A comprehensive NVIDIA survey reveals unprecedented AI adoption in retail. 87% of companies report revenue increases and 94% achieve operational cost reductions through AI implementation. The industry-wide transformation spans marketing, customer engagement, and supply chain operations.
According to NVIDIA's second annual "State of AI in Retail and CPG" survey, the retail industry is witnessing a dramatic shift toward artificial intelligence adoption. The study reveals that 89% of retailers are either actively using AI or piloting AI projects, marking a significant increase from 82% in 2023. This surge in adoption is backed by compelling business outcomes, with nearly all respondents (97%) planning to increase AI investment in the next fiscal year.
The financial impact of AI implementation has been particularly noteworthy. While 87% of companies reported AI-driven revenue growth, an even more impressive 94% experienced reductions in operational costs. These metrics underscore AI's dual benefit of both top-line growth and bottom-line optimisation.
Generative AI has emerged as a key strategic differentiator, with over 80% of retail companies either deploying or piloting such solutions. The technology has found particular traction in content generation for marketing (60%), predictive analytics (44%), and personalised marketing and advertising (42%). Despite data privacy and security concerns, 93% of retailers plan to increase their generative AI investments in the coming year.
AI use cases have proliferated throughout retail operations, with over 50% of retailers using AI in more than six different use cases. AI drives inventory management and adaptive advertising in physical stores, while digital retail operations leverage AI for marketing content creation and personalised recommendations.
In supply chain management, where 59% of companies reported increased challenges over the past year, AI is delivering significant operational improvements. The survey indicates that 58% of companies achieved enhanced operational efficiency and throughput through AI implementation, while 45% successfully reduced supply chain costs.