpassed USD 1 billion in 2020 and is estimated to witness over 10% CAGR from 2021 to 2027. The increasing awareness of new & advanced technologies, such as AI, data analytics, etc., and government initiatives toward digitalization are driving the regional market growth.

North America Artificial Intelligence (AI) in Retail Market Size By Application

Get more details on this report - Request Free Sample PDF

The market demand can be attributed to the growing adoption of e-commerce platforms by retailers. Retailers are increasingly using e-commerce platforms for inventory management, supply chain management, improved customer engagement, innovative advertising ideas, smart chatbots, and others. The COVID-19 pandemic has accelerated the trend of online shopping across the region as consumers have started purchasing food, grocery, pharmacy products from online platforms. AI has given ample opportunities to retailers to transform their businesses digitally.

North America Market, By Component

Recommendation engine solution segment held a market share of over 25% in 2020, due to the growing adoption of advanced technologies, such as machine learning, AI, data analytics, etc., across the retail sector and a growing need to enhance the customer experience. Retailers increasingly using recommendation engines to show filtered suggestions as per the buying behavior of the customers.

Recommendation engines use machine learning algorithms to suggest the most relevant products to the customer. It helps retailers in providing an improved customer experience through smart solutions. Various companies, such as Amazon, use recommendation engines to present filtered product recommendations. Similarly, Netflix also uses recommendation engines to show filtered movie suggestions to the users.

North America Market, By Application

The automated merchandising application accounted for 30% artificial intelligence in retail market share in 2020, owing to the growing adoption of e-commerce shopping platforms. Online retailers generally use automated merchandising applications to predict the purchasing habits of the consumers and accordingly offer more shopping responses to them.

Automated merchandising uses predictive analytics to make assumptions about the customer’s behavior, according to the previously purchased products. Retailers widely use this technique to increase sales by showing relevant product suggestions to the customers. There are several benefits of automated merchandising such as improved productivity & efficiency, eliminating manual errors, better goal optimization, and enhanced marketing strategies.

North America Market, By Technology

Natural language processing (NLP) technology segment is expected to grow at a CAGR of 35% during the forecast period, led by the growing adoption of various software & tools by retailers to understand purchasing habits, behavior, and personality of the consumers.

Retailers widely use Natural Language Processing (NLP) software to automatically translate the native language of the customer. This technology is generally used to understand the culture from where the customer belongs so that retailers can offer more customized and personalized services & solutions. NLP performs various tasks such as speech recognition, part of speech tagging, sentiment analysis, and natural language generation.

North America Market, By Country

The U.S. artificial intelligence (AI) in retail market is poised to generate a revenue of more than USD 10 billion by 2027, impelled by growing investments in AI technology and increasing adoption of AI technology by various SMEs.

The prominent industry participants across the country are actively focusing on developing AI-enabled digital platforms for different end-user industries. For instance, in April 2020, according to a report published by the National Venture Capital Association, 285 AI-based companies in the U.S. raised USD 6.9 billion in the first quarter of 2020. Growing investments in AI technology are providing significant growth opportunities to the market.

Competitive Industry Landscape

Some of the leading players operating in the market are Amazon Web Services, BloomReach Inc., Google LLC, IBM Corporation, Intel Corporation, Lexalytics Inc., Microsoft Corporation, Nvidia Corporation, Oracle Corporation, RetailNext Inc. Salesforce.com, Inc. and SAP SE.

Companies are focusing on expanding their product capabilities to offer advanced & integrated AI-based solutions to the customers. For instance, in June 2020, Jesta I.S. Inc. expanded its state-of-the-art vision AI-based CRM product that offers omnichannel retailers a deep visual insight on customer engagement. The vision analytics solution provides agile & actionable insights on customers across all channels.

Frequently Asked Question(FAQ) :

The market size for AI in retail in North America was hit USD 1 billion in 2020 and is likely to grow at more than 10% CAGR up to 2027 led by the increasing adoption of AI, data analytics, and other advanced technologies.
Recommendation engine segment held over 25% revenue share of North America market during 2020 as it allows retailers to suggest the most relevant products to customers based on their buying behavior and improve customer experience.
The automated merchandising application segment captured more than 30% share of North America market in 2020 owing to the increasing adoption of ecommerce platforms.
The market size for AI in retail in U.S. could reach USD 10 billion valuation by 2027 led by increasing investments in AI and growing AI adoption among various SMEs.
Amazon Web Services, Google LLC, BloomReach Inc., IBM Corporation, Intel Corporation, Lexalytics Inc., Microsoft Corporation, Nvidia Corporation, Oracle Corporation, RetailNext Inc. Salesforce.com, Inc. and SAP SE are some of the prominent names in the North America market.

Premium Report

Have questions?
  • Inquire Before Buying
  • Why Choose us?

    • on-time delivery On-Time Delivery

      We commit to on-time delivery of reports to keep you ahead.

    • assured quality Assured Quility

      With a wide network of industry experts and trained in-house analysts, we assure best service quality.

    • Custom Research Service

      We offer research services to meet specific client requirements and provide them with actionable insights on target markets.

    • payment security Payment Security

      Our safe payment gateway gives you full control of your personal data, at all times.

    Connect with our sales team

     1-800-986-6917

     [email protected]