Nearly 90% of Retailers Embrace AI, NVIDIA Survey Reveals

Artificial Intelligence (AI) is swiftly becoming a pivotal force driving innovation within the retail and consumer packaged goods (CPG) sectors. Companies that are forward-thinking are leveraging AI to revolutionize their entire business models, spanning from in-store experiences to comprehensive digital platforms that include ecommerce, mobile, and social channels. This technological surge is not only transforming advertising, marketing, and customer engagement but also optimizing supply chain operations. By integrating AI, retailers and CPG brands are not merely adjusting to changes but are actively shaping the future landscape of commerce.

NVIDIA has recently released its second annual “State of AI in Retail and CPG” survey, which offers insightful data on the adoption, investment, and impact of AI, including generative AI. This survey delves into the most common use cases, challenges faced by the industry, and includes a special focus on AI’s role in the supply chain. The survey provides a comprehensive overview of the current AI ecosystem within retail and CPG and highlights how these industries are being transformed.

### Key Findings from NVIDIA’s Survey

The survey gathered responses from hundreds of professionals within the industry, and here are some of the key highlights:

1. A significant 89% of respondents indicated that they are either actively utilizing AI in their operations or are in the process of evaluating AI projects, including trials and pilots. This marks an increase from 82% in the previous year.

2. An impressive 87% of those surveyed stated that AI had a positive effect on increasing their annual revenue.

3. A remarkable 94% reported that AI has contributed to a reduction in their annual operational costs.

4. A staggering 97% of respondents expressed their intent to increase spending on AI in the upcoming fiscal year.

### Generative AI: Leading the Charge in Retail

Generative AI is making significant inroads in the retail and CPG sectors, with over 80% of companies currently utilizing or experimenting with this technology in various projects. The technology is particularly being employed for content creation in marketing and advertising, as well as for customer analysis and analytics.

Reflecting on the previous year’s survey, more than 50% of retailers view generative AI as a strategic technology that will offer a competitive edge in the market. The primary use cases for generative AI in retail include:

1. Content generation for marketing (60%)

2. Predictive analytics (44%)

3. Personalized marketing and advertising (42%)

4. Customer analysis and segmentation (41%)

5. Digital shopping assistants or copilots (40%)

Despite some concerns regarding data privacy, security, and implementation costs of generative AI, these issues have not significantly dampened the enthusiasm of retailers. A resounding 93% of respondents revealed plans to boost their generative AI investments in the coming year.

### The Pervasive Influence of AI Across Retail

AI applications are expanding across nearly every facet of retail operations, with more than half of retailers deploying AI in over six different use cases within their businesses.

In physical retail environments, the top three use cases are inventory management, analytics and insights, and adaptive advertising. For digital retail, key applications include content creation for marketing and advertising, as well as hyper-personalized recommendations. In the back office, customer analysis and predictive analytics are the leading use cases.

AI’s impact on retail and CPG is profound, with enhanced insights and decision-making cited as a top benefit by 43% of survey respondents, while 42% noted improved employee productivity.

One of the most common challenges retailers faced in 2024 was a lack of user-friendly and explainable AI tools. This underscores the need for more intuitive software and solutions, particularly those related to generative AI and AI agents, to facilitate easier adoption and understanding of AI solutions.

### AI’s Role in Supply Chain Optimization

Managing the supply chain has always been a formidable challenge for retail and CPG companies, and recent global events coupled with evolving consumer preferences have added to the complexity. According to the survey, 59% of respondents acknowledged an increase in supply chain challenges over the past year.

To address these challenges, companies are increasingly turning to AI, and the impact of these solutions is becoming evident:

1. 58% reported that AI is aiding in improving operational efficiency and throughput.

2. 45% are leveraging AI to reduce supply chain costs.

3. 42% are utilizing AI to meet evolving customer expectations.

The investment in AI for supply chain management is poised for growth, with 82% of companies planning to boost their spending in the next fiscal year.

As the retail and CPG industries continue to embrace AI’s transformative power, the findings from the latest survey highlight a pivotal shift in business operations within these complex domains. Leading companies are adopting advanced technologies such as AI agents and physical AI to enhance efficiency, drive revenue, and establish themselves as frontrunners in innovation. This adoption is helping redefine the future of retail and CPG.

For those interested in a more in-depth examination of these findings, the “State of AI in Retail and CPG: 2025 Trends” report is available for download. Additionally, those looking to explore NVIDIA’s AI solutions and enterprise-level platforms for retail can do so through their dedicated portal.

In conclusion, the integration of AI in retail and CPG is not just a trend but a fundamental shift that is reshaping the industry. By understanding these developments, businesses can better position themselves to thrive in an increasingly AI-driven world.
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