Juniper Research Predicts AI Spending to Reach $7.3 Billion by 2022Retailer Spending on AI to Grow Nearly Fourfold, Reaching $7.3 Billion by 2022Personalisation Becomes KeyA new study from Juniper Research has found that global retailer spending on AI will reach $7.3 billion per annum by 2022, up from an estimated $2 billion in 2018, as retailers target new avenues to increase personalisation of the customer experience. Customer Service & Sentiment Analytics to Lead SpendingJuniper’s latest research found that spending will be strongest in customer service and sentiment analytics, where AI can be applied to understand customer reaction to the products purchased and the service received. This will prove to be a key tool for retailers seeking to improve their customer experience.
Juniper predicted that retailers will use AI insights to design and target new product ranges, as well as to create promotional offers. Demand Forecasting Crucial Element of AI UseThe research found that AI-backed demand forecasting is increasingly becoming a key tool for retailers. With the advent of specific days for shopping, such as the Black Friday phenomena, understanding customer demand and correctly planning based on this is more important than ever. Juniper argued that retailers must invest in this area in order to stay competitive, particularly in low-margin retail segments. It noted that the cost of AI tools, currently uneconomical for many players, will drop by 8% over the next 4 years, helping realise a 300% increase in software spend. |