A new IBM survey highlights a dramatic pivot among retail and consumer product executives toward AI. According to the report, companies aim to increase their AI spending by 52% in areas beyond traditional IT operations over the next year.
By 2025, these businesses expect to dedicate an average of 3.32% of their revenue to AI initiatives—translating to $33.2 million annually for a company generating $1 billion in revenue. This expanded investment will span various functions, including customer service, supply chain management, talent acquisition, and marketing, indicating AI’s growing role across the enterprise.
“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 survey reveals that 81% of executives and 96% of their teams are already utilising AI to some extent, with plans to expand its use in integrated business planning by 82% by 2025.
In addition, AI will require a workforce shift. In the next year, 31% of employees will need new skills to work alongside AI, increasing to 45% within three years. AI usage in customer service, particularly for personalised interactions, is expected to grow by 236% over the next year. Importantly, 55% of these enhancements will involve human-AI collaboration, underscoring the need to upskill employees rather than fully automate tasks.
The survey also shows that investments in platforms that streamline data and AI model exchanges are projected to surge, with usage expected to jump from 52% today to 89% in three years. These platforms will allow companies to integrate AI with partners across business and technology sectors, accelerating innovation.
Despite 87% of executives claiming to have clear AI governance frameworks, less than 25% have fully implemented and regularly updated tools to manage risks such as bias, transparency, and security, indicating a significant governance gap.