
The retail industry is in the midst of a major technology transformation, fueled by the rise in AI.
With the highest potential for AI and analytics among all industries, the retail and consumer packaged goods (CPG) sectors are poised to harness the power of AI to enhance operational efficiency, elevate customer and employee experiences and drive growth. As such, it's crucial to stay ahead of the curve by anticipating potential trends that aim to change the retail game.
NVIDIA's first annual State of AI in Retail and CPG survey - conducted among industry professionals - provides insights into the state of AI adoption in retail, its impact on revenue and costs and the emerging trends shaping the future of the industry.
With more than 400 respondents globally, including C-suite leaders and other executives, general managers and individual contributors, the survey consisted of questions covering a range of AI topics, top use cases, biggest challenges, infrastructure investment initiatives and deployment models.
Improving Operational Efficiencies Is a Top Priority To stay ahead in a highly dynamic market, retailers are actively considering how AI can help them meet evolving customer preferences, address labor shortages and drive sustainability efforts. AI has already proved to be a game-changer for retailers, with 69% reporting an increase in annual revenue attributed to AI adoption. Additionally, 72% of retailers using AI experienced a decrease in operating costs.
AI is enhancing operational efficiency, elevating customer experiences and driving growth. The top five current AI use cases were as follows:
Store analytics and insights
Personalized customer recommendations
Adaptive advertising, promotions and pricing
Stockout and inventory management
Conversational AI
While retailers are actively implementing AI, there are still areas they plan on exploring. These include further investing in AI infrastructure to overcome challenges related to inadequate technology and lack of AI talent, exploring the potential of the metaverse for consumer engagement and operational efficiency while also leveraging AI for brick-and-mortar stores to provide convenience and personalized customer experiences, transforming customer experiences using generative AI, and ensuring data privacy and protection in generative AI adoption.
Generative AI Is Changing Customer Experiences Generative AI prominently emerged in several of the top AI use cases for retail. The use cases ranged from multimodal shopping advisors for personalized product recommendations; adaptive advertising, promotions and pricing; product tagging and cataloging; identification of similar and complementary products; as well as deployment of brand avatars for automated customer service.
Retailers recognized the transformative potential of generative AI, with 86% expressing a desire to use it to enhance customer experiences. Respondents acknowledged that incorporating AI into business practices and solutions could revolutionize customer engagement, optimize marketing strategies and streamline operational processes.
Staying Ahead With an Omnichannel Approach To stay competitive, the survey indicated the importance of an omnichannel approach that integrates numerous online and offline channels to provide consumers with a consistent experience.
The results showed that ecommerce was the most used channel, with 79% of retailers actively participating. Mobile applications also gained traction, with over half of retailers using them to bridge the gap between digital and physical shopping experiences.
Despite the rise in digital shopping, 30% of respondents say physical stores have the biggest revenue growth opportunity (ranked second behind ecommerce) and remain the channel with the most AI use cases for retailers. Given the emphasis on intelligent stores and their central role in the omnichannel experience, use cases such as store analytics and loss prevention will continue to be critical investments.
Investing in AI Infrastructure While AI adoption is still in its early stages, retailers are committed to increasing their AI infrastructure investments. Over 60% of respondents plan to boost their AI investments in the next 18 months. This commitment reflects the industry's recognition of the technology's potential to enhance operational efficiency, reduce costs, elevate customer experiences and drive growth.
Download the State of AI in Retail and CPG: 2024 Trends report for in-depth results and insights.
Explore NVIDIA's AI solutions and enterprise-level AI platforms for retail at www.nvidia.com/retail.
Most recent headlines
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
18/10/2025
New England Sports Network (NESN) has chosen Harmonic, working with Astound Business Solutions, as its enterprise technology partner to transform primary distri...
18/10/2025
NEW ORLEANS, La. In the run-up to the start of the NBA season, WVUE-TV and Gray Local Media have announced a deal with DirecTV that will greatly expand access t...
18/10/2025
Berklee Celebrates 40 Years of the Fall Together Concert Faculty composers Bob Pilkington and Greg Hopkins are among the featured artists for this year's ...
17/10/2025
NEP Group Receives New Equity Investment From 26North Partners LP, Co-InvestorsCarlyle remains the largest shareholder as the company prepares for the futureBy ...
17/10/2025
Apple Lands Five-Year Deal for F1 Distribution in the U.S.Besides airing on Apple TV, the sport will be amplified on other Apple servicesBy Ken Kerschbaumer, Ed...
17/10/2025
SVG Sit-Down: Marshall Electronics' Bernie Keach on the Future of PTZ Camera...
17/10/2025
L2 Productions' REMI Facility in Austin Can Produce Content From AnywhereMusic festivals, sports events are produced via flypacks and remote control roomsBy...
17/10/2025
By Lucy Spicer
One of the most exciting things about the Sundance Film Festival...
17/10/2025
(L-R) Christopher Meyer, Addison Timlin, Cooper Raiff, Lili Reinhart, Alyah Chan...
17/10/2025
M sica e arte se uniram em uma noite especial na semana passada na ZIV Gallery, ...
17/10/2025
Music and art came together for one special night last week at ZIV Gallery, an i...
17/10/2025
Spotify and FC Barcelona are extending our partnership through 2030, continuing a collaboration that's redefining how fans, players, and artists connect. Th...
17/10/2025
MURRIETA, Calif. The Sports Fishing Championship (SFC) has deployed DigitalGlue's creative.space storage platform to streamline video production by centrali...
17/10/2025
BELLEVUE, Wash. Football continued to cement its reputation as a bulwark of TV advertising in Q3 2025 with new data from iSpot that showed both the NFL and coll...
17/10/2025
The Sports Fishing Championship (SFC), the premier competitive saltwater fishing series, has transformed its production workflow by adopting creative.space, the...
17/10/2025
QuickLink, a leading provider of award-winning multi-camera video productions and remote contribution solutions, announces the release of StudioPro Version 4, ...
17/10/2025
Although the annual Grammy Awards celebration is best known for recognizing achievements in the recording industry, the show often proves a visual spectacle as ...
17/10/2025
OpenDrives, Inc., a leading provider of software-defined data storage and data services, has promoted Alex Dunfey to Chief Technology Officer (CTO) from his for...
17/10/2025
The University of Arizona (UofA) has significantly upgraded its broadcast communication infrastructure with the integration of Riedel Communications' advanc...
17/10/2025
Harmonic (NASDAQ: HLIT) today announced that New England Sports Network (NESN), owned by Fenway Sports Group and Delaware North, has selected Harmonic as its en...
17/10/2025
Austin PBS has recently upgraded its facility-wide communications infrastructure, deploying Clear-Com 's Eclipse HX, FreeSpeak II beltpacks, and V-Series ...
17/10/2025
ZEISS announces an open call for the closed BETA testing phase of CinCraft Virtual Lens Technology, the innovative digital tool that brings authentic lens chara...
17/10/2025
Situated in the town of Kokkola, Centria University of Applied Sciences offers higher education across five core fields: engineering, business, social and healt...
17/10/2025
Public information channel in Georgia, USA, to implement a powerful, simple, and cost-effective playout automation platform.
Pebble, the leading automation, co...
17/10/2025
HBO Max is reporting that it has launched in 15 new markets, including Bangladesh, Cambodia, Macau, Pakistan, Sri Lanka and Ukraine, boosting the streaming serv...
17/10/2025
Netflix said it will make a major push into video podcasts, inking a wide-ranging deal with Spotify through which it will offer 16 podcasts in the U.S. starting...
17/10/2025
Lexington, Ky. As part of a push to highlight its advanced advertising capabilities, Viamedia has launched a new AI-powered ad tech platform and officially rebr...
17/10/2025
NEW YORK QuickLink has announced the release of StudioPro Version 4, which the company is calling the most significant upgrade yet to its flagship video product...
17/10/2025
NEW YORK and CUPERTINO, Calif. Apple and NBCUniversal said they will sell Apple TV and Peacock streaming bundles to U.S. subscribers starting Oct. 20....
17/10/2025
Q&A with Boston Conservatory Choral Conductor Stephen Spinelli How his research into the lost manuscripts of composer Florence Price led to a Grammy-winning c...
17/10/2025
Back to All News
Netflix ISP Speed Index for September 2025
Product
17 October 2025
Global
Link copied to clipboard
This month, 1% of Internet Service Pro...
17/10/2025
NVIDIA's on the ground at Open Source AI Week. Stay tuned for a celebration ...
17/10/2025
AI has ignited a new industrial revolution.
NVIDIA and TSMC are working togethe...
17/10/2025
Gexcon is a trusted safety and risk management partner for complex, high hazard environments. ICG has been a dedicated marketing partner to Gexcon since 2018, b...
17/10/2025
Here is your host, Patrick Kielty!
After an incredible breakthrough year, Kingf...
16/10/2025
SVG Sit-Down: FUJIFILM Execs on GFX ETERNA 55 Camera, Importance of Shallow-Dept...
16/10/2025
Squash's Most Ambitious Broadcast Production To Be Deployed at Comcast Busin...
16/10/2025
Main Street Sports Group Inks Deal With Omaha Productions, Launches Original-Con...
16/10/2025
A Historic Precursor? FIFA, HBS, DAZN Offer an Inside Look at Production of FIFA...
16/10/2025
Prime Video Offers Sneak Peak at New NBA on Prime StudioThe massive 13,000-sq-ft, two-story studio features a LED regulation half court and hoopBy Jason Dachman...
16/10/2025
SVG Remote Production Forum Draws Record Crowd for Visit to PGA TOUR Studios, De...
16/10/2025
BitFire's Ben Grafchik on How Growing Cloud Workflows Are Impacting the Live...
16/10/2025
AI technology is advancing quickly, bringing both new creative possibilities and...
16/10/2025
In 2017, Imani Ellis launched CultureCon, a conference that's become a must-attend event for more than 10,000 diverse creatives and Black professionals to c...
16/10/2025
It might still be a little early to break out the tinsel and mistletoe, but Spotify's already queuing up some holiday magic. This year's Spotify Singles...
16/10/2025
Earlier this year, our in-house publishing imprint, Spotify Audiobooks, put out ...
16/10/2025
VAMPIRE has been integrated onto GM Defenses Infantry Squad Vehicle (ISV), providing a mobile solution to effectively and affordably counter small drone threat...
16/10/2025
The AgilePod mounted on the host aircraft....
16/10/2025
60% say infotainment systems are a critical purchasing or leasing consideration,...