Smart checkout technology like Amazon Go’s will process nearly $400 billion of transactions within the next five years.
According to a new study from Juniper Research, smart checkout technologies which allow shoppers to avoid traditional checkouts are set to grow rapidly over the next few years.
This year smart checkout transactions, such as those made via “pay in isle apps” and portable barcode scanners, will reach $2 billion.
By 2025 this figure is set to rise dramatically to $387 billion as supermarkets continue to introduce the technology to provide a cheaper and more efficient business model.
It added that this technology will be largely confined to the convenience sector where implementation costs are lower.
Juniper also predicted that retailer will invest $23 billion into artificial intelligence by 2025 to drive the implementation of tools like smart checkout systems and chatbots, rising from just $5 billion this year.
“To compete with e-commerce disruptors who heavily rely on AI, traditional retailers must adopt AI rapidly to boost efficiency,” Juniper Research’s Nick Maynard said.
“If they fail to do so, they will face a highly commoditised retail market with an outmoded, uncompetitive business model.”