Key Influencer in the Generative AI in Retail Market 2025: Impact Of E-Commerce Growth On generative AI Advancements In Retail Driver

What Is the Forecasted Market Size and Growth Rate for the Generative AI in Retail Market?
The retail market size for generative AI has seen a significant increase in recent times. It is projected to expand from $0.79 $ billion in 2024 to $1.11 $ billion in 2025, with a compound annual growth rate (CAGR) of 39.8%. This dramatic surge during the historical period can be credited to factors such as an increase in big data, the expansion of e-commerce, enhancements in computational capabilities, the emergence of mobile commerce, and reductions in the cost of technology.

The retail sector's generative AI market size is projected to experience substantial expansion in the coming years, reaching $4.2 billion in 2029 with a compound annual growth rate (CAGR) of 39.6%. The anticipated growth during the estimated period is ascribed to factors such as bolstering customer personalization, improved management of inventory, dynamic approaches to pricing, enhanced fraud identification, and well-organized customer service. Dominant trends during the projection period include customer service powered by AI, automation of supply chain management, sophisticated AI systems for real-time detection of fraudulent transactions and activities, collaboration with live streaming platforms, and the use of visual search and augmented reality.

What Factors Are Propelling the Expansion of the Generative AI in Retail Market?
Advancements in online shopping are predicted to stimulate the expansion of generative AI in the retail sector. Online shopping is seeing an exponential surge due to the ease, assortment, and availability offered by digital platforms as opposed to conventional retail outlets. By designing tailored product suggestions and enhancing customer interactions with relevant, situational content, AI tools boost online shopping experiences. As presented in a report by the US-based governmental organization, the Census Bureau of the Department of Commerce in May 2024, the revenue from e-commerce sales was around $1,118.7 billion the previous year. In the first quarter of 2024, the total estimated retail sales were worth $1,820.0 billion. The e-commerce sales in this quarter reflected an increase of 8.5% (±1.1%) from the same time in 2023, while the growth in overall retail sales was 2.8% (±0.5%). Hence, the surge in online shopping is contributing to the surge of generative AI in the retail sector.

Get Your Free Sample Now - Explore Exclusive Market Insights:
https://www.thebusinessresearchcompany.com/sample.aspx?id=19464&type=smp

Which Businesses Are at the Forefront of Generative AI in Retail Market Development?
Major companies operating in the generative AI in retail market are Google LLC, Microsoft Corporation, Hitachi Ltd., Tencent Holdings Limited, Amazon Web Services (AWS), Intel Corporation, accenture* plc, International Business Machines (IBM), Oracle Corporation, Fujitsu Limited, Nvidia Corporation, NEC Corporation, Capgemini SE, Baidu Inc., Infosys Limited, Adobe Inc., Wipro Limited, SAS Institute Inc., Tableau Software LLC, C3.AI inc., DataRobot Inc., ClarifAI inc., H2O.AI inc.

What Are the Latest Innovations in the Generative AI in Retail Market?
Leading corporations in the generative AI sector are honing their focus on creating innovative, AI-driven tools for the retail industry that heighten customer personalization, streamline inventory management and refine sales forecasting. These sophisticated tools employ complex AI algorithms to build, refine and automate tasks such as personalized product suggestions, handling of inventory and strategizing marketing actions. They drive efficiency and decision-making in the retail area by examining data and yielding strategic insights. To illustrate, in January 2024, Google LLC, a prestigious technology firm from the U.S., unveiled novel generative AI solutions specifically for retailers in order to augment online shopping experiences and retail operations. These tools aim to enhance online shopping, make retail operations more efficient, and modernize customer service. The newly launched AI tools for the retail sector include a chatting commerce solution incorporating AI-driven virtual representatives for tailored recommendations and organic language engagements, improved search functionality with cutting-edge LLM to better product searches, along with catalog and content enrichment to optimize product listings. Additionally, Google's distributed cloud edge scales AI applications over multiple sites.

How Is the Generative AI in Retail Market Segmented?
The generative AI in retailmarket covered in this report is segmented -

1) By Technology: Variational Autoencoders, Generative Adversarial Networks, Deep Reinforcement Learning, Recurrent Neural Networks, Transformer Networks, Other Technologies
2) By Deployment: Cloud, On-Premise
3) By Application: Product Design And Development, Visual Merchandising, Demand Forecasting, Personalized Marketing, Fraud Detection, Inventory Management, Supply Chain And Logistics, Other Applications
4) By Industry: Fashion And Apparel, Consumer Electronics, Home Decor, Beauty And Cosmetics, Grocery Shops, Online Platforms

Subsegments:
1) By Variational Autoencoders (VAEs): Product Recommendation Systems, Customer Behavior Analysis, Personalized Marketing Campaigns, Image Generation For Products, Inventory Management Solutions
2) By Generative Adversarial Networks (GANs): Synthetic Data Generation, Virtual Try-On Solutions, Image-To-Image Translation For Product Images, Style Transfer For Marketing Content, Fraud Detection In Transactions
3) By Deep Reinforcement Learning: Dynamic Pricing Models, Inventory Optimization, Personalized Customer Experience Systems, Supply Chain Management, Sales Forecasting
4) By Recurrent Neural Networks (RNNs): Time Series Forecasting For Sales, Customer Engagement Prediction, Sentiment Analysis On Customer Feedback, Churn Prediction Models, Recommendation Systems For Repeat Purchases
5) By Transformer Networks: Natural Language Processing For Customer Interactions, Chatbots And Virtual Assistants, Automated Content Generation For Marketing, Customer Sentiment Analysis, Demand Forecasting
6) By Other Technologies: Self-Supervised Learning Techniques, Diffusion Models For Image Generation, Flow-Based Models For Data Generation, Federated Learning For Privacy-Preserving Data Analysis, Hybrid Models Combining Multiple Approaches.

Pre-Book Your Report Now For A Swift Delivery:
https://www.thebusinessresearchcompany.com/report/generative-ai-in-retail-global-market-report

Where Is the Generative AI in Retail Market Growth Most Prominent?
North America was the largest region in the generative AI in retail market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Generative AI in Retail Global Market Report?

- Market Size Analysis: Analyze the Generative AI in Retail Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Generative AI in Retail Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Generative AI in Retail Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Generative AI in Retail Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

Unlock Exclusive Market Insights - Purchase Your Research Report Now!
https://www.thebusinessresearchcompany.com/purchaseoptions.aspx?id=19464

Connect with us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company,
Twitter: https://twitter.com/tbrc_info,
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ.

Contact Us
Europe: +44 207 1930 708,
Asia: +91 88972 63534,
Americas: +1 315 623 0293 or
Email: mailto:info@tbrc.info

Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

This release was published on openPR.