Retailer Spending on AI To Grow Nearly Fourfold By 2022, Juniper Research Finds

A new study from Juniper Research has found that global retailer spending on AI will reach $7.3 billion per year by 2022, up from an estimated $2 billion in 2018, as retailers target new avenues to increase personalization of the customer experience.

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The new research, “AI in Retail: Disruption, Analysis and Opportunities: 2018-2022”, found that retailers will heavily invest in AI tools that allow them to differentiate and improve the services they offer customers. These range from automated marketing platforms that generate tailored, timely offers, to chatbots that provide instant customer service.

Juniper found that spending will be strongest in customer service and sentiment analytics, where AI can be applied to understand customer reaction to the products purchased and the service received. This will prove to be a key tool for retailers seeking to improve their customer experience.

  •  Retailer spending in 2022 will be shared as below
  • Customer Service & Sentiment Analytics: 54 percent
  • AI-based Automated Marketing: 30 percent
  • Demand Forecasting: 16 percent

Juniper predicts that retailers will use AI insights to design and target new product ranges, as well as to create promotional offers. “Retailers are looking to replicate the success of Amazon in making AI a core part of their operations, with retailers increasingly turning to solutions such as AI-optimized pricing and discounting, as well as demand forecasting,” Research author Nick Maynard said.

For more information visit: https://www.juniperresearch.com.

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