The value of transactions processed by smart checkout technologies will hit $387 billion in 2025, up from $2 billion in 2020, according to Juniper Research.

This will be driven by retailers seeking sustainable business models in the wake of the Covid-19 pandemic.

At the same time, however, innovation will be limited to the convenience segment, where product lines are simpler and implementation costs are lower. These roll-outs will take place at the larger retail chains that can afford the significant investment costs involved.

Artificial intelligence

The use of AI, including smart checkout systems and chatbots, will be critical in ensuring that retailers can deliver a compelling omnichannel experience to consumers. This will lead to investments of over $23 billion by retailers in AI by 2025, up from just over $5 billion in 2020.

Juniper Research’s Nick Maynard says: “To compete with e-commerce disruptors who heavily rely on AI, traditional retailers must adopt AI rapidly to boost efficiency. If they fail to do so, they will face a highly commoditised retail market with an outmoded, uncompetitive business model.”

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