The visual search solution segment in AI in the retail market is predicted to grow at annually at over 45% per year during the same period.
According to a new report by Global Market Insights, AI in the retail market is predicted to be worth over $8 billion by 2024. The growth is being fed by the rapid increase in IT investments worldwide, which in turn is being powered by the growing adoption of AI, machine learning, and advanced analytics.
Experts are confident that AI will be behind the next phase of digital disruption. Investments are heavily dominated by major players like Google, Microsoft, IBM, AWS, and Baidu. To date the investment has reached $30 billion, 90% going to R&D and the remainder on acquiring other companies to increase corporate portfolios. Venture capital and private equality financing are also showing growth, totaling over $6 billion.
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The advancement of machine learning and deep learning is a major factor for AI in the retail market. Machine learning in the sector is expected to grow over 42% CAGR. Retailers are popularizing the technology to provide improved customer service and personalized shopping experiences.
The report also found that the visual search segment of AI in retail marketing is predicted to grow at a CAGR of 45%/ This is driven by the extreme popularity of online shopping. Image recognition technology is particularly in high demand, as is personalized, targeted advertising.
China is leading the way in A investments and is responsible for 17% of them worldwide. The major players in this market are AWS, BloomReach, Microsoft, Salesforce, RetailNext, Google, Intel, CognitiveScale, Lexalytcs, NEXT, Ibenta Technologies, Interactions, Oracle, Nvidia, SAP, Visenze, and Baidu. All of these players will be increasing their investment in AI, either through R&D or mergers and acquisitions.