Retail’s AI Revolution
In this study IHL looks at AI Revolution’s impact on retail. In this research regarding AI Revolution’s impact on retail, we analyze the impact of AI across the financial statements of retailers. Worldwide, IHL is forecasting that the overall economic impact of artificial intelligence worldwide through 2029 will be $9.2 trillion USD.
The last few years have been bust and boom for several types of retailers. Essential vs. Non-Essential, rapid ecommerce growth, government funds growing overall retail by over $2 trillion in North America alone, a pandemic, massive supply chain disruptions, and then the war in Ukraine and skyrocketing interest rates that are rapidly slowing consumer spend. Just when you hoped – could we get a pause from the rapid and radical change? – ChatGPT comes on the scene creating a truly Gutenberg moment that has the potential to change everything.
In our forecast research, we adopted a comprehensive approach to assess the overall economic influence that each AI type will have until 2029. We utilized our Worldview IT Spend Model as a foundation, considering various segments and categories. By refining the data based on 10 Line-of-Business Categories (such as BI, Ecommerce, Sales and Marketing, Distribution and Supply Chain, etc.), we calculated the projected impact over the next 7 years.
Additionally, we factored in regional and tier differentiations to derive the economic impact. Worldwide, IHL is forecasting that the overall economic impact worldwide through 2029 will be $9.2 trillion USD. In the following pages we will discuss what we believe the impact will be across the financial statements of retailers from Revenues, Gross Margins, and SG&A improvements. We chose economic impact as the measure as it is impossible to predict company behavior and other macro-economic events that will speed or delay the benefits.
For access to the complete AI Forecast Model, click here
For access to the detailed AI Readiness Index that ranks retailers by AI Readiness and potential financial impact, click here.
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