In recent years, artificial intelligence (AI) has permeated every aspect of our lives, and businesses must quickly adapt to remain relevant in the highly competitive digital world. According to a global survey by the IBM Institute for Business Value, executives in the retail and consumer goods sectors recognize the importance of AI and predict a 52% surge in spending on non-traditional IT operations over the next year.
The report titled "Embedding AI into Brand DNA" is based on a survey of 1,500 global retail and consumer goods executives, exploring how brands can integrate AI into all aspects of their operations, including innovation, customer relationships, and business strategy. The survey shows that 81% of executives and 96% of their teams are already using AI, and looking ahead to 2025, they hope to expand into more complex AI applications. On average, these executives are willing to invest 3.32% of their revenue into AI, which amounts to $33.2 million for a company with an annual revenue of $1 billion.
Executives hope that AI will be integrated into their comprehensive business planning, expecting an 82% increase in usage by 2025. In the next 12 months, their top areas of focus for AI applications include marketing and customer experience, supply chain operations, IT, and security, with only 5% of respondents planning to cut their AI budgets, indicating strong confidence in the benefits of AI.
However, the skills gap in AI remains a significant challenge for its adoption, as many companies struggle to find the necessary talent for developing and implementing AI. The report notes that over the next year, 31% of employees will need reskilling or new skills to adapt to AI usage, and this figure is expected to rise to 45% in three years. Additionally, respondents mentioned that 55% of customer service improvements involve human-machine collaboration, with only 30% being fully automated, emphasizing the importance of human involvement when working alongside AI.
Furthermore, the survey revealed that investments in AI ecosystem platforms by businesses are expected to rise significantly. These platforms facilitate the sharing of data and AI models, and IBM predicts that companies will increasingly integrate AI capabilities with their business and technology partners to accelerate innovation and enhance efficiency.
While 87% of executives report having established a clear AI governance framework, fewer than a quarter of companies have fully implemented and continuously updated tools to address risks such as bias, transparency, and security. This highlights a significant gap in operational oversight. To bridge this gap, IBM recommends that businesses build trust in their internal AI usage before expanding to customer-facing use cases and communicate with customers about data collection and AI usage to further strengthen governance and protect brand integrity.
Key Points:
✨ 81% of executives and 96% of teams are already using AI and plan to expand its application by 2025.
💡 Executives expect that in the next year, 31% of employees will need reskilling to adapt to AI usage.
🔍 Despite 87% of executives establishing an AI governance framework, fewer than a quarter of companies have fully implemented tools to address risks.
