Everywhere you turn, there is talk about artificial intelligence and how it will transform Americans’ lives. It will also revolutionize the companies that take advantage of the technology — and those names go beyond tech giants like Alphabet , Microsoft and Meta . In the retail sector alone, global revenue generated by AI will exceed $38 billion in 2030, up from an estimated $8.5 billion in 2023, according to a January report by Coresight Research . “Retail operations could undergo significant change over the next decade as retailers incorporate AI-powered technologies into storefronts and warehouses to increase efficiency and enhance personalization across various sales and marketing channels,” the report said. That could mean consumers in the not-so-distant future may not be bombarded with mass marketing materials from their favorite retailers — but instead shown products specifically tailored to their personal styles. Coresight estimates that by 2030, AI will enable businesses to identify customers’ needs based on their previous purchases and browsing patterns and create personalized marketing. “Each aspect of the shopping journey could be developed specifically for individual consumers in real time using hundreds of pieces of personalized content that speaks to each person’s unique interests and preferences,” the report said. And that’s just the start. Shoppers may eventually zip in and out of stores without ever having to wait on line and check out. Warehouse operations can be streamlined and merchandise placement in stores can be optimized. E-commerce should also see a boost, with AI driving more retail dollars online. Morgan Stanley estimates that in 2022, only 23% of the $4.3 trillion of U.S adjusted retail spending was online. The Wall Street firm sees an 8% compound annual growth rate for e-commerce’s slice of the spending between 2022 and 2025, analyst Brian Nowak said. Add in AI, which can drive better shopper experiences or better conversion, it could bump to 9% or possibly 10% CAGR, he said. “New AI-driven tools are going to lead to increased online consumer behavior, increased online consumer spend, and ultimately more dollars moving online, both out of consumer wallets, as well as into the online advertising markets,” Morgan Stanley wrote in a March note to clients. The big winner Typically, large companies will benefit from AI since they presumably have the money to invest in it. Walmart , for instance, is deploying AI and machine…
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