Retail leaders expect AI to evolve from a backend tool to a core business driver, with projected investment in the tech, beyond IT, growing by 52% this year.
That's a prime finding from IBM's "Embedding AI in Your Brand's DNA" study that polled 1,500 retail and consumer product leaders across 15 countries.
The study revealed "a major shift in AI investment strategies" across retail and consumer product companies, according to a press release on the findings.
Additional findings include:
- Executives want to expand into more sophisticated AI use cases, such as integrated business planning where they plan to increase usage by 82% in 2025 and 81% of surveyed executives are already using AI to a moderate or significant extent.
- Companies plan to dedicate more than 3.32% of annual revenue to AI-driven innovation, underscoring its pivotal role in transforming customer engagement and operations.
- 45% of employees will need AI-related upskilling within three years, reflecting the significant workforce transformation underway.
The report found 81% of surveyed executives and 96% of their teams are already using AI to a moderate or significant extent and executives indicate they want to expand into more sophisticated AI use cases, such as integrated business planning where they plan to increase usage by 82% in 2025
By 2025, retail and consumer products companies surveyed say they plan to allocate an average of 3.32% of their revenue to AI equivalent to $33.2 million annually for a $1 billion company.
"AI is no longer just a tool; it's a strategic imperative," Dee Waddell, global industry leader, consumer, travel and transportation Industries at IBM, said in the release. "Retail and consumer product companies are at a tipping point where embedding AI across their operations can help define not just productivity gains, but the future of brand relevance, engagement and trust."