UK AI in Retail Market

UK AI in Retail Market Overview:

The UK AI in retail market size reached USD 466.99 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,201.19 Million by 2033, exhibiting a growth rate (CAGR) of 18.80% during 2025-2033. The market is driven by increasing innovations in technology that enhance retail operations and customer experiences, along with the expanding e-commerce industry, which is catalyzing the need for seamless shopping interactions in the UK.

UK AI in Retail Market Trends:

Rising Innovations in Technology

Technological progress is allowing retailers to adopt innovative solutions that enhance user experiences, optimize operations, and refine decision-making processes across different sectors of business. Businesses are utilizing machine learning (ML) algorithms to analyze consumer data instantaneously in order to comprehend their purchasing behaviors and preferences. Retailers are utilizing natural language processing (NLP) to improve user interactions through chatbots and virtual assistants, offering rapid support and tailored suggestions. In addition to this, companies are adopting cloud computing solutions, enabling them to efficiently store and manage large amounts of data. Businesses are employing computer vision technology to enhance in-store experiences, thereby positively impacting the market within the nation. Leading retailers are partnering with tech firms to incorporate artificial intelligence (AI) solutions that enhance customer experiences, streamline operations, and provide valuable insights. For example, Currys plc, a UK-based multinational retailer, collaborated with Accenture and Microsoft in 2024 to improve its cloud technology framework. This partnership will allow Currys to utilize cutting-edge AI technologies to enhance its operations and improve the shopping experience for both customers and staff. These collaborations are resulting in customized solutions that tackle particular retail issues, thus enhancing efficiency and profitability.

Growing Dependence on E-Commerce

The increasing reliance on e-commerce fueled by the surging appetite for online shopping is boosting market expansion in the UK. Consumers are choosing online platforms due to their ease of use, wide variety of products, and attractive pricing. This is encouraging retailers to invest heavily in their digital frameworks to greatly enhance user experiences, streamline logistics, and offer tailored services. Along these lines, advancements such as mobile shopping applications, safe payment methods, and streamlined delivery systems are simplifying access for users to products and services from the convenience of their homes. The rise of social commerce, in which brands utilize social media platforms to boost sales, is actively involving individuals and improving brand visibility in a competitive market. Retailers are employing advanced data analytics to obtain greater understanding of consumer shopping habits and preferences, while implementing omnichannel strategies that seek to unify online and brick-and-mortar shopping experiences. Highlighting the importance of fostering a unified experience is vital, given that the increasing number of e-commerce platforms enables smooth interactions across every retail channel. As per the IMARC Group's report, the UK e-commerce sector is expected to show a growth rate (CAGR) of 18.50% from 2024 to 2032, highlighting the essential importance of innovation and flexibility in addressing changing needs.

UK AI in Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on component, technology, type, and application.

Component Insights:

• Solution
• Service

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and service.

Technology Insights:

• Machine Learning
• Natural Language Processing
• Chatbots
• Image and Video Analytics
• Swarm Intelligence

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes machine learning, natural language processing, chatbots, image and video analytics, and swarm intelligence.

Type Insights:

• Online Retail
• Offline Retail

The report has provided a detailed breakup and analysis of the market based on the type. This includes online retail and offline retail.

Application Insights:

• Customer Relationship Management (CRM)
• Supply Chain and Logistics
• Inventory Management
• Product Optimization
• In-Store Navigation
• Payment and Pricing Analytics
• Virtual Assistant
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes customer relationship management (CRM), supply chain and logistics, inventory management, product optimization, in-store navigation, payment and pricing analytics, virtual assistant, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK AI in Retail Market News:

• In June 2024: Waitrose, the food retail division of the John Lewis Partnership, extended its partnership with Blue Yonder, an independent subsidiary of Panasonic, by integrating the advanced AI-driven forecasting capabilities to improve product availability in its stores.
• In May 2024, Sainsbury's, the second-largest supermarket chain in the UK, announced a five-year strategic partnership with Microsoft to enhance its Next Level Sainsbury's strategy, utilizing AI to improve in-store and online shopping experiences.

UK AI in Retail Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK AI in retail market performed so far and how will it perform in the coming years?
• What is the breakup of the UK AI in retail market on the basis of component?
• What is the breakup of the UK AI in retail market on the basis of technology?
• What is the breakup of the UK AI in retail market on the basis of type?
• What is the breakup of the UK AI in retail market on the basis of application?
• What is the breakup of the UK AI in retail market on the basis of region?
• What are the various stages in the value chain of the UK AI in retail market? 
• What are the key driving factors and challenges in the UK AI in retail market?
• What is the structure of the UK AI in retail market and who are the key players?
• What is the degree of competition in the UK AI in retail market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK AI in retail market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK AI in retail market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK AI in retail industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.