
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 ...
24/04/2026
Churchill Downs Inc. (CDI) has announced a definitive agreement to acquire the intellectual property of the Preakness Stakes and Black-Eyed Susan Stakes from 1/...
24/04/2026
Daktronics has partnered with DCL (Design Communications, Ltd.) to design, manuf...
24/04/2026
Chyron has announced PRIME Translate, a workflow solution that produces live content simultaneously in multiple languages within the PRIME platform. The system ...
24/04/2026
Eutelsat has announced a new partnership with Co-op Cable, introducing an expand...
24/04/2026
Pitch Dublin, an indoor golf simulation and hospitality venue on Dawson Street i...
24/04/2026
G&D and VuWall have announced two senior leadership appointments, effective Apri...
24/04/2026
Victory , the free sports streaming service from A Parent Media Co. Inc. (APMC), has announced a multi-year agreement to become the exclusive local streaming ho...
24/04/2026
The former business major from Massachusetts has found his home in graphics and bug operation while contributing to live ESPN productions
In the live-sports-vi...
24/04/2026
The Mid-Atlantic Sports Network (MASN) and Spectrum have announced a multiyear carriage agreement making MASN available to Spectrum customers in areas of southe...
24/04/2026
The NFL Draft is rebuilt from the ground up in a new city every year. The three-day fan festival is expected to draw 500,000 or more attendees, with millions fo...
24/04/2026
Diversified has continued expansion of its sports and media capabilities to supp...
24/04/2026
NAB reports that the 2026 NAB Show wrapped with more than 58,000 registered atte...
24/04/2026
Clear-Com has announced significant updates to its Arcadia Central Station and E...
24/04/2026
NAB reports that the 2026 NAB Show wrapped with more than 58,000 registered atte...
24/04/2026
Ratings Roundup is a rundown of recent rating news and is derived from press rel...
24/04/2026
B/R NFL Draft Live' refines the digital giant's productions around footb...
24/04/2026
Study highlights five pillars shaping modern fan engagement as broadcasters reth...
24/04/2026
The 2026 event, the first Draft with NFL Network under the ESPN umbrella, will b...
24/04/2026
In-venue and creative video staffers at the professional and collegiate level ha...
24/04/2026
Integral to the Draft production for three almost decades, the company tells the...
24/04/2026
Championing documentaries that illuminate and expand the artform is at the core ...
24/04/2026
The Peabody Awards spotlight excellent work that endures. This year's winner...
24/04/2026
Earth Day is a chance to reflect on our connection to the natural world. To mark the 57th Earth Day on April 22, Spotify's editors have pulled together a co...
24/04/2026
This past weekend, Spotify was at the heart of the largest literary event in the...
24/04/2026
All data tells a story, and in our case, that story is written by you. To celebrate 20 years of Spotify, we're sharing bite sized moments that capture how t...
24/04/2026
Over the past 20 years, Spotify's look and feel has evolved with the way people use our platform, while ensuring we preserve an intuitive, personal, and fam...
24/04/2026
It's been 20 years since Spotify began, but the real story is what the world chose to play. For the first time, we're unveiling the most streamed artist...
24/04/2026
Whether you're relaxing at home or on the go, Spotify is there across more than 2,000 devices, ready with your favorites or something new to discover. Now, ...
24/04/2026
Nintendo and Spotify are welcoming fans to the Super Mario Bros. 40th anniversary and the release of The Super Mario Galaxy Movie with new playlists and a speci...
24/04/2026
30 October - 1 November 2026
The Audio Engineering Society (AES) have announced that the AES Show 2026 will be held on Halloween weekend - Friday 30 October...
24/04/2026
New closed-back design promises honest' low end
Sennheiser have just announced the launch of a new pair of flagship closed-back headphones which they s...
24/04/2026
Powerful 12-channel hardware sequencer announced
Cre8audio are renowned for their innovative, and often visually striking designs, and although their latest...
24/04/2026
Room correction now supports full 9.1.6 Dolby Atmos setups
The software element of IK Multimedia's room-correction system has just received an update th...
24/04/2026
New content for BBO Tutti & BBO Riffs
VSL have recently introduced some new free content expansions for two of their most popular Big Bang Orchestra Packs: ...
24/04/2026
Rohde & Schwarz to highlight its R&S EVSD1000 UAV-based navigation analyzer at I...
24/04/2026
The National Film and Video Foundation (NFVF) is pleased to announce that the ca...
24/04/2026
ITV's Director of Drama Polly Hill has commissioned six part propulsive, lun...
24/04/2026
The NASA 777 aircraft departs the L3Harris facility in Waco, Texas....
24/04/2026
WASHINGTON, April 23, 2026 - L3Harris Technologies (NYSE: LHX) has closed a $1 b...
24/04/2026
In partnership with Airbus U.S. Space & Defense, Inc., L3Harris Technologies is advancing autonomous aviation for the U.S. Marine Corps' Aerial Logistics Co...
24/04/2026
L3Harris' hC2 software, powered by Systematic SitaWare, strengthens battlefield decision-making by using open architectures to connect platforms, sensors an...
24/04/2026
Artist rendering of L3Harris' AERIS X next-generation airborne early warning...
24/04/2026
AgileTV presents in Las Vegas its technological proposition to power safer, more scalable and efficient TV ecosystems for telecom operators, ISPs and entertainm...
24/04/2026
Canada's C gep de Jonqui re and Calrec take five with a substantial TV studio upgrade Underscoring its global reputation as one of Canada's most renowne...