90% of retail businesses are already using AI

15 Sep 2025

Both traditional and generative AI have been implemented in supply chain processes

Most executives in retail and consumer goods companies are planning widespread adoption of artificial intelligence (AI) in 2025. This is one of the key findings of Embedding AI in your brand’s DNA, a study by the IBM Institute for Business Value (IFBV). Based on a survey of 1,500 leading executives worldwide, the report reveals that AI integration is accelerating across organisations.

According to IBM IFBV data, both traditional and generative AI have reached every business area, including the supply chain, procurement, finance, operations, IT, customer service and marketing. The team’s experts say the time is now to harness the full power of AI to improve process efficiency, generate new business models and ecosystems and deliver innovative experiences for employees and customers. Nearly all industry executives are turning to AI to drive innovation in products and services (89%) and business models (85%), while 54% expect this technology to play a role in operational innovations.

AI is leveraged by 88% of businesses for demand forecasting and 81% for inventory and order management

An AI-centric brand must be able to leverage this technology to transform its supply chain, production, finance and regulatory compliance operations. This process overhaul involves moving from isolated AI use cases to orchestrating the tool across multiple business areas. One example is the use of AI in warehouse management.

Many organisations are still in the early stages of AI adoption and currently apply it to just one area:

  • 88% use it moderately or extensively for demand forecasting.
  • 87% apply it for HR help desks.
  • 84% have integrated it into IT support and issue remediation.
  • 84% use it to create and oversee sales promotions.
  • 81% leverage it for inventory and order management.
  • 80% have incorporated it into production processes.

These rapid changes can have an immediate impact on day-to-day operations. However, companies are aiming to develop more advanced AI applications throughout 2025. This will lead to multi-stakeholder use cases that require external collaboration, more complex system integrations and greater human oversight and intervention.