IBM Study: Retail Companies Will Allocate 3.32 Percent Revenue For AI In 2025

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JAKARTA - IBM Institute for Business Value launched a new study entitled "Embedding AI in Your Brand's DNA," to see how various brands are preparing for the AI-based transformation phase.

The study found that by 2025, retail companies and consumer products surveyed plan to allocate an average of 3.32 percent of their revenue for AI.

Based on the survey results, it shows that 1,500 retail executives and global consumer products in 15 countries project spending outside traditional IT operations to increase by 52 percent next year.

Furthermore, the report found that 81 percent, surveyed and 96 percent of their teams had used AI at a moderate or significant level.

The executives expressed their desire to expand the use of AI with more complex implementations, such as integrated business planning, with plans to increase usage by 82 percent by 2025.

"AI is now a strategic necessity, and we see a strong commitment in various Indonesian organizations spread across the industry to adopt AI," said Roy Kosasih, President Director at IBM Indonesia in a written statement.

Roy also said that retail companies and consumer products around the world had been experimenting with AI and saw the benefits brought by AI's embedded.

"Not only for increased productivity, but also for increasing relevance, engagement, and brand trust," he explained.