NVIDIA releases report flagging top AI trends as retailers increase their budgets in 2026

NVIDIA’s third annual State of AI in Retail and Consumer Packaged Goods survey report, which the company says garnered hundreds of responses, shows maturation of the technology within the industry as companies move AI projects from pilot to production in all areas.

Highlights include:

• 91% of respondents said their companies are either actively using or assessing AI.

• 90% said they’d build on the success of current projects by increasing their AI budgets in 2026.

• 89% reported AI is helping to increase annual revenue, while 95% said it is helping decrease annual costs.

• 79% said open source models and software were moderately to extremely important to their AI strategy.

• 47% stated their companies are either using or assessing agentic AI in their operations

When asked how AI has improved their business, 54% cited improved employee productivity; 52% said AI has helped to create operational efficiencies; and 41% reported improved customer service.

The retail and CPG industry is piloting AI agents across lines of business.

Overall, 47% of survey respondents are using or assessing agentic AI, with 20% saying AI agents are already active in their organisations and another 21% reporting agents are coming within the next year.

Survey respondents identified three clear goals for agentic AI in retail and CPG:

• Increased process speed and efficiency, per 57% of respondents.

• Enhanced customer experience and personalisation, per 40%.

• Improved decision-making with real-time data, per 40%.

Broadly speaking, agentic AI will be spread across three operational lines: internal operations, employee and customer support, and customer engagement. For instance, in customer engagement, agents go beyond analytics and act on insights in real-time, adjust messages, recommend products and guide purchase decisions based on individual customer contexts.

Supply chain

Retail and CPG have faced intense supply chain challenges this decade, and those challenges are only growing more complex. 64% of respondents in this year’s survey reported increased challenges in the supply chain year over year, such as geopolitical instability, labour constraints, evolving consumer expectations for speed and transparency, and regulatory complexity across global operations.

The industry is turning to AI to streamline operations and solve complexity. The top pressure valve is using AI for supply chain operational efficiency and throughput, according to 51% of respondents. Meeting customer expectations was next on the list at 45%, and solving for traceability and transparency was third, per 38%.

Physical AI is gaining ground in the industry, with 17% of respondents using or evaluating the technology.

According to NVIDIA, the early movers demonstrate that, when integrated thoughtfully, physical AI systems deliver more than task automation, enhancing flexibility and throughput in response to workforce pressures and rising logistical complexity.

RTIH AI in Retail Awards

RTIH proudly presents the first edition of its AI in Retail Awards, sponsored by VenHub Global, 3D Cloud and EdTech Innovation Hub.

This is now open for entries. Deadline for submissions is Friday, 5th December. It’s free to enter and you can do so across multiple categories.

Check out categories and entry forms here.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 29th January. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.