Retailers set to place big bets on AI tech
Global spending by retailers on AI services will reach $12 billion by 2023, up from an estimated $3.6 billion in 2019, according to Juniper Research. Over 325,000 retailers will adopt AI technology over the period, it says.
The use of machine learning in demand forecasting will prove to be a key market for AI vendors, with associated service revenues reaching $3 billion by 2023, up from $760 million in 2019. Juniper Research’s Nick Maynard says: “With the rise of collect-in-store and one-off events such as Black Friday, understanding demand and supply chains is more crucial than ever with AI playing the central role.”
Meanwhile, smart checkouts, largely powered by AI technologies such as computer vision, will have a a major role to play in the convenience area, leading to annual transaction volumes of over 1.4 billion by 2023, compared with just 42 million in 2019. While Amazon is currently highly visible with its Go model, China will be the biggest driver of future growth.