
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 ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
26/08/2026
Applicants interested in the Media Innovation Europe 3.0 Validation Booster call can now consult a new FAQ document addressing practical questions raised during...
26/08/2026
Roku Sports Channel will stream eight matches free beginning Aug. 30 as league shifts Sunday-night games away from Victory+...
26/08/2026
Evertz and Mobile TV Group detail how on-premises infrastructure and cloud resou...
26/08/2026
The Sennheiser Group will demonstrate its broadcast audio portfolio at IBC2026 (Hall 8, Booth D50), covering wireless microphone workflows, studio monitoring, a...
26/08/2026
Appear and Transmisiones Televisivas TVTEL Limitada have announced the deploymen...
26/08/2026
Leader Electronics has announced that Danish broadcast rental company Minitech has purchased a Leader LPX500 hybrid IP/SDI waveform monitor and LT4670 sync puls...
26/08/2026
Encompass will demonstrate its Altitude media services at IBC2026 (IAMT Hub, Diamond Lounge, Hall 3, RAI Amsterdam, September 11-14).
Key products on show incl...
26/08/2026
Daktronics has partnered with Massillon Washington High School in Ohio to install a new LED video display and implement the Daktronics Camino show control platf...
26/08/2026
Clear-Com has appointed Dubai-based Venuetech LLC as its main partner for the Middle East. Venuetech distributes professional audiovisual solutions across the r...
26/08/2026
NBC Sports NOW, NBC Sports' free 24/7 streaming channel, will launch a new weekday lineup beginning Monday, August 31, including two new shows.
Not So Fast...
26/08/2026
Calrec will demonstrate updates to its ImPulseV DSP software and Argo ecosystem at IBC2026 (Stand 8.C47), including previews aligned with the EBU's Dynamic ...
26/08/2026
Imagine Communications will demonstrate AI applications across its ad tech and video infrastructure portfolios at IBC2026 (Stand 1.B73, RAI Amsterdam, September...
26/08/2026
Dalet will demonstrate updates to Dalet Flex, Dalet Pyramid, and Dalia, its agentic AI platform, at IBC2026 (Hall 7, Stand 7.A43). The company will also partici...
26/08/2026
Team-owned platform will stream every locally carried Predators game beginning t...
26/08/2026
The 12-day tournament receives the broadcaster's full onsite-studio presence...
26/08/2026
A synth with no controls?
If you're into weird and wonderful instruments, then you may already be familiar with Warsaw-based SOMA Laboratory - if you...
26/08/2026
Physical modelling orchestral instrument announced
Following their recent cryptic hints, Dreamtonics have officially revealed the latest addition to their s...
26/08/2026
Discussions at the Meitingen site on competitiveness, energy supply, and fuel cell technology
Bertram Brossardt, CEO of the Bavarian metal and electrical emplo...
26/08/2026
Rohde & Schwarz USA celebrates grand opening of new manufacturing center in Fred...
26/08/2026
For large media companies, the content archive is a gold mine. There are thousands of hours of existing, high-value assets just waiting to be tapped for highlig...
26/08/2026
Ad Supported Viewing Represents 71.5% of TV in Q2
Streaming Captures Over 48% o...
26/08/2026
Charity sector ad spend reached $278 million as 44% of Australians donated to ch...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
MediaKind today announced that CNBC UK has selected Beam to modernize its contribution and distribution infrastructure, bringing greater flexibility, resilience...
26/08/2026
Telestream, a global leader in media workflow technologies, today announced the next evolution of Telestream UP, expanding the cloud-native platform introduced ...
26/08/2026
SMPTE, the home for media professionals, technologists and engineers, today announced its 2026 Honorees, recognizing individuals and organizations whose contrib...
26/08/2026
New solution bridges connected TV (CTV) and ecommerce to make shoppable performance advertising easier to scale for streaming platforms and broadcasters
Broadp...
26/08/2026
LA JOLLA, CA-Recent advances in robotics, automation and artificial intelligence...
26/08/2026
How WeFX Made From's' Monsters Feel Uncomfortably Real
Brie Clayton August 26, 2026
0 Comments
From eight-foot dolls and feathered birds to R...
26/08/2026
Eleanor Roosevelt High School Elevates Student Rallies with Blackmagic Design
Brie Clayton August 26, 2026
0 Comments
Student led production team uses...
26/08/2026
K-Frame and Maverik X innovations extend familiar production control into AMPP, alongside new replay, audio, commentary and communications capabilities.
At IBC...
26/08/2026
New products continue to enable any signal, anywhere for creators...
26/08/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced a new integrated newsroom experience with Agence France-Presse (A...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/08/2026
PTZ Camera Manufacturer and FPGA Design Specialist Join Alliance to Advance IPMX and Open AV-over-IP Standards
The Alliance for IP Media Solutions (AIMS) today...
26/08/2026
BATON offers ZOO Digital advanced audio and video quality analysis, and scalable architecture
Interra Systems, a leading provider of end-to-end quality assuran...
26/08/2026
Riedel Communications today announced the continued expansion of its managed coach communications partnership with Scottish Rugby Union. Now entering its third ...
26/08/2026
Zixi brings Broadcaster V19 and showcases interoperable platform on Stand 5.A76
Zixi, a leader in live video delivery and workflow orchestration, will be exhib...
26/08/2026
LA JOLLA, CA-Jeffery Kelly, the H. Lutcher Brown Professor of Chemistry at Scrip...
26/08/2026
Indie Developer Launches Orty, aWindows App That Helps Freelance VideoEditors Fi...