European AI market predicted to exceed $5bn by 2027
According to a recent study from market research firm Graphical Research, the Europe artificial intelligence in retail market size is poised to expand at substantial CAGR during the forecast period.
Europe AI in retail industry is on a growth path and will achieve significant gains over 2021-2027. AI in retail stores assists retailers in improving demand projections, price decisions, and product positioning. As a result, customers are introduced to the right products, in the right location, at the right time.
According to forecasts, Europe artificial intelligence (AI) in retail market size would exceed $5bn by 2027. Some prominent companies that are adopting AI in retail across Europe include Baidu, Amazon Web Services, BloomReach, Google, CognitiveScale, IBM Corporation, Microsoft Corporation, Oracle Corporation, Nvidia Corporation, RetailNext, SAP SE, and Salesforce.com.
Automated merchandising systems aid businesses in studying customer’s purchase behaviour and patterns, making relevant recommendations to enhance sales. They turn the store into an intelligent retail space, which is capable of creating a personalised shopping experience for each visitor at scale. To determine what a client would be interested in, the system captures all necessary information from the customer during the online purchase process, such as demographic data, social media usage, and purchasing habits. By utilising these smart algorithms, they can enhance the buying experience and provide tailored assistance both online and in-store.
Europe artificial intelligence in retail market share from the solution segment will expand with a CAGR of roughly 30% through 2027. There is a widespread use of analytics solutions by online retailers in order to improve their client base and provide a better consumer experience. Taking customer service to the next level, several shops are leveraging AI to give consumers with unique, tailored experiences.
Retailers are increasingly utilising technology to better understand customer behaviour and the need to meet demand. Retailers and e-commerce organisations are utilising a variety of AI-based technologies, such as chatbots, customer relationship management, and data analytics and visualisation systems, to extract actionable insights. By mining insights from marketplace, customer, and competition data, AI business intelligence systems foresee industry movements and make proactive adjustments to a company's marketing, merchandising, and business strategies.
Europe artificial intelligence in retail market share from visual search and visual listen solution is expected to grow with a CAGR of more than 40% by 2027. Visual search has proved advantageous just a few years into the technology's broader growth. Pinterest, for example, receives around 600 million visual searches on its Pinterest Lens tool each month, according to pymnts.com.
Most customers, particularly millennials and Generation Z, are accustomed to shopping online. Because digital browsing cannot replicate physical stores, one of the early visual search tools, virtual try-ons, has made its way into e-commerce. Customers may use such technologies to view how cosmetics or clothing might look on them, just by a few clicks on their smart devices. The growing popularity of online merchants and customers is likely to increase the technology uptake in the future.
Because of increased investments in AI technology, Spain AI in retail industry size will account for more than $500m by 2027. The government is focusing on strategic measures to entice international investments in IT. For example, the Spanish government declared in December 2020 that it will invest $720m on AI development between 2021 and 2023. The investment also assists the country in gaining a competitive position on a global scale.