A new study from Juniper Research has found that global retailer spending on AI will reach USD 7.3 billion per annum by 2022.
The figure represents an almost fourfold USD 2 billion in 2018, as retailers target new avenues to increase personalisation of the customer experience.
The research, AI in Retail: Disruption, Analysis and Opportunities: 2018-2022, found a growing interest among retailers in AI tools that will allow them to differentiate and improve their customer services. Retailers plan to invest in automated marketing platforms and chatbos for instant customer service.
Most retailers hope to leverage AI technology for analysing customer behaviour along the customer journey. Data gathered along the journey can be analysed and used to create personalised offers.
Retailer spending in 2022 will be shared as below:
Customer Service & Sentiment Analytics - 54%
AI-based Automated Marketing – 30%
Demand Forecasting - 16%
Juniper predicted that retailers will use AI insights to design and target new product ranges, as well as to create promotional offers.