Artificial Intelligence in Retail and CPG: 2025 Trends
Introduction
Artificial intelligence is rapidly becoming the cornerstone of innovation in the retail and consumer packaged goods (CPG) industries. Forward-thinking companies are using AI to reimagine their entire business models, from in-store experiences to omnichannel digital platforms, including ecommerce, mobile and social channels.
State of AI in Retail and CPG
NVIDIA’s second annual "State of AI in Retail and CPG" survey provides insights into the adoption, investment, and impact of AI, including generative AI; the top use cases and challenges; and a special section this year examining the use of AI in the supply chain. It’s an in-depth look at the current ecosystem of AI in retail and CPG, and how it’s transforming the industries.
Key Highlights
- 89% of respondents said they are either actively using AI in their operations or assessing AI projects, including trials and pilots (up from 82% in 2023)
- 87% said AI had a positive impact on increasing annual revenue
- 94% said AI has helped reduce annual operational costs
- 97% said spending on AI would increase in the next fiscal year
Generative AI in Retail Takes Center Stage
Generative AI has found a strong foothold in retail and CPG, with over 80% of companies either using or piloting projects. Companies are harnessing the technology, especially for content generation in marketing and advertising, as well as customer analysis and analytics.
Top Use Cases for Generative AI
- Content generation for marketing (60%)
- Predictive analytics (44%)
- Personalized marketing and advertising (42%)
- Customer analysis and segmentation (41%)
- Digital shopping assistants or copilots (40%)
AI Across the Retail Landscape
AI use cases have proliferated across nearly every line of business in retail, with over 50% of retailers using AI in more than six different use cases throughout their operations.
AI in the Supply Chain
Managing the supply chain has always been a challenge for retail and CPG companies, but it’s become increasingly difficult over the last several years. Companies are feeling the pressure, with 59% of respondents saying that their supply chain challenges have grown in the last year.
Conclusion
The retail and CPG industries are at the forefront of the AI revolution, with leading companies harnessing advanced technologies to enhance efficiency and drive revenue. The findings from the latest survey underscore a pivotal shift in how businesses operate in a complex new landscape, and will be a key driver of innovation and growth in the years to come.
Frequently Asked Questions
Q: What is the state of AI in retail and CPG?
A: According to the survey, 89% of respondents are using AI in their operations or assessing AI projects, and 97% expect to increase spending on AI in the next fiscal year.
Q: What are the top use cases for generative AI in retail?
A: The top use cases are content generation for marketing, predictive analytics, personalized marketing and advertising, customer analysis and segmentation, and digital shopping assistants or copilots.
Q: How is AI impacting the supply chain?
A: AI is helping to improve operational efficiency and throughput (58%), reduce supply chain costs (45%), and meet shifting customer expectations (42%).
