How consumer goods companies can use agentic AI

Gen AI is old news. This year is all about agentic AI.

Unlike traditional AI, which depends on predefined inputs, agentic AI is adaptive and action-oriented. AI agents make decisions and solve problems while keeping teams in the loop, freeing employees to focus on strategic, high-value work. For consumer packaged goods (CPG) companies, agentic AI presents a huge opportunity.

In this blog, we share insights from our conversations with clients on how CPG leaders plan to use AI to build superior brands, products, categories, channels, and experiences.

Supply chains are the lifeblood of any CPG company. It's why agentic AI should be used not just to streamline but also to completely transform supply chain management. Here are some examples.

• Predictive logistics: Agentic AI anticipates demand by analyzing patterns like seasonal trends and consumer behaviors. A beverage company could prestock warehouses during an impending heatwave, ensuring products are ready where and when needed
• Dynamic pricing models: Balancing profitability with affordability is easier with real-time pricing adjustments. Grocery chains could lower prices on expiring seasonal produce to reduce waste and support sustainability goals
• Integrated operations: Agentic AI can seamlessly connect CPG supply chains with retail supply chains, ensuring stock is replenished on time and shelves stay full. These integrated operations can support better decision-making within on-time, in-full inventory and trade promotion strategy

When bringing agentic AI to supply chains, it's important to remember that high-quality data is essential for accuracy, and investing in robust data systems is nonnegotiable. Plus, coordinating data-sharing with retailers requires trust and collaboration, so it may be best to start with small pilot programs.

Agentic AI can reinvent CPG marketing, shifting from static, one-size-fits-all strategies to dynamic, personalized approaches that connect brands and consumers.

• Hyper-personalized campaigns: CPG leaders need advertising carefully tailored to their target audiences. Agentic AI can analyze consumer habits, online behavior, and preferences to deliver recommendations that resonate. Beauty brands, for instance, can use interactive campaigns to suggest customized skincare routines
• Informed influencer alliances: Agentic AI makes it easier to match your brand with the perfect influencers who align with your ethos and target audience. Pet care brands can partner with rising social media personalities in the pet-owner community to achieve more authentic and impactful campaigns
• Agile campaign adjustments: Agentic AI doesn't just track campaign performance – it acts. If a campaign fails to deliver, AI recalibrates in real time, tweaking content, visuals, or budget allocations to maximize results. This level of agility gives you a greater return on investment for your marketing budgets

Of course, all this personalization is powered by data, and data privacy is critical. Transparent consent frameworks and anonymized data models must be used to maintain trust. AI can also help CPG companies avoid overloading consumers with ads by moderating frequency and highlighting optimal engagement times.

Innovation is crucial to win over younger, forward-thinking customers. Agentic AI can empower CPG employees to more effectively predict trends, streamline product development, and meet shifting consumer expectations.

• Smarter product development: Instead of trial and error, agentic AI uses consumer data and market trends to predict what customers want next. Plant-based snack brands can adapt recipes based on regional ingredient demand to cater to specific markets
• Sustainable packaging: Eco-awareness is rising, particularly among younger generations. Agentic AI helps conceptualize packaging that's modern and environmentally conscious. Brands can test designs and materials virtually to select options that minimize waste while appealing to eco-conscious shoppers
• Accelerated testing: AI simulations allow brands to test product variations and optimize features quickly. Beverage companies can experiment with flavors and carbonation levels virtually, getting products to market faster and more efficiently

Sustainability is a big concern for their customers, so CPG companies should use AI to develop products and processes that reduce environmental impact. By working smarter and faster, agentic AI gives you the tools to capture the loyalty of new and emerging customer bases.

Whatever ways CPG companies choose to use agentic AI, the goal remains the same – empower employees to make smarter business decisions based on analytical insight.

To do this, CPG companies need an analytics engine that connects their data to retail data. Once connected, CPG companies can use agentic AI to produce, price, and package their brands to meet the needs of the consumers of today and tomorrow.