What: One-third of global companies plan significant AI investments in 2025, with retail leading adoption despite only 25% currently reporting meaningful value.

Why it is important: The contrast between high investment plans and low current value realisation highlights a critical implementation gap that industry leaders must address to remain competitive.

BCG's latest AI Radar survey reveals a significant commitment to artificial intelligence investment, with one in three companies planning to allocate over USD 25 million to AI initiatives in 2025. This substantial investment comes at a crucial time when 75% of executives rank AI as a top strategic priority, yet only a quarter report meaningful value from their current AI initiatives. Leading companies are distinguishing themselves by focusing their AI investments on core functions and new offerings, allocating more than 80% of their resources to these areas. These leaders are also taking a more focused approach, prioritising an average of 3.5 use cases compared to 6.1 for other companies, resulting in 2.1 times greater anticipated ROI.

The survey notably challenges common workforce concerns, with 68% of executives expecting to maintain current staffing levels while focusing on productivity enhancement and upskilling. The implementation of autonomous agents is gaining particular attention, with 67% of executives considering these AI systems as part of their transformation strategy. However, significant challenges remain, including data privacy, security concerns, and the need for improved AI cybersecurity measures, with 76% of executives acknowledging room for improvement in this area.

IADS Notes: BCG's latest findings about AI investment plans align with significant developments observed in the retail sector. As reported in mid-2024, the industry emerged as a leader in AI deployment, with nearly half of retailers seeing increased revenue from their initiatives . Consumer adoption has followed, with a dramatic 304% increase in AI-tool-directed traffic . The focus on autonomous agents gained momentum when Walmart demonstrated impact by processing 850 million product data points .

However, late-2024 research revealing that retailers still lose 4.5% of gross sales due to inefficiencies explains the drive for substantial AI investments. The optimistic workforce outlook is particularly significant, suggesting AI is transforming rather than replacing jobs, focusing on enhanced productivity while maintaining employment levels.

From potential to profit: closing the AI impact gap

AI radar 2025