Artificial Intelligence (AI) is revolutionizing the consumer products industry, driving productivity, innovation, and customer engagement. “Ultimately you can get a better understanding of your customers through AI,” said Naser Bakhshi, director of artificial intelligence at Deloitte. “Allowing you to tailor your services and products, facilitate growth and differentiate yourself from the competition.”
From data management to regulatory compliance, AI is already transforming businesses and fueling growth, and has the potential for far greater impact in the years ahead.
As the general manager of Veeva Consumer Products, I have the privilege of collaborating with industry executives to navigate digital transformation. Based on recent conversations, here are the top five AI themes shaping the consumer products industry:
1. Data Management Excellence
The key to successful AI implementation lies in robust data management practices. Industry leaders stress the importance of structured data systems for effective and scalable AI initiatives.
Coming from the food and beverage sector, a global regulatory affairs leader underscored the need for data infrastructure before applying AI. "If you don't have your data infrastructure in place, you cannot apply artificial intelligence on top. The first step is building that data core, which is super important for the future."
2. Boosting Productivity and Efficiency
AI's impact on enhancing operational efficiency through automation and faster decision-making processes is a game-changer for organizations.
Executives across the food and beverage industry are exploring AI's impact on various aspects of their operations. A vice president of global food safety & quality assurance noted, "AI at our company is more around consumer insights, impacts on marketing, and where we should focus. Regarding food safety, we have a lot of digital initiatives though not sure about the AI use in that space."
3. Personalized Customer Experiences
Learn how AI enables companies to better understand customer behavior, leading to tailored marketing strategies and improved customer satisfaction.
A CPG digital R&D executive highlighted how AI can drive customer engagement by leveraging data. "By using AI, we can better understand our customers' needs and preferences, leading to more targeted and effective marketing strategies. This not only improves customer satisfaction but also drives business growth."
4. Driving Scientific Innovation
Explore how AI accelerates scientific discoveries and innovation by analyzing vast amounts of data efficiently.
The head of R&D digital & partnerships from a global top FMCG enterprise explained, "In R&D, AI aids in scientific discoveries and accelerates the innovation process by analyzing vast amounts of data more efficiently. This allows us to drive bigger and better science, ultimately leading to groundbreaking innovations."
A head of consumer care for a major CPG ingredient supplier shared how AI is enhancing their R&D efforts. "AI is a critical tool in driving scientific research and innovation. It helps us analyze data more quickly and accurately, leading to faster and more significant discoveries."
5. Ensuring Regulatory Compliance
Managing regulatory compliance is a critical aspect of the consumer products industry, and AI is proving invaluable in this area. Companies are using AI to streamline regulatory processes, enhance data transparency, and ensure compliance with evolving regulations.
A chief quality officer from the CPG sector emphasized the role of AI in simplifying and standardizing regulatory compliance. "Digital solutions support us in so many ways. With automation, we have fewer human errors, which means fewer incidents and non-conformances. AI helps us better understand our consumer experiences and improve product quality."
How Does Your AI Journey Compare?
The integration of AI in the consumer products industry is a multifaceted journey, with data management, productivity, customer insights, scientific discovery, and regulatory compliance emerging as key themes. As these executives illustrate, AI is not just a tool but a transformative force that, when leveraged correctly, can drive significant improvements across various business functions.
Embracing AI requires a strategic approach, starting with a strong data foundation and extending to innovative applications that enhance efficiency and drive growth. By focusing on these key themes, consumer products companies can navigate the complexities of AI implementation and unlock their full potential to stay ahead in a competitive market.
Want to dive deeper into this topic? Check out this recap blog of the opening keynote “Navigating Digital Transformation in the Era of AI” from our recent Veeva Consumer Products EU Summit or watch the full conversation on-demand.