Retail and consumer product executives worldwide are intending to expand their artificial intelligence beyond traditional information technology applications, according to a global study conducted by the IBM Institute for Business Value.
AI is expected to be integrated into customer service, supply chain operations, talent acquisition, and marketing innovation. As per survey findings in the "Embedding AI in Your Brand's DNA" report, anticipated AI spending beyond the IT budget could soar by 52 percent in 2026.
As of this year, respondents indicated their intent to earmark an average of 3.32 percent of revenue for AI investment. In particular, AI use in customer service – especially for personalized responses and follow-ups – could skyrocket by 236 percent in the next 12 months compared to the previous year.
“AI is no longer just a tool; it's a strategic imperative. 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,” said Dee Waddell, IBM global industry leader – consumer, travel and transportation industries, in a statement.
The report revealed that 81 percent of the executives surveyed are using AI either moderately or significantly, with 96 percent of their teams doing so. Executives noted that they sought to bolster AI use in integrated business planning by 82 percent this year.
Respondents also indicated that they anticipated a boost in ecosystem platform investment from 52 percent to 89 percent within a three-year period as companies aim to incorporate AI capabilities with business and technology partners to accelerate innovation and spur efficiency. Such platforms enable the exchange of data and AI models.
In the process of expanding AI use, executives expected that 31 percent of employees must develop new AI-related work skills in 2026, with this percentage rising to 45 percent in the next three years. According to respondents, humans are set to collaborate with AI on 55 percent of these enhancements, with only 30 percent being fully automated.
Nonetheless, less than 25 percent of respondents have completely implemented and regularly review risk management tools geared towards addressing bias, transparency, and security, even though 87 percent of executives say they have clear AI governance frameworks.
To establish AI as a core enterprise innovation driver, traditional governance and reskilling strategies must be reconsidered, according to IBM. Moreover, barriers must be broken down between finance, technology, and business leaders and AI initiatives customized to align with brand priorities.
In the third quarter of 2024, the IBM Institute for Business Value surveyed 1,500 retail and consumer product executives across 15 countries in partnership with Oxford Economics. Half of the respondents hailed from the retail industry while the other half represented the consumer product industry in nine countries.