“It’s becoming an essential strategic focus and a competitive differentiator across the entire value chain, not just a tool for efficiency,” the authors write. They see wide-reaching use cases, from demand forecasting to supply-chain automation to product recommendations, and believe it should provide a “more pleasant customer experience” on top of improving operations. The use of AI will be a critical factor going forward that separates winners and losers in the consumer space, they add. It’s just so early.

Despite prominent case studies and a surge in executive attention, UBS finds the direct, quantifiable financial impact of AI remains limited, stating simply about profits and loss statements, or P&L: “AI’s impact on P&L is not material, but we expect it to be visible in the next 3 years.” Meanwhile, despite many headlines about AI-related layoffs, UBS finds little evidence of reductions in headcount: “We have heard some anecdotal evidence but not within our coverage.” Such reductions in force are likely to come, though, UBS added.

Drawing on in-depth interviews with analysts and company disclosures across more than 20 global sectors, the report details how AI is reshaping everything from supply chains and marketing to customer experience, while underscoring the most significant changes—and competitive divides—are yet to fully appear. “Most consumer companies expect the impact of generative AI to be more visible in 3 to 5 years,” the note adds.

AI moves from back office to boardroom

A central theme: AI has moved beyond being a back-office efficiency tool to a core part of business strategy. Large retail and consumer-oriented firms, notably Walmart, are appointing executives dedicated to AI transformation, underscoring its rising importance. The number of AI mentions on consumer-sector conference calls has doubled since 2022, and major investments are being made not only to streamline operations, but also to power growth through personalized recommendations, smarter inventory management, and targeted marketing.

Leading companies are finding a wide range of AI applications, the UBS Evidence Lab found.

Walmart uses AI-driven recommendations and assistants to personalize the shopping experience and optimize fulfillment. Automation in its supply chain is credited with up to 30% reductions in unit costs at fulfillment centers.L’Oréal leans on AI for marketing optimization and product innovation, reporting 10%-15% productivity gains in advertising tasks due to its bespoke BETiq tool, which it expects to cover 60% of its marketing spend by 2024.P&G utilizes AI for logistics, and it has quantified a potential $200 million-$300 million in savings from smarter truck scheduling.

Globally, consumer-facing companies are also deploying AI for tasks ranging from product design (e.g., Robam’s proprietary LLM called “AI Gourmet” in China), to dynamic pricing, to smarter labor scheduling. In Australia, travel firms and retailers have cited cost savings and improved margins from AI-enabled automation.

Bigness will matter

A recurring takeaway is that large, well-capitalized incumbents are set to benefit most in the near to medium term. These players, such as Walmart, Home Depot, Coca-Cola, L’Oréal, and China’s Midea and Haier, can better afford the investments and have the customer data troves needed to maximize AI’s benefits. In contrast, smaller and less technologically advanced companies may struggle to compete, potentially accelerating industry consolidation or leaving followers at a disadvantage.

While patterns of AI adoption are broadly similar worldwide, impacts vary by region and sector. U.S. retailers and restaurant chains have focused on operational efficiency and customer engagement. The European luxury sector, more dependent on craftsmanship and brand, should see less near-term impact from AI. In Asian markets, market leaders are leveraging AI to drive product differentiation and cost advantages, but there is little evidence of broad profit impact yet.

Only a handful of companies, usually industry giants with deep pockets and rich data sets, are reporting clear improvements in margins or revenue directly attributable to AI adoption. Most firms, especially smaller ones, have yet to see material P&L enhancements. In many cases, AI’s efficiency gains are being reinvested to spur growth, rather than dropping to the bottom line.

Outlook: gains to materialize over 3–5 years

Most analysts expect the true financial benefits—higher margins, revenue growth, and labor productivity—to become “visible” within three to five years, as AI applications mature and become more deeply integrated into core business processes. In the meantime, a wave of experimentation—particularly in marketing, logistics, and customer experience—is laying the foundation for a potentially transformative decade for consumer industries.

For now, UBS concludes that for all the excitement, the AI revolution’s effects on consumer-sector profits and workforce structure are only just beginning to be felt.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.