
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 ...
16/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/04/2026
Telestream Cloud Services, including Vantage Cloud, UP, and SENTRY monitoring tools, are now optimized for OCI, powering flexible multi-cloud media orchestratio...
16/04/2026
Fox Corporation (Nasdaq: FOXA, FOX; FOX or the Company ) today announced a strategic collaboration with Amazon Web Services (AWS), naming AWS as its preferre...
16/04/2026
Triveni Digital, a trusted leader in ATSC 1.0 and 3.0 service delivery, data broadcasting, and quality assurance solutions, today announced an ISDB-Tb capabilit...
16/04/2026
Synamedia and SoFast announce strategic go-to-market partnership to accelerate FAST, pay-TV, and VOD
At the NAB Show 2026, Synamedia and SoFast are announcing ...
16/04/2026
Showcases New, Open-Standard IP Solutions Across Its Portfolio, From Production to Playout
Imagine Communications is marking a decade of leadership in ST 2110 ...
16/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/04/2026
Sportway Media Group, a world leading AI-automated sports production company and Broadcast Solutions, a leading system integrator and provider of innovative sol...
16/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/04/2026
AJA Enters into Agreement to Acquire Video Encoding Software Company Comprimato
Brie Clayton April 15, 2026
0 Comments
Deal will expand AJA's video ...
16/04/2026
Deity Announces PR-4 Compact Field Recorder with Pre-Orders Launching April 14
Brie Clayton April 15, 2026
0 Comments
Deity Microphones today announce...
16/04/2026
Berklee's First Homecoming Brings Global Alumni to Boston for a Block Party ...
16/04/2026
The search for Ireland's newest country music star takes place live on Frida...
16/04/2026
Head straight for orbit with GeForce NOW - no space helmet required.
PRAGMATA,...
15/04/2026
Open Broadcast Systems has announced that BBC World Service has selected its IP ...
15/04/2026
LiveU has announced an expansion of its collaboration with Sony Corporation, add...
15/04/2026
Ateme has announced a collaboration with NVIDIA to support live Apple Immersive ...
15/04/2026
The Professional Fighters League (PFL) has announced a multi-year partnership renewal with DAZN DACH, covering Germany, Switzerland, Austria, Liechtenstein, and...
15/04/2026
Canon U.S.A. (NAB Booth C3825) today took the lid off of the CINE-SERVO 40-1200m...
15/04/2026
Panasonic Video and Audio Systems North America and NEP Group will demonstrate a...
15/04/2026
For the fourth year running, independent analysts found businesses across all industries and verticals pay roughly the same amount in fees as they spend on stor...
15/04/2026
The Soccer Tournament (TST) has announced a media rights deal with NBC Sports to...
15/04/2026
JB&A will host the Pre-NAB 2026 Technology Event on April 17-18 at Flamingo Las Vegas, ahead of NAB Show. The event features hands-on demonstrations and technic...
15/04/2026
The Sennheiser Group will exhibit at NAB Show 2026 (Booth 4931, Central Hall), with demonstrations from Sennheiser, Neumann, and Merging across three areas: Rel...
15/04/2026
NAB Show 2026 will take place April 18-22 at the Las Vegas Convention Center, wi...
15/04/2026
AI-Media has announced the LEXI Text Encoder and LEXI Voice Encoder at NAB Show 2026, the company's first new encoder hardware release in more than a decade...
15/04/2026
Italian camera support manufacturer Cartoni will introduce several new products at NAB Show 2026 (Booth C6540, Central Hall), including the Master 30 OB fluid h...
15/04/2026
Lawo and swXtch.io have announced a memorandum of understanding at NAB Show 2026, under which Lawo will explore incorporating swXtch.io's groundSwXtch softw...
15/04/2026
CacheFly will exhibit at NAB Show 2026 (Booth W3129, April 19-22, Las Vegas Convention Center), showcasing three new additions to its content delivery platform:...
15/04/2026
Synamedia has announced GO Shorts, a new module within its Synamedia Go OTT platform that uses AI to convert an operator's existing content library into a s...
15/04/2026
The NAB Show kicks off on Saturday, and the SVG and SVG Europe editorial teams a...
15/04/2026
AJA Video Systems has announced an agreement to acquire Comprimato, a live video encoding and processing software company. The deal will unite the two companies...
15/04/2026
Prime Video Sports' NBA Playoffs coverage, which includes the entire SoFi NB...
15/04/2026
Just announced, the SDE standard provides a unified method and file format to ensure consistent and reliably comparable noise predictions
Sports and entertainm...
15/04/2026
From immersive storytelling to laugh-out-loud comedies, podcasts are booming in ...
15/04/2026
Books have always moved with us, whether tucked in our bags or humming in our he...
15/04/2026
For many artists, independent venues are where music careers begin and fan communities take shape. Independent venue operators work hard every day to keep local...
15/04/2026
From gripping thrillers to poignant memoirs, the 21st century has had no shortage of unforgettable books. To celebrate the standout storytelling of our modern e...
15/04/2026
Vintage broadcast experts release second plug-in
Telsie T is the second plug-in to be released by SonicWorld, a German audio company who specialise in servi...
15/04/2026
Includes eight free UAD plug-ins
Universal Audio's latest bundle brings together a selection of their renowned plug-ins and virtual instruments, and is ...