Retail CEOs are moving forward with generative AI.
A new survey of top executives indicates widespread interest in generative AI, although obstacles to implementation are common.
According to the latest annual IBM CEO Study, 62% of surveyed CPG CEOs and 58% of surveyed retail CEOs stated that competitive advantage will depend on who has the most advanced generative AI. This is up from 59% of CPG CEOs and 42% of retail CEOs who responded to the 2023 survey.
Looking at combined retail and CPG executive responses to questions about generative AI, the survey also revealed:
- Three-quarters of all surveyed CEOs say trusted AI is impossible without effective AI governance, but only 43% of retail and CPG CEOs say they have good AI governance in place.
- Close to seven in 10 (68%) retail and CPG respondents say their organization must take advantage of technologies that are changing faster than people can adapt.
- Almost two-thirds (65%) of retail and CPG respondents say they will take more risk than the competition to maintain competitive edge, with 45% of these respondents agreeing that the risk of falling behind is driving them to invest in some technologies before they have a clear understanding of the value. And 63% are pushing their organization to adopt generative AI more quickly than some retail and consumer products employees are comfortable with.
- While 58% of retail and CPG respondents have not yet assessed the impact on their employees, 52% are hiring for generative AI-related roles that didn’t exist in 2023.
Other findings
Interesting statistics from the full respondent group of CEOs across 26 industries (including retail and CPG) include:
- Four in 10 respondents plan to hire additional staff because of generative AI, although more than half (53%) say they are already struggling to fill key technology roles.
- Respondents expect 35% of their workforce will require retraining and reskilling over the next three years – up from just 6% in 2021.
- Close to six in 10 (57%) respondents say that cultural change is more important to becoming a data-driven organization than overcoming technical challenges.
- More than six in 10 (62%) respondents say they will take more risk than the competition to maintain competitive edge, with half (51%) agreeing that the risk of falling behind is driving them to invest in some technologies before they have a clear understanding of the value.
- Seven in 10 (71%) respondents are no further than generative AI piloting and experimentation, but half (49%) expect to be driving growth and expansion by 2026.
- Four in 10 (41%) respondents say they are willing to sacrifice operational efficiency for greater innovation.
- Only 36% of respondents are primarily funding their generative AI investments with net new IT spend, with the remaining 64% reducing other technology spend.
[IBM: AI can improve shopping experience]
Study methodology
The IBM Institute for Business Value, in cooperation with Oxford Economics, conducted interviews with 3,000 CEOs from over 30 countries and 26 industries from December 2023 through April 2024 as part of the 29thedition of the IBM C-Suite Study series.
