Today’s retail industry is fragmented and competitive than ever before. Digital transformation of the retail industry has been going on for years making it advance with AI in Retail Ecosystem. It has increased the speed, efficiency, and accuracy across every branch of the retail business through implementing AI in Retail. The emergence of Artificial Intelligence (AI)

in retail ecosystem has brought in advanced data and predictive analytics systems that are helping companies in making data-driven business decisions. Most retail giants have realized the potential of exploiting new technologies like the Internet of things (IoT) and Artificial Intelligence (AI) (AI) for transforming their retail operations and customer experience. Small players in this industry are yet to apply these technologies, as they are expensive. But giant online and offline stores like Lowes, Walgreens, Sephora, Taco Bell, Walmart, Amazon, Zola, etc., have started investing huge amounts in these technologies.

AI is Transforming the global Retail Ecosystem. Artificial Intelligence (AI) has been environment for a couple of years now. According to AllTheResearch, the global AI revenue will see a massive growth from USD 5,399 million in 2018 to an excess of USD 18,297 million in 2023. Artificial Intelligence (AI) can act as a boon for online and offline retail companies that gather and possess customer data. AI can derive meaningful conclusions from the massive amounts of data and help companies create personalized shopping experiences via highly structured web shops, intelligent in-store bots, and online chatbots.

With the help of the AI technology, virtual racks and trial rooms are built which make it easy for customers to try clothes without creating clothes pile. Customers can instantly see how a dress would look on them and can browse through recommendations based on their preferences and style quotient. While shopping for a new dress or an apparel, trying out different options can get quite frustrating and time consuming. With the help of virtual trial rooms equipped with digital mirrors, customers can try dresses without having to change again and again. By using AI, smart analytics, and natural language processing technology, retail stores can give customers the power to get instant support inside the stores. By placing robots and touch panels, stores can help customers locate an item, get answers to their queries, and find out how a product can make their life easier.

Figure 1: Ecosystem Snapshot: Artificial Intelligence (AI) in Retail Ecosystem

Companies like Amazon have gradually moved into the brick-and-mortar retail space. Amazon has opened Amazon Go, which employs check-out-free technology to allow customers to shop and leave. Customers, with the help of the Amazon Go app, can check into the store and thereafter, the entire shopping experience is automated. Sensors track which objects customers pick up and put in their basket, and then customers’ Amazon accounts are automatically charged after exiting the store. Domino’s has its prototype robot that delivers food and drinks at the appropriate temperature with help of DRU’s sensors, which navigate the best travel path for delivery. Increased efficiency in operations means increased profits for a company. From a reduction in production and shipping costs, to providing a more personalized customer experience, retailers can benefit a lot from AI. It is predicted that Artificial Intelligence (AI) will replace 7% of jobs in the U.S. by 2025.

Figure 2: Artificial Intelligence (AI): Segmentation of AI in Retail Ecosystem:

Components Offering Application Technology Deployment Micro Processors Solution Supply chain & logistics Predictive Maintenance/Self Diagnostics Cloud Memory Services Product Optimization Machine learning On-Premise Storage In-Store Navigation Deep learning FPGA Payment and Pricing Analytics NLP GPU Inventory Management Computer Vision Camera Customer Relationship Management (CRM) Predictive Analytics Sensors Others Connectivity IC Others

Global AI in Retail Ecosystem:

Globally, Artificial Intelligence (AI) in retail is growing at a fast pace and so, by 2030, one-third of workers in the U.S. will need to switch occupations due to increased use of robotics and automation. The global spending on Artificial Intelligence (AI) (AI) is expected to reach $35.8 billion by 2020, a 44% increase over 2018. By 2022, spending on AI systems is expected to more than double, with a compound annual growth rate of 38% from 2018 to 2022. The U.S. will account for nearly two-thirds of all AI spending in 2019. Retail is leading the global spend on AI systems this year, with the category projected to invest $5.9 billion on solutions like automated customer service agents, shopping advisers, and product recommendation platforms.

Banking will invest $5.6 billion in AI solutions, including automated threat intelligence and prevention systems, fraud analysis, and investigation. Alibaba, the China-based international e-commerce giant has set up cashier-free stores, with the first one in Hangzhou. This was the Tac Cafe. Customers can dine and shop here, order what they want using interactive screens, and exit the store without the need to pause at the checkout counter. Alibaba also opened checkout-free grocery stores in 2016, called Hema supermarket. This was their flagship venture into their vision for New Retail.

Figure 3 – Market Statistics Glimpse: AI in Retail Ecosystem:

There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.

The major players operating in the global AI in Retail Ecosystem are as follows:

Company Ecosystem Positioning Total Revenue Industry Region Lowes Service Provider $68.6 Billion Retail Global Walgreens Service Provider $131 Billion Retail Global Sephora Solution Provider $7.5 Billion Retail Global Taco Bell Solution Provider $2 Billion Retail Global Walmart Service Provider $514.4Billion Retail Global

Very few markets have the interconnectivity with other markets like AI. Our Interconnectivity module focuses on the key nodes of heterogenous markets in detail. Data analytics, Cloud Logistics, and Drones markets are some of our key researched markets.

Figure 4 – Artificial Intelligence (AI) in Retail Major Interconnectivities Ecosystem

A Glance on the Global AI in Retail Ecosystem Trends:

Trends Components Offering Application Technology Deployment End-User Impact AI-enabled RPA in the transportation & logistics industry allows the vendors to reduce expensive manual functions through automatic acquisition, integration and delivery of data across the supply chain . AI enabled RPA is also used to automate the scheduling process of shipments Service Supply Chain Planning RPA (Transportation & logistics) Others 050% Machine learning makes it possible to discover patterns in supply chain data by relying on algorithms that quickly pinpoint the most influential factors to a supply networks’ success, while constantly learning in the process. Service ML 0.32% Companies are extending the life of key supply chain assets including machinery, engines, transportation and warehouse equipment by finding new pattern in the usage of data collected via IoT sensors Service (Transportation & logistics) Others 0.21% Trend 4 XX xx xx XX Trend 5 XX xx XX



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