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Shampoo Lipstick On Conveyor Belt Cpg

Unlock AI’s Full Potential in CPG with Strategic Focus and Data-Driven Insights

The big talk around generative AI in consumer-packaged goods (CPG) paints a flashy picture: shiny, futuristic tech that’s here to rewrite the playbook.

But there’s a catch.

No CPG company has cracked the code on scaling it effectively yet.

They’ve been dabbling, sure (71% say they’ve adopted AI somewhere in the business).

But it’s not the game-changer we keep hearing about. Why?

Because the real heavy lifting still relies on traditional AI, which has up to 7 times the potential impact.

This means most leaders aren’t asking the right questions yet.

Instead of chasing the latest AI buzz, CPG companies should be honing in on the areas that drive real value, like demand shaping and customer insights.

That’s where the profit lives.

Fancy new tools are tempting, but they won’t work magic without strategy behind them.

Direct-to-consumer (DTC) companies, especially in beauty and personal care, are prime examples.

Their secret to success?

Leveraging AI to elevate personalization and customer engagement.

AI-powered beauty apps and product recommendations drive more direct sales and build deeper connections.

But even here, it’s not just about the tech … it’s about understanding consumer data and applying it strategically across the entire value chain.

Here’s how CPG leaders should approach AI integration:

The lesson for CPG is to not jump on the AI bandwagon without a map for where it’s taking you.

The big wins come from aligning AI with a data-driven strategy that hits exactly where it counts.

Right now, most are just skimming the surface. You can’t expect tech to solve what bad strategy built.