Synthetic intelligence is quickly turning into the cornerstone of innovation within the retail and shopper packaged items (CPG) industries.
Ahead-thinking corporations are utilizing AI to reimagine their total enterprise fashions, from in-store experiences to omnichannel digital platforms, together with ecommerce, cell and social channels. This technological wave is concurrently remodeling promoting and advertising, buyer engagement and provide chain operations. By harnessing AI, retailers and CPG manufacturers usually are not simply adapting to vary — they’re actively shaping the way forward for commerce.
NVIDIA’s second annual “State of AI in Retail and CPG” survey supplies insights into the adoption, funding and affect of AI, together with generative AI; the highest use circumstances and challenges; and a particular part this 12 months analyzing the usage of AI within the provide chain. It’s an in-depth take a look at the present ecosystem of AI in retail and CPG, and the way it’s remodeling the industries.
Drawn from a whole bunch of responses from trade professionals, key highlights of the survey present:
- 89% of respondents stated they’re both actively utilizing AI of their operations or assessing AI initiatives, together with trials and pilots (up from 82% in 2023)
- 87% stated AI had a optimistic affect on rising annual income
- 94% stated AI has helped cut back annual operational prices
- 97% stated spending on AI would enhance within the subsequent fiscal 12 months
Generative AI in Retail Takes Middle Stage
Generative AI has discovered a powerful foothold in retail and CPG, with over 80% of corporations both utilizing or piloting initiatives. Firms are harnessing the know-how, particularly for content material technology in advertising and promoting, in addition to buyer evaluation and analytics.
In line with final 12 months’s survey, over 50% of outlets consider that generative AI is a strategic know-how that might be a differentiator out there.
The highest use circumstances for generative AI in retail embody:
- Content material technology for advertising (60%)
- Predictive analytics (44%)
- Personalised advertising and promoting (42%)
- Buyer evaluation and segmentation (41%)
- Digital purchasing assistants or copilots (40%)
Whereas some issues about generative AI exist, particularly round knowledge privateness, safety and implementation prices, these issues haven’t dampened retailers’ enthusiasm, with 93% of respondents saying they nonetheless plan to extend generative AI funding subsequent 12 months.
AI Throughout the Retail Panorama
AI use circumstances have proliferated throughout practically each line of enterprise in retail, with over 50% of outlets utilizing AI in additional than six completely different use circumstances all through their operations.
In bodily shops, the highest three use circumstances are stock administration, analytics and insights, and adaptive promoting. For digital retail, they’re advertising and promoting content material creation, and hyperpersonalized suggestions. And within the again workplace, the highest use circumstances are buyer evaluation and predictive analytics.
AI has made a big affect in retail and CPG, with improved insights and decision-making (43%) and enhanced worker productiveness (42%) being listed as high advantages amongst survey respondents.
The most typical AI problem retailers confronted in 2024 was a scarcity of simple to know and explainable AI instruments, underscoring a larger want for software program and options — particularly round generative AI and AI brokers — to enter the market to make it simpler for corporations to make use of AI options and perceive how they work.
AI within the Provide Chain
Managing the provision chain has all the time been a problem for retail and CPG corporations, however it’s grow to be more and more tough during the last a number of years attributable to tumultuous world occasions and shifting shopper preferences. Firms are feeling the strain, with 59% of respondents saying that their provide chain challenges have grown within the final 12 months.
More and more, corporations are turning to AI to assist handle these challenges, and the affect of those AI options is beginning to present up in outcomes.
- 58% stated AI helps to enhance operational effectivity and throughput.
- 45% are utilizing AI to scale back provide chain prices.
- 42% are using AI to satisfy shifting buyer expectations.
Funding in AI for provide chain administration is ready to develop, with 82% of corporations planning to extend spending within the subsequent fiscal 12 months.
Because the retail and CPG industries proceed to embrace the facility of AI, the findings from the most recent survey underscore a pivotal shift in how companies function in a fancy new panorama. Main corporations are harnessing superior applied sciences — similar to AI brokers and bodily AI — to boost effectivity and drive income, in addition to to place themselves as leaders in innovation, serving to redefine the way forward for retail and CPG.
Obtain the “State of AI in Retail and CPG: 2025 Traits” report for in-depth outcomes and insights.
Discover NVIDIA’s AI options and enterprise-level platforms for retail.