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With the rapid development of artificial intelligence, AI in retail has become a topic of discussion for every retailer and e-commerce seller.
In the past decade, retailers faced unprecedented pressure from growing competition, supply chain disruptions, and increasing customer needs.
Fortunately, retail AI saves them, reshaping the retail industry and consumer connection. Soon, AI trends in retail will be integrated more deeply, and AI will become the most important part of global retail.
So, how can you use it better? Let's dive in.
AI in retail is a new operational way to improve personalized customer experiences and the supply chain, through machine learning, computer vision, and others. When AI is used in retail stores, it drives the whole process from chatbots to inventory managers.
Based on GVR (Grand View Research), the global artificial intelligence in retail market size was estimated at USD 11.61 billion in 2024 and is expected to reach USD 14.49 billion in 2025. So, to seize this big market, improve profitability and customer satisfaction, retailers rush to adopt AI.
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We may not have achieved full automation where robots are running the entire retail industry, but AI is already streamlining many of its most time-consuming tasks.
According to NVIDIA’s second annual State of AI in Retail and CPG survey report in 2025, 89% of companies have optimized their business processes through AI, and almost all of them have enjoyed the "AI dividend."
OK, let’s look at how AI can be used in retail.
One of the most important and welcomed processes of AI in retail is personalizing product recommendations. This function not only improves conversions, but also behaves customer satisfaction.
This is because AI algorithms will analyze browsing behavior, purchase history, customer preferences, cart items, and so on to recommend tailored products for consumers that meet their preferences.
In today’s competitive retail market, Amazon's "Interest" feature is a successful example of personalizing product recommendations. By adding its vast online store, this can change customers' shopping experience, helping them find their loved items quickly and easily.
All right, inventory management has been a headache for retailers for a long time. But AI changes it. The machine learning models of AI can analyze historical sales data and promotional calendars with seasonality changes, market trends, and other factors to forecast demand. And, retail AI can achieve timely adjustment of dynamic inventory by automatically restocking and delisting.
EJET Procurement, as explorers in the field of AI technology, our Amazon FBA Prep service includes demand planning and real-time inventory solutions, helping keep products in stock and your retail business running smoothly.
With the development of the Internet, personal information security and electronic fraud have become a big challenge. Fortunately, AI minimizes the risks of counterfeit or non-compliant products by instantly flagging unusual activity.
AI fraud detection tools can offer crucial help when wholesale sourcing, especially in China. The large number of manufacturers in China leads to a wide range of product quality issues, making it difficult to identify reliable suppliers with the naked eye. You can rely on EJET's verified supplier network. We constantly monitor suppliers from all over the world in real time to ensure that there is no possibility of fraud.
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Dynamic pricing and targeted promotions are an effective way to attract customers and improve profits. And it's hard to come true because it requires strong algorithms and basics before the AI age.
But now, every retail company can use AI tools for dynamic pricing and targeted promotions. AI pricing engines achieve it based on sales data, inventory levels, feedback loops, etc, improving revenue and competitiveness.
In the past, consumers often had to struggle to find the products they wanted among thousands of SKUs and were unsure about the online clothes fit, which exhausted their patience.
Now, visual search and virtual try-ons are out of nowhere with AI in retail. For Amazon Lens as an example, consumers can find wanted items by a product photo or barcode scan with this AI search tool quickly. And, through virtual try-ons, consumers can visualize clothes and other products, which reduces item return rates and increases customer satisfaction.
The last use case is a chatbot. I guess I don't need to introduce too much. AI chatbots offer 24/7 service to answer customers' problems, which reduces costs and increases efficiency.
As China sourcing experts with more than 20 years of experience, we have worked with several global retail owners. We combined Adyen Retail Report to predict the retail trends in the AI age.
Have you noticed that a large proportion of people do not open Google or Amazon first when searching for information or products, but generative AI products? They ask AI everything that they want to know.
Yes, now AI plays a more and more important role in helping customers discover new products. With the just-ended Prime Day, GenAI traffic to U.S. retail sites increased by 3,300% through chatbots in 1 year.
We find:
• 58% of shoppers say AI inspires purchases.
• 56% use AI to find unique brands.
AI in retail isn't just for youngers, older people are experiencing it with voice search, visual try-ons, and other functions. We find although there are only 16% Boomers who use AI, its usage grew 60% YOY.
A Statista report shows 60% of global investors plan to increase AI spending in retail even if only 42% retailers can offer seamless AI retail processes. AI is reshaping every stage of the retail journey from chatbots to predicting trends.
Yes, today, online shopping is highly developed, but stores still win. 46% of Gen Z choose retailers that let them shop on media, but more prefer in-store shopping. Touching products is the biggest factor. So, online shopping with AI can't replace physical stores, it's transforming the purchase model.
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As the world's leading sourcing agent, EJET Procurement offers smarter solutions with AI in retail. Whether China buying agent, China sourcing agent, or China Procurement agent solution, we provide the most advanced AI services for you in product sourcing.
• Diverse product procurement and flexible customization options: EJET's supplier network via AI filtered 3000 + trusted Chinese vendors, most of whom offer customization options.
• Inventory management solutions based on business models: A full and smooth supply chain is the biggest advantage of EJET in a long time. Now, combining with AI technology, our systems integrate well with inventory management, trending forecasting, and other functions.
• Efficient production process and strict quality inspection: EJET offers multi-stage quality inspections, including pre-purchasing, during production, and pre-shipment to ensure every product meets your requirements.
AI in retail is becoming the hottest trend you can't deny. You'd better make smart reforms to your company to seize this huge business opportunity as soon as possible.
Ready to share the AI solution with EJET Procurement? Please get in touch with us to start sourcing smarter today!
A: Use cases include personalizing product recommendations, inventory management, dynamic pricing, fraud detection, chatbots, virtual try-ons, etc.
A: 5 years later, AI will become more deeply integrated in retail. Most will achieve real-time supply chain optimization with AI.
A: AI can optimize the supply chain in inventory management, demand forecasting, automate sourcing, and so on.
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