The Crucial Need for AI Infrastructure in Consumer Goods Industry

In the rapidly evolving landscape of consumer product goods (CPG), the integration of artificial intelligence (AI) has emerged as a non-negotiable priority. A recent report, titled The State of AI in Consumer Goods, reveals that 82% of CPG companies are now focusing on creating an AI-ready infrastructure. This transition involves moving away from legacy systems toward unified platforms that can provide standardized data and streamline processes crucial for effective AI applications.

The report highlights that the shift towards AI is not just a trend but rather a necessity for operational efficiency. As companies increasingly recognize the potential of AI in enhancing their manufacturing operations, they are turning to more advanced technologies. About 72% of companies are utilizing, preparing, or planning to adopt agentic AI, indicating a readiness for systems that offer clean and standardized data necessary to leverage AI advantages fully.

Despite this significant shift, the report outlines barriers that hinder many organizations from reaping the full benefits of AI. The current technological frameworks remain a substantial obstacle for many. Key challenges identified include compliance and security issues (60% of respondents), exorbitant costs coupled with resource limitations (also 60%), and the complexities of integrating new systems with existing infrastructures (58%). These issues underline the critical nature of addressing the foundational elements necessary for AI deployment.

Moreover, it appears that many CPG companies still rely heavily on a combination of manual and digital processes—that is, 64% reported using traditional methods with minimal digital tools to maintain quality and compliance throughout their supply chains. These outdated systems not only inhibit efficiency but also pose risks by heightening the likelihood of errors in quality management processes. Respondents have noted that advanced data integration and process automation capabilities are crucial for enhancing IT performance, emphasizing a pressing need to reduce repetitive tasks and eliminate harmful data silos.

Interestingly, CPG enterprises are increasingly craving AI-powered predictive analytics. The insights from the report demonstrate that the most sought-after capabilities include enhancing quality and compliance assurance (24%), improving decision-making through data-driven insights (21%), and facilitating proactive issue detection and prevention (19%). This growing emphasis on real-time insights for managing quality illustrates the demand for technology partners with a robust understanding of manufacturing and compliance needs.

The ultimate success of AI implementation, as the survey suggests, hinges on achieving a balance across three critical factors: people, processes, and data. Notably, 72% of respondents stressed the importance of comprehensive employee training programs, with 66% citing the necessity for high-quality data infrastructures and 64% emphasizing AI cybersecurity and compliance measures. This coordinated organizational preparation signals that AI success will depend on a well-rounded approach that encompasses various organizational elements.

David Maher, head of strategy at Veeva QualityOne, commented on the findings, stating, "The State of AI in Consumer Goods Report shows that managing quality across numerous legacy systems is hindering AI-readiness. To use AI effectively, respondents are considering establishing a strong data foundation on a unified platform that can scale to realize clear value."

Veeva QualityOne, which played a pivotal role in the research, focuses on providing tailored cloud software solutions that address the distinctive challenges faced by companies in the life sciences and consumer products sectors. This commitment to enhance operational efficiencies and regulatory compliance is vital in today's market, where speed and safety in product delivery are paramount.

In conclusion, establishing an AI-ready infrastructure is no longer a mere option for CPG enterprises; it is a critical necessity. As the industry continues to evolve, those who embrace AI through a solid foundational setup and a holistic approach will undoubtedly lead the market, setting new standards for efficiency, quality, and compliance in the consumer goods arena. For organizations seeking to dive deeper into these insights, the full report offers extensive research into AI readiness, challenges, and opportunities for further innovation within the industry.