Artificial intelligence is reshaping the retail and consumer packaged goods (CPG) industries, with a growing number of companies leveraging it to innovate across business operations. According to NVIDIA’s “State of AI in Retail and CPG” survey, 89 percent of respondents are either using AI or evaluating projects, an increase from 82 percent in 2023. The survey reveals that 94 percent of businesses have reduced operational costs through AI, while 87 percent reported increased annual revenue. Generative AI is becoming particularly impactful, with over 80 percent of companies employing it for tasks including content generation, customer analysis, and predictive analytics. More than 50 percent of retailers view generative AI as a strategic advantage, while concerns about data privacy and costs have not significantly deterred investment.
AI adoption spans physical stores, digital platforms, and supply chain management, addressing challenges and driving efficiency. In physical retail, AI supports inventory management and adaptive advertising, while in supply chain operations, it improves efficiency for 58 percent of respondents and reduces costs by 45 percent. Investment in AI is set to grow, with 97 percent of respondents planning increased spending in the next fiscal year. As the retail and CPG sectors adapt to complex demands, AI is enabling businesses to improve decision-making, enhance employee productivity, and meet shifting customer expectations.
