
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.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
29/04/2026
It was a delicate job in a 150-year-old venue laden with traditions. Begun at th...
29/04/2026
In annual event, the league gives startup companies the opportunity to prove the...
29/04/2026
Panel discussions, networking, and a facility tour will take place in the renova...
29/04/2026
(L-R) Derek Drescher, Coss Marte, and Syretta Wright have each other's backs. (Micheal Hurcomb/Shutterstock for Sundance Film Festival)
By Veronika Lee Cla...
29/04/2026
Combines EQ and harmonic distortion
Techivation's latest release is a simple EQ designed to offer quick control over a source's overall tonal balanc...
29/04/2026
Two new MPE controllers announced
Expressive E caused quite a stir when they released the Osmose, making the sort of expression that was once reserved for p...
29/04/2026
New modules & enhanced machine-learning
The latest version of iZotope's flagship restoration suite is now available, and now offers over 50 tools design...
29/04/2026
Surgeon Dr Jasmina Kevric wins 2026 Les Murray Award
29 April, 2026
Media releases
Australia for UNHCR and SBS are proud to announce that Dr Jasmina Kevric...
29/04/2026
Some people stumble into their passion. Julissa Padilla walked straight into a film vault. For her, entertainment was never just about the movies themselves. It...
29/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/04/2026
Clear-Com has appointed Brian Grahn as Market Outreach Manager of the Americas and Ben Turnwell as Business Development Manager for EMEA live, expanding their ...
29/04/2026
nxtedition is bringing its range of consolidated production tools to MPTS 2026, with new developments spanning transcription, editing, graphics and AI-assisted ...
29/04/2026
Quortex Switch to boost the streaming experience for Telxius customers, reaching millions of viewers worldwide
Synamedia and Telxius, the leading global connec...
29/04/2026
freispace, the leading ERP-as-a-Service platform for media and entertainment production, and Projective, a leading provider of post-production collaboration tec...
29/04/2026
DHD reports strong interest in its broadcast audio product range, exhibited at the April 19th-22nd NAB Show in Las Vegas. The event attracted a claimed 58,000 a...
29/04/2026
Student Spotlight: Alan Catz The Argentine film and game composer talks about working on League of Legends, receiving Berklee's BMI Award, and the lifelon...
29/04/2026
Jay Jennings Builds the Worlds You Hear on Screen The supervising sound designer behind A Minecraft Movie, The Meg, Letters from Iwo Jima, and dozens of other...
29/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/04/2026
29 Apr 2026
VEON and Kyivstar Fulfill Commitment to Invest USD 1 Billion in Ukr...
29/04/2026
Rhod Gilbert, Harriet Kemsley, Kae Kurd, Sara Pascoe and Vicki Pattison to take part in brand new series on free streaming service U
London, 29th April 2026: F...
29/04/2026
Wednesday 29 April 2026
Katie Price: Nothing to Hide, a Sky Original documentar...
29/04/2026
Re-examining the case of Ellie Williams and the wider story of grooming in the town of BarrowWednesday 29 April 2026
Sky announces upcoming documentary series ...
29/04/2026
Wednesday 29 April 2026
Jennifer Garner to lead an all-star cast in new Sky Exc...
29/04/2026
Back to All News
SUPERNOVA: GENESIS Reached a Peak Audience of More Than 6.5 Mi...
29/04/2026
Students and staff from Hills Road Sixth Form College in Cambridge ran a 4.5km course around the roads of Cambridge as part of their annual programme of sustain...
29/04/2026
The Dawn Chorus airs Sunday 3 May from midnight to 7am on RT Radio 1 and RT ly...
29/04/2026
Jin-Quan Yu elected to the National Academy of Sciences Yu is recognized for his pioneering work in synthetic organic chemistry.
April 28, 2026
LA JOLLA, CA S...
28/04/2026
The audio team for the entertainment event must blend speech intelligibility with full-range music reproduction while considering the broadcast
Last week's...
28/04/2026
The Pac-12 Conference has released an updated primary mark and logo as the starting point of the new league's brand identity. The mark was soft-launched acr...
28/04/2026
The DP World Tour and Amazon Leo have signed an agreement making Amazon's lo...
28/04/2026
Pixellot and HELIOS have announced an integration that automatically converts full-game hockey video into individualized shift videos for each athlete, without ...
28/04/2026
Daktronics has partnered with the Asheville Tourists to manufacture and install a new LED video display. The installation was completed in late 2025 and is now ...
28/04/2026
Eutelsat has announced the renewal of its partnership with PCTV, a content aggregation and distribution company in Mexico and part of Megacable Holdings, for co...
28/04/2026
Daktronics has partnered with the Gary SouthShore RailCats to install a new LED video display at U.S. Steel Yard, replacing the previous Daktronics display inst...
28/04/2026
Telos Alliance and the College Radio Foundation have announced that WWSU-FM of W...
28/04/2026
Golf viewership is growing. The 2025 Ryder Cup drew five million viewers in the UK, a 45% increase over the 2023 event. The US Open was the most streamed golf e...
28/04/2026
The CW Network and WWE, part of TKO Group Holdings (NYSE: TKO), have announced t...
28/04/2026
The Alliance for IP Media Solutions (AIMS) has announced that the Internet Protocol Media Experience (IPMX) suite of standards and specifications has been named...
28/04/2026
The 2026 NAB Show is in the books and the show once again served up a cavalcade ...
28/04/2026
Gray Media and RAJ Sports have announced Rose City SportsNet (RCSN), a new netwo...
28/04/2026
Today, we announced our First Quarter 2026 earnings, starting the Year of Raising Ambition with strong momentum across the business and continued innovation acr...