A recent study by the Capgemini Research Institute examines the multi-billion dollar opportunity that artificial intelligence (AI) offers for retail. AI deployments among large retailers have increased exponentially in recent years, but many use cases have yet to be tapped. With feedback from over 400 retailers, analysis of more than 40 real-world use cases, and secondary research of the top 250 retailers' current state of AI deployment, the report not only investigates the status quo, but also offers a practical framework of use cases for companies that are just starting their AI journey. Input from retailers lends some much-needed realism to the discussion about AI deployments. Retailers are slowly realizing that AI and machine learning (ML) are not silver bullets.

AI is impacting every sector, and retail is no exception. Analysts have estimated that global annual spending on AI by retailers is estimated to reach 7.3 billion by 2022, all because AI offers new ways to improve the customer experience and to optimize operational efficiency and productivity. But are retail organizations getting the most out of this epoch-making technology? The new report by the Capgemini Research Institute Building the Retail Superstar: How unleashing AI across functions offers a multi-billion dollar opportunity surveyed 400 retailers implementing AI use cases at different stages of maturity (a group that represents 23% of the global retail market by revenue). The report shows that around three-quarters of use cases in retail are consumer-facing and that retailers, in focusing on AI in sales and marketing, are losing sight of other areas, such as supply chain, procurement, and logistics, to which AI can also be applied for easy-win opportunities. Many retailers are going after complex use cases and overlooking a $340 billion prize offered by use cases in operations.