Growth in AI-Enabled Customer Service & Chatbots Driving Global AI in Retail Market at 32.3% CAGR

Published: Dec 2025

Global AI in retail market was valued at $12.75 billion in 2025 and is projected to reach $207.6 billion by 2035, growing at a CAGR of 32.3% from 2026 to 2035. The adoption of AI-powered customer service tools and chatbots is rapidly expanding in retail as businesses aim to deliver faster, more personalized, and round-the-clock support. These systems leverage natural language processing (NLP) and machine learning to understand customer queries, provide instant responses, and even guide shoppers through product recommendations or troubleshooting. By automating routine interactions, retailers can reduce operational costs, free up human staff for complex tasks, and improve response times. Additionally, AI chatbots collect valuable customer data, helping brands refine marketing strategies, tailor promotions, and enhance overall customer experience. This combination of efficiency, personalization, and data-driven insights is driving strong growth in the AI retail market during the forecast period. For instance,

Browse the full report description of “AI in Retail Market Size, Share & Trends Analysis by Component (Solution and Services), By Technology (Machine Learning, Natural Language Processing, Computer Vision, Robotics, and Deep Learning) By Application (Customer Relationship Management, Inventory Management, Supply Chain & Logistics, Product Optimization, In-Store Navigation, Payment and Pricing Analytics, Virtual Assistant, and Others) Forecast Period (2026-2035) at https://www.omrglobal.com/industry-reports/ai-in-retail-market

  • In May 2025, Lowe's launched Mylow Companion, an AI tool aimed at improving customer service and speeding associate onboarding. Purpose-built for associate sales floor devices, the app provides fast access to product details, project advice, and inventory information.
  • In October 2024, Zalando scaled its existing AI-powered offerings, Zalando Assistant and Trend Spotter. While Trend Spotter now includes four additional cities, the beta version of the Zalando Assistant is now available to logged-in customers across our 25 markets in the respective local language. Both initiatives are in line with Zalando’s commitment to offering customers an even more engaging and inspiring experience on its website and app.
  • In June 2023, Carrefour launched Hopla, a chatbot based on ChatGPT, which will be integrated into the Carrefour.fr website. Customers will be able to use this natural-language AI to help them with their daily shopping. They will find it on the site’s home page and will be able to ask for help in choosing products for their basket, based on their budget, food constraints they may have, or menu ideas. The robot can also suggest anti-waste solutions for reusing ingredients and composing associated recipes and baskets. The robot is connected to the site’s search engine and offers customers lists of products related to what they are discussing, right up until they make their purchase.

Key Players and Innovations

  • The key players in the global AI in retail market include Amazon Web Services, Inc., IBM Corp., Microsoft Corp., NVIDIA Corp., and Salesforce, Inc. among others. For instance, in February 2024, Amazon announced Rufus, a new generative AI-powered conversational shopping experience. Rufus is an expert shopping assistant trained on Amazon’s product catalog and information from across the web to answer customer questions on shopping needs, products, and comparisons, make recommendations based on this context, and facilitate product discovery in the same Amazon shopping experience customers use regularly.

Market Coverage

  • The market number available for – 2025-2035
  • Base year- 2025
  • Forecast period- 2026-2035
  • Segment Covered-
    • By Component
    • By Technology
    • By Application
  • Regions Covered-
    • North America
    • Europe
    • Asia-Pacific
    • Rest of the World
  • Competitive Landscape - Amazon Web Services, Inc., IBM Corp., Microsoft Corp., NVIDIA Corp., and Salesforce, Inc.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Global AI in Retail Market Report Segment

By Component

  • Solution
  • Services

By Technology

  • Machine Learning
  • Natural Language Processing
  • Computer Vision
  • Robotics
  • Deep Learning

By Application

  • Customer Relationship Management
  • Inventory Management
  • Supply Chain & Logistics
  • Product Optimization
  • In-Store Navigation
  • Payment and Pricing Analytics
  • Virtual Assistant
  • Others

Global AI in Retail Market Report Segment by Region

North America

  • United States
  • Canada

Europe

  • UK
  • Germany
  • Italy
  • Spain
  • France
  • Russia
  • Rest of Europe

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia and New Zealand
  • ASEAN Economies
  • Rest of Asia-Pacific

Rest of the World

  • Latin America
  • Middle East & Africa

 

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