AI-Driven Demand Forecasting to Drive Higher Margins for Retailers, Says Juniper
Global retail spending on artificial intelligence services will reach $12 billion by 2023, up from a projected $3.6 billion this year, Juniper Research reported Wednesday. It expects over 325,000 retailers to adopt AI technology over the period. A rise in…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
“one-off” Black Friday-type events and buy-online-pickup-in-store shopping is creating a need for retailers to understand demand and supply chains based on AI, said analyst Nick Maynard. Retailers will face an AI adoption race, where retailers that have adopted such systems will be able to offer superior service at optimized prices, displacing those who haven’t, said the firm. The use of machine learning in demand forecasting will produce $3 billion revenue for AI vendors by 2023, up from $760 million this year, it said. Demand forecasting is expected to drive effective omnichannel experiences and higher margins; the number of retailers using AI-enabled demand forecasting is projected to triple from 2019 to 2023.