AI is no longer a future consideration; it is a present imperative. For FMCG business leaders, the question is not whether to adopt AI, but how to do so strategically.
In this article, Oliver Bentley, explores the impact of AI on the FMCG market and the key considerations for C-suite executives looking to take advantage.
Few industries operate with the volume and velocity of data that FMCG does, from consumer behaviour and retail performance to supply chain dynamics. This creates a unique opportunity for AI to drive meaningful impact beyond automation. But real transformation requires more than investment, it demands CEO-level vision and strategic alignment.
As of 2025, 78% percent of companies globally are using AI in at least one business function, up from 55% just 12 months before, it’s fair to say the sector is undergoing a seismic shift. It’s time to exploit the real commercial value of AI.
Key areas where AI is transforming FMCG.
- Consumer Insights & personalisation.
AI is revolutionising how FMCG brands understand and engage with consumers. By analysing vast datasets, from social media to purchase history, companies can uncover micro-trends and behavioural patterns in real time.
This has the power to inform businesses from executive level down to copywriters with real-life data, significantly shortening the time from ideation to creation and as a result, you can move faster and be more creative.
- Supply Chain & Operations
AI is bringing precision and agility to supply chain management, a critical area for FMCG where even minor disruptions can have major financial consequences.
If used effectively, AI will help to reduce overstocking, improve inventory planning and speed up procurement cycles, ultimately improving speed and reliability.
- Product Development and Innovation.
AI is accelerating the pace of innovation by identifying unmet needs and predicting emerging trends.
At Oscar Mayer’s Gastro Hub for example, AI tools are used to analyse focus group data in real time, compare concepts globally and predict product success. Their immersive innovation centre blends culinary experimentation and data-driven decision making. As a result, they can delight customers with high-quality product that consumers are asking for to increase retention and customer satisfaction.
“We’re not trying to be the biggest, we’re trying to be the most innovative. AI helps us get there by turning ideas into reality faster and smarter.”
— Ian Toal, CEO, Oscar Mayer
- Sales & Marketing
AI enables dynamic pricing, campaign optimisation and real-time engagement. By analysing consumer behaviour, companies can tailor content and product recommendations and segment customers through email marketing campaigns and personalised suggestions. It can be used to predict future sales volumes by analysing historical data, promotional calendars and even weather patterns, so production and distribution can be adjusted accordingly.
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Common pitfalls and misconceptions:
Despite the momentum behind AI in FMCG, many organisations still fall into avoidable traps that limit impact and delay returns:
- Treating AI as a tech project and not a business strategy.
One of the most common mistakes is restricting AI to the IT department. Organisations who fail to align AI initiatives with core business goals will struggle to demonstrate ROI and scale solutions effectively. AI must be embedded into strategic planning and not bolted on as a digital experiment. This is not just about technology; it is about future-proofing the business model and driving transformation from the top down.
- Lack of clear objectives.
If there are no defined goals, whether improving demand forecasting, enhancing customer experience or optimising pricing, AI efforts risk becoming unfocused and underwhelming. In a 2024 Forbes report, 60% of leaders admitted their organisation lacked a coherent vision for AI implementation. In the corporate race to get ahead, it’s imperative to identify clear goals, whether that is cutting logistics cost or enhancing procurement efficiency.
- Underestimating the cultural shift.
People and culture are one of the biggest barriers to AI success, it is a mindset that needs to be embraced, not just utilising new tools and machines. Resistance from employees, fear of job displacement and scaling too quickly, can derail the most promising of initiatives. AI adoption is not just technical, it is also behavioural, as a result culture and wellbeing should be protected and considered at the heat of all decision-making.
“We never leave the decision-making solely in the hands of an AI model. There is a human at the end of every decision.”
Julian Warowioff, Managing Director at Lemonaid.
- Overlooking Data Governance and Ethics.
Many FMCG firms still lack robust frameworks and managing AI ethics. Especially when deploying consumer-facing applications. AI runs on data, and poor-quality data, privacy risk or unclear governance can undermine trust and performance. AI can make you more efficient, it can make you more thoughtful, but it doesn’t itself generate ethics or ethical value and that’s important at a time where a lot of consumers start to mistrust information.
What to do next:
AI is a strategic lever that demands CEO oversight. To lead effectively, CEOs must take decisive steps to embed AI into the heart of their organisation.
- Set a clear AI vision aligned to business strategy:
AI must be tied to outcomes that matter, starting with a well-defined purpose and roadmap that aligns AI initiatives with broader business goals. - Start small and scale fast:
Quick wins build momentum and confidence across the organisation. The most successful CEOs will be those who adopt a phased approach, beginning with high-impact pilot campaigns. - Invest in data, talent and culture:
A culture of experimentation and continuous learning must be championed from the top down, to ensure AI success. - Build governance and ethical oversight:
AI introduces risks, and robust governance frameworks are essential to avoid reputational damage and regulatory setbacks. - Lead from the front:
Those that personally drive AI strategy, rather than delegate, are more likely to see measurable business impact.
Final thoughts:
AI is reshaping the FMCG landscape, not gradually, but exponentially. For CEOs, the opportunity is clear: lead with intelligence, or risk falling behind. The winners in this new era will not be those who adopt AI the fastest, but those who embed it most strategically.