UK Retail and CPG Sectors emerge as AI leaders

London, October 16th, 2024 - The UK’s Retail and CPG sectors emerge as AI leaders as a global study[1] finds today that that almost a third (30%) of Retail and CPG organisations in the UK are implementing AI technologies across their business, which is over double the global average (12%).

At the same time, the sectors also registered a very high interest in AI adoption, with almost three quarters (74%) of executives identifying as either AI Experimenters (37%) or AI Enthusiasts (37%), second only to the UK’s Financial Services sector. 

The BearingPoint study of over 700 C-Suite level executives globally, including 129 executives from retail and consumer packaged goods organisations (including luxury goods) with over €500 million in revenues, also found that three quarters (73%) of UK Retail and CPG organisations[2] have a well-documented strategy for AI adoption, supported by regular training on AI initiatives (73%). The industries also demonstrate a high level of data readiness, with 77% of executives stating they are mostly ready in terms of data availability and quality, and 10% indicating they are fully ready.

While UK Retail and CPG organisations have emerged as AI leaders, executives in these sectors are concerned about data privacy (80%) and bridging the skills gap (77%).

Despite these challenges, the UK’s Retail and CPG sectors are already demonstrating the opportunities for growth in AI adoption.  Our research shows that Retail and CPG organisations are focusing heavily on enhancing customer experience, alongside other goals such as sustainability and social responsibility — uniquely prioritising these over more traditional goals like increased revenue and market penetration.

Stuart Higgins, Partner, BearingPoint

Looking ahead, the Retail and CPG sectors are optimistic about AI's impact. Over two thirds (67%) of executives believe that AI will have a significant impact over the next 5-10 years, while a third (33%) expect a moderate impact. This outlook suggests that while the sector recognises AI's potential, there is a need for more tangible evidence of its benefits before fully committing to transformational change.

It’s encouraging to see that Retail and CPG are at the forefront of AI adoption based on the BearingPoint study results, as we are seeing AI already revolutionising the retail landscape – enhancing customer experiences, optimising supply chains, and boosting sales and profitability. As retailers continue to leverage AI for operational efficiency and personalised consumer interactions, those who fully embrace this technology will gain a significant competitive edge.

Claire Wallis, Director, BearingPoint

[1] BearingPoint surveyed over 700 C-Suite executives in Europe, USA, and Asia on the Best Practices of AI adoption during June 2024.

[2] BearingPoint surveyed 30 C-Suite executives from the UK’s retail and CPG industry.

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Report Methodology

The data for this research was collected through an online survey conducted in June 2024. The survey targeted 700 C-suite executives from various sectors, both private and public. The respondents held various C-level roles within their organizations, including but not limited to CEO, COO, CDO, CIO, CMO, CRO, and CLO. BearingPoint’s research focused on large organisations with over €500 million in revenues. The geographical scope of the survey covered key markets in Europe, the US, and Asia.

Download the study for more details about AI and transitioning to augmented organisations: https://www.bearingpoint.com/en-gb/insights-events/insights/are-uk-companies-ready-for-ai-driven-transformation/

About BearingPoint

BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three business units: Consulting, Products, and Capital. Consulting covers the advisory business with a clear focus on selected business areas. Products provides IP-driven digital assets and managed services for business-critical processes. Capital delivers M&A and transaction services.

BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 70 countries, engaging with them to achieve measurable and sustainable success.

BearingPoint is a certified B Corporation, meeting high standards of social and environmental impact.

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