What: Gartner study reveals modest AI productivity gains with only 37% of traditional AI users and 34% of GenAI users reporting high improvements, challenging widespread optimism about immediate impact.

Why it is important: This reality check on AI productivity gains helps business leaders make more informed decisions about AI investments and implementation strategies, particularly crucial for the retail sector where technology spending must demonstrate clear returns.

Gartner's comprehensive survey of 724 business professionals reveals a sobering reality about AI's impact on productivity, with only 37% of traditional AI users and 34% of GenAI users reporting significant gains. This finding challenges the prevalent optimism surrounding AI implementation and points to what some experts call the "AI productivity paradox." While AI shows promise in specific segments like call centers, broader organizational benefits remain elusive. The research highlights several factors contributing to limited productivity gains, including inflated expectations, implementation delays, and measurement challenges. Marketing teams demonstrate the highest success rates, while legal and HR functions lag behind, indicating the importance of context-specific applications. The study suggests that successful teams approach AI with a learning mindset rather than focusing solely on job displacement concerns. For CFOs and business leaders, this indicates the need to reset expectations and focus on creating internal conditions that enable AI to deliver its full potential.

IADS Notes: Recent market research reveals a complex landscape of AI implementation in retail, with significant gaps between investment and actual productivity gains. According to BCG's "From potential to profit" in January 2025 , only 25% of companies report meaningful value from their AI initiatives, despite high investment levels, with successful companies focusing on fewer, more strategic use cases. A Salesforce study published in Retail Dive in March 2024  highlights a critical challenge: while 93% of retailers use AI, nearly half struggle with data integration and accessibility, potentially explaining the modest productivity gains. Bain & Company's research, reported in WWD in November 2024 , adds another dimension, revealing that consumer awareness and trust remain significant hurdles, with many shoppers unaware they're using AI-powered features. This aligns with AlixPartners' findings published in April 2024 , emphasizing that successful AI implementation requires focusing on practical applications with clear business benefits rather than following technological hype. These insights collectively suggest that achieving meaningful productivity gains requires a more measured, strategic approach to AI implementation, with particular attention to data integration, consumer trust, and clear business outcomes.

CFOs should reset expectations about AI’s impact on workforce productivity and headcount

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