Global retail giants plan 52% AI investment surge: IBM

NEW YORK, UNITED STATES — A recent study by IBM, titled “Embedding AI in Your Brand’s DNA,” reveals that retail and consumer product leaders globally are preparing to escalate their AI investments.
The study surveyed 1,500 executives across 15 countries, indicating a 52% investment growth in AI technologies outside the traditional IT sphere within the next year.
AI’s broadening horizons
According to the study, 81% of executives are already harnessing AI, with plans to amplify its use in integrated business planning by 82% come 2025.
“AI is no longer just a tool; it’s a strategic imperative,” said Dee Waddell, global industry leader, consumer, travel and 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.”
Workforce and operational transformation
The IBM report also sheds light on the future workforce requirements, with an anticipated need for AI-related skills in 45% of employees over the next three years. This aligns with the broader strategic integration of AI across various business operations to enhance customer engagement and innovate service delivery.
Executives project that by 2025, companies will allocate, on average, 3.32% of their revenue towards AI initiatives, equating to $33.2 million annually for a $1 billion company. This investment is expected to pioneer not only productivity gains but also substantial revenue growth, with an estimated 133% increase from 2023 to 2027.
AI could achieve century of progress in just 5 years
Tech leaders at the World Economic Forum in Davos delivered predictions about artificial intelligence’s rapid advancement and its potential to revolutionize human progress at an unprecedented pace.
Anthropic CEO Dario Amodei expressed increased confidence that AI systems will surpass human capabilities across most tasks.
“It is my guess that by 2026 or 2027 we will have AI systems that are broadly better than almost all humans at almost all things,” said Amodei. He noted that current AI models are already performing at PhD-student levels in mathematics, programming, and biology.