When it comes to the use of artificial intelligence (AI) in the retail industry, as the old saying goes, you ain’t seen nothing yet. Spending on such technology is poised to undergo a quantum leap in use by the end of this decade. Putting a dollar figure on that expected growth is a new report from Mordor Intelligence, which predicts retailer investment in AI will grow from $14.24 billion in 2025 to $96.13 billion by 2030, which translates into a whopping 46.54% annually for the period.
“This exponential growth highlights the accelerating adoption of AI technologies across retail operations, from customer engagement and personalized marketing to supply chain and inventory optimization,” the report notes. “As retailers aim to deliver seamless omnichannel experiences, advanced AI tools such as computer vision, natural language processing, and machine learning are revolutionizing how brands interact with consumers, manage logistics, and predict demand.
The AI in retail industry is also witnessing a strong shift toward intelligent automation, the report notes, with retailers increasingly leveraging AI-powered chatbots, recommendation systems and demand-forecasting models to boost customer loyalty and operational efficiency.
Here’s more on two major trends the report forecasts:
- Ongoing improvements in vision-based checkout: Barcode-free checkout technology has become remarkably accurate, enabling retailers to expand from test phases to widespread use. By combining vision recognition with payment systems, these solutions help eliminate delays caused by traditional cashier lines. Some systems process images locally to meet privacy regulations while maintaining fast response times. Although initial costs are significant, the return on investment is driven by faster customer flow and deeper insights into shopping behaviors.
- Lower-cost cloud AI solutions: The cost of running AI processes is falling due to advancements in chip technology and significant investments by leading cloud providers. Companies like Amazon and Microsoft offer ready-to-use AI tools that help retailers deploy solutions faster and more efficiently. Collaborations between retailers and tech firms enable businesses to overcome talent shortages by adopting turnkey AI systems. This shift is putting pressure on organizations still relying on outdated data centers.
Click here for more from the Mordor report.