- The report found that 81% of surveyed executives and 96% of
their teams are already using AI to a moderate or significant
extent
- 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
NEW
YORK, Jan. 7, 2025 /CNW/ -- A new global study
from the IBM (NYSE: IBM) Institute for Business Value found that
surveyed retail and consumer product executives are dramatically
shifting their focus toward artificial intelligence (AI), with
responses indicating that participants project spending outside of
traditional IT operations could surge by 52% in the next year. The
report, titled "Embedding AI in Your Brand's DNA," reveals how
brands are preparing for the next phase of AI-driven transformation
across the enterprise.
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.
This investment is set to span functions such as customer service,
supply chain operations, talent acquisition, and marketing
innovation, highlighting AI's expansion beyond traditional IT
applications. Key findings include:
- Rapid Adoption Across the Enterprise: The report
found that 81% of surveyed executives and 96% of their team are
already using AI to a moderate or significant extent. Executives
indicate they want to expand AI usage to more sophisticated use
cases, such as integrated business planning where they plan to
increase usage by 82% in 2025.
- Workforce Transformation: Executives surveyed
expect that 31% of employees will need to learn new skills to work
with AI in the next year, increasing to 45% within three years. AI
use in customer service, particularly for personalized responses
and follow-ups, could grow by 236% in the next 12 months when
compared to the prior year based on survey responses. Notably,
responses indicate that 55% of these improvements are expected to
involve human-AI collaboration, while only 30% would be fully
automated—highlighting the need to equip employees for seamless AI
integration.
- AI Ecosystem Platforms: Investment in ecosystem
platforms—tools that facilitate exchange of data and AI
models—could skyrocket. Respondants indicated they expect growth
from 52% today to 89% within three years as their companies look to
blend AI capabilities with business and technology partners to
accelerate innovation and drive efficiencies.
- AI Governance Gap: Despite 87% of surveyed executives
claiming to have clear AI governance frameworks, fewer than 25%
have fully implemented and continuously review tools to manage
risks like bias, transparency, and security. This reveals a
critical gap in operational oversight.
"AI is no longer just a tool; it's a strategic imperative," said
Dee Waddell, Global Industry Leader,
Consumer, Travel & Transportation Industries at IBM. "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."
The report emphasizes that successful brands can evolve from
viewing AI as merely a productivity booster to positioning it as a
core driver of enterprise innovation. Achieving this transformation
will require rethinking traditional governance and reskilling
strategies. Retailers should tailor AI initiatives to align with
their brand priorities and collaborate with strategic partners,
including start-ups and technology companies. Equally important is
breaking down silos between finance, technology, and business
leaders. By fostering cross-functional collaboration, these
stakeholders can jointly build strong business cases that
demonstrate how AI can help deliver a long-term competitive
advantage.
Connect with IBM at NRF 2025: AI is taking center
stage for IBM at NRF'25. Join us as we delve into how the
technology is enhancing everything from customer engagement and
personalization to operational efficiency. We'll share innovative
examples in marketing, supply chain management, and sustainability.
IBM industry experts will be at Booth #4639. Stay updated via our
NRF webpage. #NRF2025
For more information and to access the full report, visit
here.
Methodology
The IBM Institute for Business Value (IBM IBV), in cooperation
with Oxford Economics, surveyed 1,500 global retail and consumer
products executives in 15 countries in Q3 2024. 50% of the sample
represented retail industry and 50% represented consumer products
in nine countries in Q3 2024.
Participants were asked a range of questions in various formats
(such as multiple choice numerical and Likert scale). They were
asked about their organization's expectations, results, concerns,
and barriers for scaling or planning to scaleAI/Gen AI within the
enterprise and across their ecosystem partners.
To accomplish this, the IBM IBV ran a series of contrast
analyses, including pairwise comparisons and data classification
using hierarchical clustering highlighting results differences as
shown in this report. Significance level for all analyses was
set
at (p < 0.05) level.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and
consulting expertise. We help clients in more than 175 countries
capitalize on insights from their data, streamline business
processes, reduce costs and gain the competitive edge in their
industries. More than 4,000 government and corporate entities in
critical infrastructure areas such as financial services,
telecommunications and healthcare rely on IBM's hybrid cloud
platform and Red Hat OpenShift to affect their digital
transformations quickly, efficiently and securely. IBM's
breakthrough innovations in AI, quantum computing,
industry-specific cloud solutions and consulting deliver open and
flexible options to our clients. All of this is backed by IBM's
long-standing commitment to trust, transparency, responsibility,
inclusivity and service. Visit www.ibm.com for more
information.
Media Contact:
Kelsey Lazio
Global External Relations Lead, Consumer and Retail, IBM
Kelsey.lazio@ibm.com
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SOURCE IBM
