What: BCG's AI Maturity Matrix reveals only five economies are fully AI-ready, highlighting urgent need for global retail industry transformation as AI spending projected to reach USD 632 billion by 2028.

Why it is important: This comprehensive assessment of 73 economies' AI readiness provides crucial insights for retail industry investments, market entry strategies, and technological infrastructure development, while identifying critical gaps in global AI preparedness that could impact retail transformation.

BCG's groundbreaking AI Maturity Matrix assessment of 73 global economies reveals a stark divide in AI readiness, with only five nations - Canada, Mainland China, Singapore, the UK, and the US - achieving pioneer status. The study introduces the ASPIRE framework, evaluating economies across six crucial dimensions: Ambition, Skills, Policy and regulation, Investment, Research and innovation, and Ecosystem. The findings show that over 70% of assessed economies score below the halfway mark in critical areas such as ecosystem participation, skills, and R&D. The research projects worldwide AI spending to reach USD 632 billion by 2028, indicating massive transformation potential. The matrix identifies six distinct adoption archetypes, from AI pioneers to emergents, providing a comprehensive roadmap for economic development and technological integration. This stratification has significant implications for global retail operations, market entry strategies, and technological investment decisions, particularly as economies work to bridge the gap between AI exposure and readiness.

IADS Notes:

Recent retail industry developments align closely with BCG's findings. In October 2024, Walmart's implementation of AI-powered personalised homepages  exemplified how AI pioneers are leveraging their technological advantage. This mirrors the broader industry transformation noted in January 2024, where retail entered a new paradigm with three significant trends: Perceptive AI, Consumer Guardianship, and Eco-Stewardship . The economic impact is substantial, with global online retail sales projected to reach USD 6.8 trillion by 2028. The competitive landscape continues to evolve, as evidenced by emerging market dynamics in Southeast Asia  and Chinese brands moving from low-cost to premium products. These developments underscore BCG's assertion that AI readiness will increasingly determine economic competitiveness and market leadership.

BCG report: The AI Maturity Matrix

70% of economies are underprepared for AI Disruption, BCG Press Release