AI Expansion Projects Likely to Surge in CPG: IBM

Companies said they expect to allocate an average of 3.32% of their revenue to artificial intelligence this year.

Retail and CPG executives expect to expand their use of AI throughout all areas of their business next year, according to a global study from the IBM Institute of Business Value, Embedding AI in Your Brand’s DNA, which reports spending on the technology outside of IT operations could increase by 52%.

IBM worked with Oxford Economics to survey 1,500 executives across 15 countries in Q3 2024 and found that 81% of the respondents and 96% of their teams are already moderately or significantly using AI. While adaptation is already quite high, executives believe that 31% of employees will need to learn new skills in order to work with AI next year and that 45% will require additional training within the next three years.

The surveyed companies said they expect to allocate an average of 3.32% of their revenue to artificial intelligence this year, using the technology in marketing, talent acquisition, supply chain operations, and customer service. That last function could increase by 236% within the next 12 months as companies seek to use it to give customers personalized responses.