The enthusiasm for generative AI is evident and new applications and opportunities are being discovered every day. In 2024, companies able to experiment with AI and integrate it into their processes will pave the way for exciting new possibilities.
What you need to know about Generation AI in the consumer goods industry
2023 was the year of Generative AI, and 2024 will be no different. With the growing interest in this technology, companies are experimenting and trying new ways to integrate Gen AI into their processes, to stay ahead and be at the forefront of the revolution.
The FMCG industry is leading the way: globally, The value of generative AI in FMCG is expected to grow from $39.2 million in 2022 to $283.5 million by 2032, with a staggering CAGR of 22.5% in 10 years..
However, most businesses still struggle to understand this technology and how best to implement it to create value and drive growth. While it is true that generative AI requires specialized knowledge, skills and resources and carries challenges and risks, the fact remains one of the most promising success factors in all sectors.
Here’s a guide on how to use Gen AI in CPGs and the benefits it can bring.
1. Businesses will have access to more data for CPG Analytics
Data is at the center of today’s businesses. As noted ForbesIn the era of Big Data, it is even more crucial to access accurate and reliable data to generate insights. CPG Analytics Using high-quality data has the power to drive decision-making and truly impact your business, but how do you get the right data? Unfortunately, it is easy to incur suboptimal datawhich can lead to distorted results and bad decisions:
- Missing data
- Inaccurate data
- Obsolete data
- Duplicate data
- Unformatted data
This is where generative AI can help. Currently, CPG companies rely primarily on distributors and retailers to collect data, but the advent of generative AI in CPG provides a new opportunity: AI can collect and analyze massive amounts of data online and offer Information on consumer products. It can collect more data, simplify CPG Analytics, and ensure high quality by performing precise data cleaning.
2. CPG AI opens the door to deeper personalization
Personalization is more important than ever because it drives performance and better results for customers.
A McKinsey Report found that fast-growing companies generate 40% more of their revenue from personalized products than slower-growing companies, and that 76% of consumers become frustrated with a brand when they can’t find a personalized experience .
How can your business leverage the power of personalization to drive growth? Consumer AI is the answer, allowing consumers to generate personalized options easily and quickly. With generative AI, tapping into personalization revenue streams becomes easier than ever.
3. Improve marketing strategy through personalization
Personalization also applies to marketing. Statist considers personalization marketing as one of the most indispensable strategies in the world for B2C and B2B, capable of proving much more effective than conventional marketing. In particular, 51% of marketers believe that improving the customer experience is the main benefit of personalized marketing.
Generative AI is extremely valuable in personalization marketing, making content writing and interacting with consumers online easier and faster. Today’s consumers expect content, ads, and interactions to be highly personalized based on their industry, segment, and role, and businesses can use Gen AI to analyze their target audience and create the perfect marketing content.
However, most companies already use Generative AI Services in CPG for their marketing strategy do not delegate all the workload to Artificial Intelligence. During March 2023 survey Among marketers worldwide, only 4% of respondents said they do not edit AI-generated content before publishing it. The majority (53%) make minor edits, 39% make major edits, and 5% completely edit content.(1)
So, what are businesses supposed to do with AI-generated personalized marketing content? The key seems to be to always supervise the work and add a human touch.
4. Smarter factories and improved production
Generative AI in consumer products also has the power to transform the production side of the industry. Factories and factories are becoming increasingly automated, leading to significant technological improvements that allow businesses to collect more data, control everything, and save time and resources.
In the years to come, we are likely to see a proliferation of high-tech smart factories leveraging the power of artificial intelligence to achieve previously unthinkable levels of efficiency.
Unleash the unlimited power of generative AI
5 critical obstacles related to innovative technological architectures
5. Generative AI as a Service for Product Development
Product development is an area that can greatly benefit from Gen AI, especially in the consumer goods sector. Powered by consumer data (such as feedback, user behavior data and market response) and CPG Analytics, it can power innovation and increase efficiency in the design process.
Here are some ways Gen AI can boost product development:
- Collecting consumer feedback and data
- Identify prototype strengths and weaknesses with CPG Analytics
- Identify room for improvement
- Allow real-time feedback loops
- Accelerate idea generation
- Automate and streamline design iterations
- Optimize resources
Generative AI can be applied to the development of new products and the improvement of existing products. Adopting an AI-driven approach, as with GenAI Council helps companies navigate the challenging rapid prototyping landscape by driving innovation and reducing time to market; Ultimately, it can be the vector of success in an increasingly complex and competitive scenario.
6. Anticipate the market: how to move from reactive to predictive
Businesses already use data analytics to anticipate aspects of the market (like demand), but AI-powered CPG analytics can significantly improve their predictive capabilities. Generative AI can provide deeper and more precise insights to anticipate trends and even create them; this can improve inventory management and logistics, optimize resources and lead to more strategic marketing campaigns.
Businesses can significantly improve their data analytics capabilities by adopting AI, making the difference between simply surviving and thriving.
7. Improve customer experience with generative AI
Generative AI as a service can be applied to one of the most important aspects of business today: customer experience.
97% of consumers say that interacting with customer service impacts their brand loyalty.
Knowing that customer experience is such an important factor, how can we improve it and make it a value generator? The answer, once again, may be generative AI. Unleash FMCG Growth with Generative AI – Download Introduction to GenAI.
The CX (customer experience) landscape is rapidly evolving to adapt to macroeconomic changes and evolving consumer behavior and preferences. In this scenario, businesses need to shift to dynamic contact center operations powered by artificial intelligence. Early adopters are already seeing positive results by integrating GeneAI into their customer service, completely transforming the customer experience. Learn more about Generative AI customer use cases.
CPG AI applications are numerous and high-impact and have the potential to transform your business and be the differentiator between failure and success. There is plenty of room for generative AI in the consumer goods sector, and early adopters have a significant competitive advantage in a winner-takes-all market. Businesses are now at a crossroads: take the leap into AI and digitalization, or stay behind?
