Development of AI/ML has become more prevalent since global pandemic, we explore how they have stimulated innovation in technologies that is revolutionizing the CPG industry by enhancing customer engagement and shopper experiences while in R&D and SC, its use is in a relatively nascent state. AI-enabled bots and customer service portals enable companies to respond to customer queries quickly and accurately. Additionally, AI-enabled insights allow for personalized customer experiences and offers to increase customer satisfaction.
• AI/ML are being successfully leveraged to identify emerging trends; however, we are still some ways from helping to identify the small number of trends from the plethora of trends that will see disproportionate growth.
• Digitalization of R&D has seen an increase in the use of AI/ML to design winning products. AI/ML is being used to enable virtual try-ons and product recommendations, (personalization) and helping to unravel understanding of products and their interaction with substrates at the molecular level. We are sometime away when we can generate insights and design formulations using chatGPT alone.
• AI/ML is also being leveraged by CPG companies to optimize the supply chain and increase efficiency in the retail space.
• AI-driven algorithms and predictive analytics, CPG companies can anticipate better and act on customer demand and store stocking. AI-powered demand forecasting and optimization capacitates CPG companies to reduce inventory cost, reduce waste and ultimately provide customers with faster and more efficient product delivery.
• CPG companies can also use AI/ML to improve their customer loyalty programs and promotions. AI-powered algorithms allow CPG companies to analyze customer buying patterns and behavior and create customized promotions that customers can luxuriate it.
• As AI/ML technology continues to evolve, CPG companies are expected to become increasingly AI- enabled to improve product design, customer engagement, customer satisfaction and supply chain efficiency. Ultimately, this will revolutionize how customers shop, how companies engage with customers, and how products are designed, sold, stored, and shipped.
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