
Artificial intelligence is rapidly becoming the cornerstone of innovation in the retail and consumer packaged goods (CPG) industries.
Forward-thinking companies are using AI to reimagine their entire business models, from in-store experiences to omnichannel digital platforms, including ecommerce, mobile and social channels. This technological wave is simultaneously transforming advertising and marketing, customer engagement and supply chain operations. By harnessing AI, retailers and CPG brands are not just adapting to change - they're actively shaping the future of commerce.
NVIDIA's second annual State of AI in Retail and CPG survey provides insights into the adoption, investment and impact of AI, including generative AI; the top use cases and challenges; and a special section this year examining the use of AI in the supply chain. It's an in-depth look at the current ecosystem of AI in retail and CPG, and how it's transforming the industries.
Drawn from hundreds of responses from industry professionals, key highlights of the survey show:
89% of respondents said they are either actively using AI in their operations or assessing AI projects, including trials and pilots (up from 82% in 2023)
87% said AI had a positive impact on increasing annual revenue
94% said AI has helped reduce annual operational costs
97% said spending on AI would increase in the next fiscal year
Generative AI in Retail Takes Center Stage Generative AI has found a strong foothold in retail and CPG, with over 80% of companies either using or piloting projects. Companies are harnessing the technology, especially for content generation in marketing and advertising, as well as customer analysis and analytics.
Consistent with last year's survey, over 50% of retailers believe that generative AI is a strategic technology that will be a differentiator in the market.
The top use cases for generative AI in retail include:
Content generation for marketing (60%)
Predictive analytics (44%)
Personalized marketing and advertising (42%)
Customer analysis and segmentation (41%)
Digital shopping assistants or copilots (40%)
While some concerns about generative AI exist, specifically around data privacy, security and implementation costs, these concerns haven't dampened retailers' enthusiasm, with 93% of respondents saying they still plan to increase generative AI investment next year.
AI Across the Retail Landscape AI use cases have proliferated across nearly every line of business in retail, with over 50% of retailers using AI in more than six different use cases throughout their operations.
In physical stores, the top three use cases are inventory management, analytics and insights, and adaptive advertising. For digital retail, they're marketing and advertising content creation, and hyperpersonalized recommendations. And in the back office, the top use cases are customer analysis and predictive analytics.
AI has made a significant impact in retail and CPG, with improved insights and decision-making (43%) and enhanced employee productivity (42%) being listed as top benefits among survey respondents.
The most common AI challenge retailers faced in 2024 was a lack of easy to understand and explainable AI tools, underscoring a greater need for software and solutions - specifically around generative AI and AI agents - to enter the market to make it easier for companies to use AI solutions and understand how they work.
AI in the Supply Chain Managing the supply chain has always been a challenge for retail and CPG companies, but it's become increasingly difficult over the last several years due to tumultuous global events and shifting consumer preferences. Companies are feeling the pressure, with 59% of respondents saying that their supply chain challenges have grown in the last year.
Increasingly, companies are turning to AI to help address these challenges, and the impact of these AI solutions is starting to show up in results.
58% said AI is helping to improve operational efficiency and throughput.
45% are using AI to reduce supply chain costs.
42% are employing AI to meet shifting customer expectations.
Investment in AI for supply chain management is set to grow, with 82% of companies planning to increase spending in the next fiscal year.
As the retail and CPG industries continue to embrace the power of AI, the findings from the latest survey underscore a pivotal shift in how businesses operate in a complex new landscape. Leading companies are harnessing advanced technologies - such as AI agents and physical AI - to enhance efficiency and drive revenue, as well as to position themselves as leaders in innovation, helping redefine the future of retail and CPG.
Download the State of AI in Retail and CPG: 2025 Trends report for in-depth results and insights.
Explore NVIDIA's AI solutions and enterprise-level platforms for retail.
More from Nvidia
05/02/2026
Break out the cake and green sprinkles - GeForce NOW is turning six.
Since launch, members have streamed over 1 billion hours, and the party's just getting...
04/02/2026
Editor's note: This post is part of the Nemotron Labs blog series, which exp...
03/02/2026
At 3DEXPERIENCE World in Houston, NVIDIA founder and CEO Jensen Huang and Dassau...
29/01/2026
Mercedes-Benz is marking 140 years of automotive innovation with a new S-Class b...
29/01/2026
Editor's note: This post is part of Into the Omniverse, a series focused on ...
29/01/2026
Get ready to game - the native GeForce NOW app for Linux PCs is now available in beta, letting Linux desktops tap directly into GeForce RTX performance from the...
28/01/2026
Quantum technologies are rapidly emerging as foundational capabilities for economic competitiveness, national security and scientific leadership in the 21st cen...
22/01/2026
AI-powered driver assistance technologies are becoming standard equipment, funda...
22/01/2026
The wait is over, pilots. Flight control support - one of the most community-requested features for GeForce NOW - is live starting today, following its announce...
22/01/2026
AI has taken center stage in financial services, automating the research and exe...
22/01/2026
AI-powered content generation is now embedded in everyday tools like Adobe and Canva, with a slew of agencies and studios incorporating the technology into thei...
21/01/2026
From skilled trades to startups, AI's rapid expansion is the beginning of th...
21/01/2026
From skilled trades to startups, AI's rapid expansion is the beginning of th...
15/01/2026
NVIDIA kicked off the year at CES, where the crowd buzzed about the latest gaming announcements - including the native GeForce NOW app for Linux and Amazon Fire...
13/01/2026
NVIDIA and Lilly are putting together a blueprint for what is possible in the f...
09/01/2026
Every that was easy shopping moment is made possible by teams working to hit s...
08/01/2026
The next universal technology since the smartphone is on the horizon - and it ma...
08/01/2026
In the rolling hills of Berkeley, California, an AI agent is supporting high-stakes physics experiments at the Advanced Light Source (ALS) particle accelerator....
08/01/2026
NVIDIA is wrapping up a big week at the CES trade show with a set of GeForce NOW...
07/01/2026
AI has transformed retail and consumer packaged goods (CPG) operations, enhancin...
05/01/2026
At the CES trade show running this week in Las Vegas, NVIDIA announced that the ...
05/01/2026
Open-source AI is accelerating innovation across industries, and NVIDIA DGX Spar...
05/01/2026
NVIDIA DGX SuperPOD is paving the way for large-scale system deployments built on the NVIDIA Rubin platform - the next leap forward in AI computing.
At the CES...
05/01/2026
AI is powering breakthroughs across industries, helping enterprises operate with...
05/01/2026
NVIDIA founder and CEO Jensen Huang took the stage at the Fontainebleau Las Vega...
05/01/2026
At the CES trade show, NVIDIA today announced DLSS 4.5, which introduces Dynamic...
05/01/2026
2025 marked a breakout year for AI development on PC.
PC-class small language m...
05/01/2026
Announced at the CES trade show running this week in Las Vegas, NVIDIA is bringi...
01/01/2026
New year, new games, all with RTX 5080-powered cloud energy. GeForce NOW is kicking off 2026 by looking back at an unforgettable year of wins and wildly high fr...
25/12/2025
Holiday lights are twinkling, hot cocoa's on the stove and gamers are settling in for a well-earned break.
Whether staying in or heading on a winter getawa...
22/12/2025
The works of Plato state that when humans have an experience, some level of change occurs in their brain, which is powered by memory - specifically long-term me...
18/12/2025
NVIDIA will join the U.S. Department of Energy's (DOE) Genesis Mission as a ...
18/12/2025
Top-notch options for AI at the desktops of developers, engineers and designers ...
18/12/2025
Step out of the vault and into the future of gaming with Fallout: New Vegas streaming on GeForce NOW, just in time to celebrate the newest season of the hit Ama...
17/12/2025
The Hao AI Lab research team at the University of California San Diego - at the forefront of pioneering AI model innovation - recently received an NVIDIA DGX B...
17/12/2025
Editor's note: This post is part of Into the Omniverse, a series focused on ...
15/12/2025
NVIDIA today announced it has acquired SchedMD - the leading developer of Slurm, an open-source workload management system for high-performance computing (HPC) ...
15/12/2025
Modern workflows showcase the endless possibilities of generative and agentic AI on PCs.
Of many, some examples include tuning a chatbot to handle product-supp...
12/12/2025
In Las Vegas's T-Mobile Arena, fans of the Golden Knights are getting more than just hockey - they're getting a taste of the future. ADAM, a robot devel...
11/12/2025
Unveiling what it describes as the most capable model series yet for professional knowledge work, OpenAI launched GPT-5.2 today. The model was trained and deplo...
11/12/2025
Hunters, saddle up - adventure awaits in the cloud.
Journey into the world of M...
10/12/2025
The NVIDIA accelerated computing platform is leading supercomputing benchmarks once dominated by CPUs, enabling AI, science, business and computing efficiency w...
10/12/2025
The world's top-performing system for graph processing at scale was built on...
10/12/2025
As the scale and complexity of AI infrastructure grows, data center operators need continuous visibility into factors including performance, temperature and pow...
04/12/2025
Developers, researchers, hobbyists and students can take a byte out of holiday s...
04/12/2025
Editor's note: The Game Pass edition of Hogwarts Legacy' will also be supported on GeForce NOW when the Steam and Epic Games Store versions launch on t...
03/12/2025
The top 10 most intelligent open-source models all use a mixture-of-experts arch...
02/12/2025
Today, Mistral AI announced the Mistral 3 family of open-source multilingual, multimodal models, optimized across NVIDIA supercomputing and edge platforms.
M...
02/12/2025
At AWS re:Invent, NVIDIA and Amazon Web Services expanded their strategic collab...
01/12/2025
Researchers worldwide rely on open-source technologies as the foundation of their work. To equip the community with the latest advancements in digital and physi...