IBM Study: AI Spending Expected to SurgeIBM Study: AI Spending Expected to Surge 52% Beyond IT Budgets as Retail Brands Embrace Enterprise-Wide Innovation
IBM announced that their Institute for Business Value found that surveyed retail and consumer product executives are dramatically shifting their focus toward artificial intelligence, 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:
"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. Source: IBM media announcement |