5 charts on the state of search in 2024: Google, AI, retail media, and more

The results showed that ecommerce was the most used channel, with 79% of retailers actively participating. Mobile applications also gained traction, with over half of retailers using them to bridge the gap between digital and physical shopping experiences. Retailers recognized the transformative potential of generative AI, with 86% expressing a desire to use it to enhance customer experiences.

In 2025, generative AI is creating shopping experiences that feel almost telepathic. Walmart’s AI is already playing party planner, customizing Super Bowl spread suggestions based on your previous game day purchases. Meanwhile, Dutch supermarket Albert Heijn has turned your random fridge photos into gourmet ai in retail trends meal plans. This isn’t just automation – it’s like having a personal shopping genius in your pocket. As someone who’s been analyzing business and technology trends for decades, I’m particularly excited about how 2025 is shaping up to be a watershed year where science fiction meets shopping reality.

AI will have an estimated 21% net increase on the United States GDP by 2030

Variables like seasonality, promotions, product & location attributes, holidays, events, and weather patterns can be used to enrich the underlying historical data. The use cases for AI technology abound, including inventory management, warehouse optimization, customer service improvements, and more. Retailers implementing these tools are already reaping the transformative benefits that only AI can deliver. Today’s generation of shoppers is growing more used to having AI involved in their transactions. Among customers, 80% expect bots and AI to improve experiences, according to a report by Verint.

While robots aren’t an entirely new retail technology and are already employed for tasks like product confection, we can expect to see more sophisticated, autonomous robots pave their way into the mainstream. According to a report by Global Market Insights, the Augmented Reality (AR) market value is expected to reach an astounding ChatGPT App $50 billion by 2024, with an annual growth rate of 75%. Along with industries like automotive and healthcare, we can attribute a high portion of this growth to the adoption of AR in retail. It’s no surprise that buyers often lean towards this delivery method as it guarantees more safety than in-store shopping.

Employing AI To Transform Your Business

Adopting AI in ecommerce comes with challenges such as data privacy concerns, integration with existing systems, and managing AI bias. By focusing on narrow AI applications, businesses can manage scope and complexity, demonstrating quick wins that build momentum and support for further AI initiatives. In terms of awareness, 67% of men have heard of Gen AI, while just 52% of women have. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Developing an enterprise-ready application that is based on machine learning requires multiple types of developers.

The Pew Research Center took a look at adults of all ages and found that 57% of adults prefer buying in-person versus online. Across the country there are approximately 25,000 second hand stores bringing in a total of $15 billion per year. Nearly one-third of U.S. consumers have purchased secondhand clothing in the past 12 months. Target’s newest private label brand Dealworthy will be featured in the apparel, electronics, beauty, and home categories. Search interest for one of Target’s brands “Good and Gather” is up more than 1,300% in the past five years.

You can foun additiona information about ai customer service and artificial intelligence and NLP. Integrating AI into existing business operations is a complex challenge that requires significant investment in infrastructure and specialized talent. Moreover, concerns about data privacy, ethical ramifications, and possible employment displacement provide additional challenges for companies looking to leverage AI. Szanger says that CDW’s Internet of Things workshop is a logical first step for retailers seeking to leverage AI in their businesses.

Utilizing AI for security allows ecommerce platforms, such as ecommerce websites, to offer a more secure shopping environment for their customers. To stay competitive, the survey indicated the importance of an omnichannel approach that integrates numerous online and offline channels to provide consumers with a consistent experience. Implementing AI requires substantial investment in technology and skilled personnel, which can be a hurdle for smaller retailers.

AI in Retail – Outlook and Trends

Gen AI tools like ChatGPT can enhance consumer support to the next level by responding to queries, explaining products, offering product recommendations, showing multiple options, and more. Even Gen AI’s ability to do visual searches with high precision can enhance sales from online stores. The retail giant leverages GenAI to better understand consumer intent basis the query, and the consumer engagement with its items.

• In 2025, we can expect even more brands to invest in shoppable video content on retail media networks.
• The US Bureau of Economic Activity released its third revision of real GDP for Q4 and full year 2023.
• To be sure, today’s shoppers are complicated and choosy, with shifting preferences that can be difficult for retailers to keep up with.
• Early deployments in the retail industry include personalized shopping advisors and adaptive advertising, with retailers initially testing off-the-shelf models like GPT-4 from OpenAI.

Having witnessed the latest AI trends, we can surmise the powerful impact of AI across industries. As AI technologies continue to evolve, we can expect smarter and more intuitive systems, intelligent automation, personalized experiences, and enhanced decision-making across sectors. The fifth generation of mobile network technology, or 5G, offers far faster speeds and reduced latency than its predecessors. When AI is integrated with 5G networks, it exploits these capabilities to process data faster and facilitate more responsive communication. This merger is crucial for cutting-edge applications like driverless cars and smart cities, where real-time data processing and prompt decision-making are imperative. In the former, AI identifies patterns in data sets and performs predictive analytics.

And as AI adoption continues to grow, the challenge of AI bias has become a serious concern across the board. This has led to the rapid adoption of explainable AI, a field of study that examines the patterns in AI models and specifies how they make a particular decision. And when combined with the potential of AI, RFID can become a potent weapon against theft.

In 2024 retail brands need to be able to connect with consumers across multiple channels. This way, retailers can improve their revenues and make the shopping process more exciting and satisfactory for the customers. The demand for a seamless shopping experience in all retail channels becomes more and more apparent.

Healthcare and automotive industries are expected to see the most impact from AI use

Roblox and Minecraft remain powerhouses in this arena, and while they are considered gaming platforms, practically speaking they’re also incredible conduits for retailers to connect with future generations of consumers. Moving into 2022, companies will need to focus on addressing the rising needs for sustainability and seamless customer experience, especially within brick-and-mortar stores. Machine learning and artificial intelligence adaptation, VTOs, and experiential retail will become increasingly popular with customers who are looking for personalized and out-of-the-box solutions.

Paul Lin, tech entrepreneur and CEO of Returned.com, dedicated to revolutionizing the retail returns process through innovative AI. They’ve checked off a successful pilot in Australia, and are looking to expand. Expect delivery to take about 30 minutes, and if this test is successful there are plans to expand to other US cities. Wing Drones, by the way, is a provider “powered by Alphabet”, so there are all kinds of tech implications on this one. AI experts can play a crucial role in this phase by providing guidance and helping to bring minimum viable products to life efficiently.

With its remarkable use cases across industries, AI technology trends drive innovation, efficiency, and automation. Let’s witness the power of the AI revolution with some intriguing and enlightening AI statistics that showcase the immense ChatGPT impact of AI technology on businesses, the economy, and daily lives. With technology evolving at a breakneck speed, many companies are finding it difficult to keep up with the rapid developments in artificial intelligence (AI).

• On the other hand, together, two technologies, RFID—which offers item identification and inventory visibility—and computer vision, can create frictionless, checkout-free stores, enhancing the shopping experience.
• Retail media is a type of advertising that uses retailers’ unique customer data sets to create targeted ad campaigns.
• These insights provide a roadmap for retailers aiming to lead the future of retail through innovative AI solutions.
• Fashion retailer Uniqlo has enabled RFID checkout at all 47 of their stores in the United States.
• In addition, the efficacy of AI systems is contingent upon the quality of the data they rely on.