IBM Study: AI Shift Toward Innovation and Revenue Expected to Reshape Business Growth by 2030

The integration of AI is expected to fundamentally alter organizational structures and the labor market.

RMN Digital Research Desk
New Delhi | January 19, 2026

ARMONK, N.Y. – New research released by the IBM Institute for Business Value reveals that artificial intelligence is poised to transition from a tool for efficiency to a primary engine for corporate innovation and revenue growth by the end of the decade. According to a global study of 2,000 C-suite executives, nearly eight in ten (79%) respondents expect AI to contribute significantly to their revenue by 2030, a substantial increase from the 40% who say the same today.

A Surge in Investment and Innovation

As businesses look toward 2030, AI investment is projected to surge by approximately 150%. This financial commitment marks a strategic pivot; while 47% of current AI spending is dedicated to efficiency, executives anticipate that 62% of their AI spend will focus on innovation by 2030. Furthermore, 70% of leaders plan to reinvest value gained from AI-powered productivity—which is expected to increase by 42%—directly into new growth initiatives.

Mohamad Ali, Senior Vice President of IBM Consulting, emphasized the magnitude of this shift, stating that AI will eventually define businesses rather than just support them. Ali noted that the future “winners” will be those who weave AI into every operation and decision, allowing them to bring innovations to market faster than their competitors.

Strategic Technology Bets: SLMs and Quantum AI

The study highlights that competitive advantage will increasingly depend on choosing the right technological frameworks. Key findings regarding the future tech landscape include:

Small Language Models (SLMs): 72% of surveyed executives expect SLMs to surpass large language models (LLMs) by 2030.
Multi-Model Capabilities: 82% of respondents expect their AI infrastructure to be multi-model within the next several years.
The Quantum Gap: While 59% of executives believe quantum-enabled AI will transform their industry, only 27% currently expect to be using quantum computing by 2030, suggesting a massive opportunity for early adopters.

Organizations that are already scaling AI across multiple workflows using custom and foundation models report significantly higher outcomes, including 55% higher operating margins.

Redefining Leadership and the Workforce

The integration of AI is expected to fundamentally alter organizational structures and the labor market. By 2030, executives anticipate that 25% of enterprise boards will include an AI advisor or co-decision maker, and 74% believe AI will redefine leadership roles across the board.

However, this transition presents a significant challenge for the workforce. 57% of executives expect current employee skills to be obsolete by 2030, with 67% of respondents stating that a “mindset” will matter more than specific technical skills in the future. Despite these concerns, 67% of leaders believe AI will ultimately eliminate the resource and skills constraints that currently hinder organizational progress.

About the Study

The findings are based on a survey conducted by the IBM Institute for Business Value in cooperation with Oxford Economics. The research gathered insights from 2,007 senior executives across 20 industries and 33 geographies during the latter half of 2025. The full report aims to provide a roadmap for leaders to convert “AI-first ambitions” into measurable business outcomes.