TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research & Innovation
  • Security
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Retail

Retail

AI-enabled retail software revenue to rise nearly eightfold by 2025, as brick-and-mortar stores strive to keep pace with online rivals

Via IHS Technology Press Releases

Apr 2, 2020

Market set to soar to $9.8 billion by 2025

LONDON (April 2, 2020) — With the global retail industry facing intensifying headwinds from online rivals and the virtual elimination of footfall traffic in the wake of COVID-19, stores increasingly are turning to artificial intelligence (AI) software to enhance their efficiency, helping drive nearly an eightfold rise in sales of such software by 2025.

Worldwide spending on AI software for retail uses is forecasted to expand to $9.8 billion in 2025, up from $1.3 billion in 2019, according to the Artificial Intelligence for Retail Applications report from Omdia. Globally, retailers will invest $37.3 billion on AI-driven solutions from 2019 through 2025.

“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,” said Mark Beccue, principal analyst, at Omdia. “As a result, revenue and margins for brick-and-mortar retailers are under pressure as these more efficient and scalable online disruptors draw more buyers and sales with sharper pricing, personalized customer journeys and finely tuned product assortments. In response to this challenge, pioneering retailers are adopting AI-driven software solutions to improve the efficiency of customer service and consumer targeting.”

AI allows retailers to cash in on consumer opportunities

Retailers lose hundreds of billions of dollars every year through missed opportunities and excess costs. Increasingly, a broad range of solutions providers and pioneering retailers are launching AI-driven software with capabilities that enable retailers to identify and capitalize on such opportunities, including:

  • Leveraging a wealth of contextual personal data and predictive analytics to serve up personalized recommendations, promotions and marketing.
  • Improving search functionality through sharper meta-tagging and visual search.
  • Creating digital maps of in-store inventory to manage out-of-stock inventory, correct pricing, and label and promotion misplacements.
  • Applying predictive analytics and data science to significantly improve price optimization and demand forecasting/inventory management.

Among the different types of AI-enabled software, supply chain & inventory management is forecast to represent the largest retail use case spending between 2019 and 2025. Other major areas include e-commerce virtual digital assistants, video surveillance, image recognition and stockout management and promotion compliance.

Covid-19 and market drivers for AI retail software

Several key market drivers are spurring the growth of AI use cases in retail.

One major factor is brick-and-mortar retailers’ desire to perform more like pure-play online retailers. Furthermore, retailers that offer both physical and online shopping want to harmonize customer experience among the channels.

Retailers also would like to reduce the cost and improve the effectiveness of inventory management tasks such as demand forecasting, supply chain logistics and in-store stock assortment. Additionally, these retailers would like to personalize product recommendations, pricing, promotions, advertising, and customer service.

With retail stores across the globe opting to temporarily or indefinitely shut their doors to prevent the spread of the novel coronavirus and as they adjust to related supply chain disruptions – AI retail software becomes ever more important. Improving operational flexibility, in-store and for retailer online efforts, being particularly critical with the expectation of production delays and decreased sales due to the virus.

Related Topics
  • AI & ML,
  • Global,
  • IHS Markit,
  • Retail,
  • Telecoms Vendors & OEMs,
  • Tracker

More Like This

Digital Platforms and Services

Spatial tap: Turning sound quality up to 11

Jan 4, 2023

The Great Telco Debate 2022

Executive Interview: Phil Jordan, Group CIO of Sainsbury's

Dec 9, 2022

Access Evolution

What’s up with… Eutelsat and OneWeb, BT, 5G in India

Jul 26, 2022

Digital Platforms and Services

TIM and Sparkle: agreement with Benetton Group, faster and more secure connections in sites worldwide

Jun 10, 2022

Digital Platforms and Services

The online tail now wagging the retail dog as e-commerce surges globally

Apr 4, 2022

This content extract was originally sourced from an external website (IHS Technology Press Releases) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

0:46

The Cloud Native Telco Summit returns this September!

8:32

Azita Arvani on Being a Female Leader at Rakuten Symphony

16:19

AT&T Amy Zwarico on securing telco applications in the public cloud

1:44

Join us for the greatest industry debate of the year!

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us
  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2023. All rights reserved. All brands and products are the trademarks of their respective holder(s).