The 5 AI applications Drives Most Growth in CPG

NOV, 2023

Consumer Packaged Goods (CPG) industry is no stranger to innovation, and in today’s digital age, the role of Artificial Intelligence (AI) has transformed from a supportive tool to a driving force behind remarkable growth.

Explore the 5 groundbreaking AI applications that are reshaping the landscape of the CPG industry and propelling growth:

  1. Precision Demand Forecasting

AI empowers CPG companies to forecast product demands with exceptional accuracy, not just for existing products but also for new launches.

By scrutinizing historical regional, store-specific, and SKU-level data, AI enables effective inventory management, suggested order, optimized purchasing planning, precise product placement, ensuring the right products reach the right shelves at the right time.


  1. ROI Measurement and Insights

By harnessing AI, CPG businesses gain crucial insights into their Return on Investment (ROI). This capability allows a deep understanding of the impact of promotional spending, marketing initiatives, and sales activities. It equips companies with data-driven perspectives, enabling better resource allocation and maximizing the effectiveness of promotional efforts and trade promotion budgets.


  1. Data-Driven Sales Activation

AI plays a pivotal role in identifying optimal retail outlets and points of sale for activating promotions and sales strategies. By processing vast datasets, AI determines the most effective sales actions to maximize market share and brand visibility at the store level, enhancing overall performance. Including retail execution strategies, merchandising, shelf display, promotion activities.


  1. Tailored Product Assortment

Through AI, CPG companies can fine-tune product assortments at the store level to maintain maximum brand visibility and shelf appeal for every point of sales. AI optimization ensures the distribution of tailored product combinations to each outlet, accommodating local preferences, consumption scenarios, channel characteristics, and ensuring customer satisfaction.


  1. AI-Enabled Diagnostic Recommendations

AI conducts detailed diagnostics to pinpoint compliance issues, gaps, and areas for improvement. The AI-powered recommendations offer actionable insights and follow-up suggestions for sales reps, distributors, and retailers, streamlining operations and improving overall efficiency.



By using AI and advanced analytics techniques, brands can generate actionable ­insights from data, driving growth by enabling informed decision-making, boosting sales, and reshaping the industry for a more agile and competitive future. These key AI capabilities represent the power and potential for CPG companies to chart a successful course in an increasingly data-centric and technology-driven market. They could result in more than 10% growth in sales. Explore with us to find out how to enable your retail success with AI!