Recently there’s been a rush of AI announcements and acquisitions by major retailers: Just this week, Etsy acquired Blackbird to enhance its search functionality through AI, followed the very next day by Amazon acquiring Angel.ai (formerly GoButler), another AI-powered searching tool. And earlier this month, e-commerce unicorn Houzz (see our full unicorn tracker here) announced a deep learning initiative to help users find and buy products by clicking on images.
Using CB Insights data, we dove into the wide array of AI startups focused on retailers and e-commerce businesses, including AI-powered personal shopping apps, natural language processing and image recognition tools for shopping websites, predictive inventory allocation tools, and more.
The area is emerging, and most companies focused on retail AI remain in the very early stages. However, we have seen several larger deals in recent months. ViSenze, which lets users search e-commerce sites by image or find visually similar items, raised a $10.5M Series B in September, while Trax Image Recognition, which visually tracks the performance of goods on grocery shelves, raised a $40M Series C in June. Several startups are backed by top investors from our smart money list, such as search optimization tool Zettata, backed by Accel Partners, and predictive customer targeting platform AgilOne, backed by Sequoia Capital.
While there are numerous other AI startups focused broadly on personalized marketing and ad targeting, we limited this market map to startups whose core focus is retail and e-commerce. The startups in this graphic have raised roughly $650M in total disclosed equity financing. Scroll down to view the graphic, category explanations, and a full company list with select investors.
Retail AI market map
See the market map below. This market map is not meant to be exhaustive of startups in the space. Graphic includes private, independent companies only.
We divided our market map into the 12 categories listed below:
Real-time product targeting – Machine learning to present online shoppers with personalized product recommendations. These companies typically update e-commerce websites in real time to present product selections best suited to the individual shopper.
Real-time pricing & incentives – Machine learning to adjust pricing, sale options, rewards, and coupons in real time to try to push hesitant shoppers toward conversion.
Natural language search – Algorithms that use natural language processing to improve search functionality in e-commerce websites.
Visual search – Image recognition platforms that help e-commerce websites let visitors search by image, instead of text, and match relevant products to specific images.
In-store visual monitoring – AI-powered software that analyzes photo and visual content of store shelves to help brands track how their products are stocked and promoted in real time.
Conversational commerce – Chat software and chatbots focused on helping shoppers make purchases in a conversational text format using natural language processing.
Predictive merchandising – Big data analysis to optimize purchasing, allocation, and product assortment across stores and e-commerce. The aim is to better predict demand in different geographies to avoid waste and prevent inventory from going out of stock.
Sizing & styling – AI-powered software to help retailers integrate improved product sizing and outfit-building tools into their websites.
Multichannel marketing – Startups using AI to create targeted marketing campaigns across desktop, mobile, email, and other digital channels. Inclusion limited to startups focused specifically on e-commerce.
Integrated online & in-store analytics – Startups that combine both digital and physical store analytics to help retailers better understand their customers.
Location-based marketing & analytics – Startups that combine digital and physical store analytics, while also integrating beacon technology to track shoppers’ locations.
Originally appearing on CB Insights “Don’t You Look Smart: 45 Artificial Intelligence Startups Targeting Retail In One Infographic”: https://www.cbinsights.com/blog/ai-retail-smart-shop-startups/