#USA #Veeva Systems #Barcelona #AI Technology #Consumer Goods

Establishing the Foundation for AI: Top Priority for Consumer Goods Companies

The demand for advanced technology infrastructure is becoming increasingly pressing for consumer goods companies. According to a newly released industry report, 82% of organizations are actively migrating to unified platforms to standardize data and processes, thereby laying the groundwork for effective Artificial Intelligence (AI) implementation. This marks a significant shift in how these companies operate and underscores the necessity of adapting to new technologies for competitive advantage.

Migration to Unified Platforms

The report reveals that many consumer goods companies are consolidating older systems or transitioning away from leading solutions to adopt integrated platforms. This approach enhances interoperability between systems, enabling standardized data and processes vital for AI applications. It also highlights the industry's recognition that to harness AI effectively, a solid data foundation is essential.

Adoption Rates and Operational Needs

An impressive 72% of consumer goods companies are utilizing or planning to implement AI-driven agents to optimize their manufacturing operations. This trend signifies the need for advanced systems that can deliver clean and standardized data, identifying a crucial gap in current operational frameworks.

Challenges to AI Implementation

While the potential benefits of AI are widely acknowledged, the report indicates persistent barriers to its adoption. The three major challenges hindering progress include:
1. Regulatory compliance and security concerns (60%)
2. High costs and resource limitations (60%)
3. Integration complexity with existing systems (58%)

These barriers emphasize the need for consumer goods companies to innovate their technology frameworks to overcome these hurdles.

Manual Processes and Risks

The prevalence of manual processes in the industry poses additional risks. Approximately 64% of respondents reported reliance on a combination of digital and manual processes—often predominantly manual—across their supply chains for quality and compliance management. This situation escalates the risk of errors and inefficiencies. Those prioritizing advanced data integration and process automation express optimism that these improvements could minimize repetitive tasks and eradicate data silos.

The Push for Predictive Analytics

Consumer goods companies are increasingly interested in predictive analytics enabled by AI, with 24% of survey participants pointing to its potential in enhancing quality assurance and compliance. Other significant benefits of AI include improving decision-making processes (21%) and offering proactive problem detection and prevention (19%). This underscores a shift toward real-time information usage in quality control, necessitating partnerships with technology experts who understand the industry-specific regulatory landscape.

People, Processes, and Data: Key AI Drivers

A critical analysis indicates that the alignment of people, processes, and data is vital for successful AI rollout. According to the survey, the leading enablers of a successful AI launch include:

• - Comprehensive employee training programs (72%)
• - High-quality data infrastructure (66%)
• - Cybersecurity and regulatory compliance for AI (64%)

This points to the necessity of coordinated organizational readiness to reap the rewards of AI transformation.

Conclusion

David Maher, Chief Strategy Officer at Veeva QualityOne, stated, "The State of AI in Consumer Goods report demonstrates that quality management across multiple legacy systems is impeding AI readiness. For effective AI utilization, respondents indicate the need to establish a strong data foundation on a unified platform, which can scale to deliver clear value."

This report surveyed over 150 functional and IT leaders from global consumer goods companies in the United States, addressing industry readiness for AI, adoption challenges, and opportunities for IT to drive value and innovation. To explore the full findings, read the complete report.