AI Is Transforming the Way We Shop

Market research firm IDC released a report in August 2020 forecasting that the global AI market, composed of software, hardware, and services, is expected to total $156.5 billion in 2020, a 12.3% increase from 2019. Although the COVID-19 pandemic slightly slowed the usual growth, the firm believes that the AI market will recover quickly and projected its value to double in just four years, reaching over $300 billion by 2024. While the speed of AI adoption has varied across different industries, retail is one segment that has been slower to incorporate AI capabilities for a variety of reasons, including concerns over data privacy, job loss, and a lack of readiness. But with the recent ecommerce boom (largely driven by the pandemic), more retailers and "etailers" are finally taking a chance and exploring tech capabilities to create a more enjoyable, efficient, and tailored online shopping experience. Some brands, like ASOS, Burberry, and Victoria's Secret, have successfully deployed AI-driven chatbots to improve the customer support experience for their online shoppers.