Retailers’ global spending on AI will reach $12 billion by 2023, more than four times the figure forecast for 2019.
This is according to a study from research company Juniper, which suggests that more than 325,000 retailers will adopt artificial intelligence technology during the period.
The company believes the use of AI will become more entrenched in retail marketing, leading to cost savings and new revenue streams.
In particular they suggest that chatbots will be used more extensively to reach customers through their preferred social media platforms, and to offer greater personalisation in messaging and product offering.
Through their use of Natural Language Processing to understand and respond to real humans, chatbots have become a valuable new tool for B2C marketers.
Juniper reports that Octane AI, a popular Facebook chatbot provider, reaches 90 per cent of customers who have abandoned their carts, eventually converting 10 per cent of those users.
The study suggests that machine learning will also help marketers analyse customers more deeply, leading to better retention and more efficient upselling.
Outside of marketing, Juniper also believe that AI will have new and deeper applications in demand forecasting and supply chain analytics, and will be used more extensively by payment providers to help SMEs understand their sales patterns.