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In the era of AI, not all industries are created equal. Some are proving slow to adopt, while others are transforming at a much faster rate. Consumer Packaged Goods (CPG) is one of those industries.
We've moved beyond the experimentation phase of AI in CPG. We're now entering the early stages of operationalization, especially in planning and commercial functions.
That means it’s more important than ever to understand what can be done, and the skills you should be developing to ensure you’re ready for the reality of working in CPG in 5-10 years.
Identifying fertile ground for AI
AI is proving incredibly effective at handling routine tasks we all face daily, whether that’s summarizing meeting notes, detecting anomalies in data, or automating repetitive workflows like email.
By offloading repetitive work, we're all better positioned to focus on strategic initiatives, like using AI to make smarter decisions, improve forecasting, and identify the key indicators that truly drive business outcomes.
That said, AI isn’t a replacement for human judgment. There’s still a critical need for human oversight - to validate AI outputs, ensure accuracy, and apply contextual understanding.
Where we see AI tasked with more strategic decisions - for example, trade promotion optimization - it can fall short, thanks to messy data and inconsistent in-store execution.
What you can do right now to support a shift
Right now, the efficiency gains possible through AI should be considered low-hanging fruit that any executive should be all over.
But forward-thinking organizations are realigning their business models in anticipation of more comprehensive transformation.
Our recommendations are:
For individuals
- Start now
Play with AI tools using data you’re familiar with already, like forecast tables or shelf plans. - Don’t be scared of making mistakes
AI is new for everyone. It’s a muscle that we all need to train, so don’t be discouraged if the initial results aren’t what you expected. - Challenge everything
AI doesn’t know your customer like you do - apply your real-world knowledge. - Sharpen your storytelling
Nobody is paid to repeat what a dashboard says. Take AI-generated insights and turn them into decisions and strategies.
For team leaders
- Be vulnerable
Learn alongside your team - it builds trust. If you make mistakes, share them. - Give people space
Let them take the time to think and play with new tools. You might not see ROI immediately, and that’s OK. - Focus on mindset
Tools are only useful if your team is open to using them. - Ensure that AI is thought of as a copilot, not a replacement
Your team needs to think of AI as a tool to help them do their jobs better, not a tool to eventually reduce headcount.
The skills you should develop
If you’re hiring, training, or looking to upskill yourself, these are the skills you need to be prioritizing:
Data literacy
Can you interpret confidence intervals? Can you tell the difference between causation and correlation? Can you separate insight from noise? You need to be able to think critically about what you’re seeing - because you never want to be led by AI. You should be in the driver’s seat, with AI as copilot.
Critical thinking
AI is going to surface more insights, and generate many more scenarios than were ever possible before. Those who are able to interrogate those insights and scenarios fast, and then propose action are going to be increasingly valuable.
Collaboration and communication
Some companies we speak to are holding regular AI meetings to discuss progress that’s been made, share findings and best practices between teams, and plan next steps.
Ethical decision making
There will be ethical dilemmas that inevitably crop up as AI continues to proliferate. This is an area where human decision making is always going to be invaluable, so those with experience or aptitude in dealing with these problems will become increasingly valuable.
Next steps
An interesting book to read on this topic is Co-Intelligence: The Definitive, Bestselling Guide to Living and Working with AI, by Ethan Mollick.
If you’re interested to learn more about Pigment’s AI strategy, click here.
