AI spending expected to exceed 52% beyond IT budgets, study says
Most workers already use AI moderately, significant extent, report says
By Mucahithan Avcioglu
ISTANBUL (AA) - A report by the IBM's Institute for Business Value (IBV) on Tuesday said retail and consumer product executives surveyed are significantly shifting attention to artificial intelligence (AI), with respondents predicting a 52% increase in spending outside traditional IT operations in the coming year.
By 2025, retail and consumer products companies surveyed said they plan to allocate an average of 3.32% of their revenue to AI – an equivalent of $33.2 million annually for a $1 billion company.
The report indicated that 81% of surveyed executives and 96% of their teams already use AI at moderate or significant levels.
Surveyed executives anticipate that 31% of employees will need to acquire new skills for working with AI in the next year, rising to 45% in the next three years.
Investment in ecosystem platforms and solutions enabling the exchange of data and AI models, could see a significant jump.
"AI is no longer just a tool; it's a strategic imperative," said Dee Waddell, a global industry leader, consumer, travel and transportation industries leader at the IBV.
The report said successful brands can shift from treating AI as a productivity tool to recognizing it as a primary catalyst for enterprise-wide innovation. Accomplishing the shift will demand reimagining traditional governance models and adopting new reskilling approaches.
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