A recent study by Boston Consulting Group reveals something interesting: one in three companies plans to invest $25 million or more in artificial intelligence by 2025. This isn’t just a small sample either; it surveyed 1,803 senior executives across 19 markets and 12 sectors.
The findings highlight a clear divide. Larger companies, those earning over $500 million, are stepping up their AI investments. However, not everyone is reaping the benefits. While 75% of businesses rank AI as a top-three priority, only 25% report seeing real value from their efforts.
The BCG study suggests that companies excelling in AI focus their energy in specific areas. They prioritize reshaping key functions to enhance efficiency and creating innovative products and services. In fact, over 80% of AI investments from these leaders go toward these initiatives. On the flip side, those lagging behind often spread their resources too thin, focusing 56% of their budget on smaller, less impactful projects, leading to diminished returns.
Measuring success plays a significant role here. Many leading firms set clear goals and consistently track their outcomes. Yet, alarmingly, about 31% of companies don’t measure any key performance indicators related to their AI strategies. Even more troubling, 60% fail to monitor the financial impact of their AI investments.
Depth trumps breadth for the successful players. On average, they hone in on 3.5 AI use cases compared to 6.1 use cases among others, expecting to achieve over double the return on investment. Christoph Schweizer, CEO of BCG, emphasizes this strategy. He notes that while many executives appreciate AI’s importance, there’s a gap between what they want to achieve and what they’re actually getting.
Looking at the UK specifically, of the 182 surveyed companies with revenues above $500 million, 65% anticipate spending at least $25 million on AI initiatives come 2025. This means they plan to allocate about 5% of their revenue to AI—significantly more than typical IT budgets, which generally cover essential maintenance like cybersecurity and existing systems.