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    TCS is here to make a difference through technology.

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      TCS is here to make a difference through technology.

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      15 May 2025 TCS Recognized as One of the World’s Top 50 Brands by Kantar BrandZ; Brand Value Soars 28% YoY to $57.3Bn
      14 May 2025 TCS Partners with Khan Bank to Future-Proof its Operations, Enhance Customer Experience and Propel Innovation leveraging AI and ML
      12 May 2025 TCS Partners with Dhofar Insurance Company to Transform its Core Insurance Platform
      View all
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      23 Apr 2025 TCS Partners with Google Cloud on Agent-to-Agent Interoperability Protocol to Drive Future-Ready Enterprises
      11 Apr 2025 TCS Partners with Google Cloud to Accelerate AI-led Transformation in the Retail Sector
      View all
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      22 Apr 2025 TCS Ranked #6 Amongst Banking Technology Providers and Recognized as a Regional Leader across all Geographies by Everest Group
      17 Apr 2025 TCS BaNCS Named a Leader Among Wealth Management Products by Everest Group
      13 Feb 2025 TCS Positioned as a Leader in IDC MarketScape for Worldwide Life Science R&D ITO Services 2024
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    TCS Worldwide
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    From potential to performance by design

    TCS AI for Business Study—key findings for consumer packaged goods

    Share TCS AI for Business Study — Impact of AI on CPG Operations
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    Consumer Packaged Goods Report - TCS AI for Business Study (29 pgs)

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    Reimagining business with AI

    Keeping up with consumer preferences is challenging. The latest advances in artificial intelligence (AI) have created new potential for pervasive commerce to cater to these preferences.

    The TCS AI for Business Study shows that most business leaders in consumer packaged goods (CPG) companies are optimistic about the potential of AI. This report provides fresh insights into how consumer goods and distribution companies are building effective AI strategies for their enterprise.

    This report uncovers:

    • Driving factors for AI implementations in CPG companies.
    • AI’s role in redefining the CPG industry.
    • Emerging AI trends in the CPG customer experience.
    • Evolving skills and roles in the CPG industry.
    • AI strategies for consumer goods and distribution companies.
    • Alignment of AI implementations with business results.

    Download the full report

     

    The transformative power of AI

    Most CPG executives we surveyed have a positive sentiment toward AI.

    the report

    Power of AI

    Close
    Power of AI
    the report

    Yet there’s no consensus on AI adoption strategies and not enough metrics to measure success. 66% of executives say they need better KPIs to measure the success of their AI implementations.

    Current state of AI

    • 56% of corporate functions have in-process or completed AI projects.
    • 39% of corporate functions are planning AI implementations.
    • 61% are more inclined toward using AI to spur innovation and growth.

    However, companies still a have a long way to go before they realize their AI goals.

    A gap between aspiration and reality

    This infographic discusses how the merging of reasoning and recognition intelligence into generative models offers CPG companies the potential to reimagine entire value chains and transform how they do business. However, the study findings show that there is a gap between aspiration and reality for CPG companies with only 5% saying AI is a differentiating factor for business transformation. 30% haven’t even moved beyond the initial AI exploration phase. And 32% are still cleaning up their data and moving it to the cloud.

    A gap between aspiration and reality

    Close
    A gap between aspiration and reality
    A gap between aspiration and reality
    Top AI challenges for CPG

    An image listing the top AI challenges faced by CPG companies across the globe.

    Surveyed executives identify their main challenges

    Close
    Surveyed executives identify their main challenges
    Top AI challenges for CPG

    Challenges around generative AI

    We asked CPG executives what their primary concerns are about AI, especially with the advent of generative AI (GenAI). Five strategic challenges are apparent.

    • Security and privacy concerns
    • Ethical and responsible AI use
    • Increased investment in AI research and development
    • Greater skepticism about AI
    • Cultural shifts

    Not enough metrics for ROI

    As the integration of AI into business processes accelerates, measuring the financial return on such an investment becomes increasingly significant. But only 25% of CPG executives said they have "good enough" metrics and KPIs for their AI deployments.

    Without adequate KPIs for AI-enabled operations, proving ROI and getting future buy-in will be challenging.

    Key findings—future of AI

    Even in this era of AI, there’s no substitute for human creativity, empathy, and strategic thinking.

    As many as 83% of Pacesetters, or top-performing CPG companies, think human strategic decision-making and creativity will remain essential to their competitive advantage.

    Most executives believe AI will augment and enhance human capabilities, enabling people to focus on higher-value activities. 54% of CPG companies expect most of their employees will be using GenAI daily in three years.

    Innovation will be a focus for future AI implementations. In fact, 89% of CPG companies are focused on using AI to spur innovation.

    TCS recommendations

    • Context
    • Focus
    • Integration
    • Responsible use
    • Success
    • Scale
  • Context
  • Focus
  • Integration
  • Responsible use
  • Success
  • Scale
  • Context

    Contextualize AI adoption to the domain-specific needs and focus areas across the CPG value chain.

    Create a framework for business case formulation and success measurement and enable an AI-first business architecture by leveraging top-of-the-line industry expertise.

    Focus

    Focus your AI strategy on enhancing human-machine interactions—be it employees, customers, or consumers.

    Reimagine work systems through the lens of how AI interacts with different user personas—augmenting what they are already doing (improving efficiency and effectiveness) or building new experiences altogether (greenfield innovation).

    Integration

    Integrate emerging technologies with existing ones for complementary and cost-effective value generation.

    Emerging technologies, such as GenAI and large language models (LLMs), are just part of the AI puzzle. Look to complement and build upon existing solutions and enterprise systems (for instance, CRM and marketing automation tools) to enhance service teams’ productivity and drive sustainable growth.

    Responsible use

    Create transparent and responsible AI usage frameworks for a more democratized adoption.

    Establish guidelines, policies, and processes to ensure AI systems are ethical, fair, and compliant with regulations. Make AI models more transparent and their decisions more explainable to users, allowing stakeholders to understand AI-driven outcomes and reducing resistance to adoption.

    Success

    Adopt a multi-dimensional approach to measuring the success of AI implementations.

    Create the right business case for AI initiatives. Understand the end-to-end cost implications before starting. Have a well-articulated value proposition along with use-case-specific metrics that can be tracked to assess differentiated business impact across the CPG value chain.

    Scale

    Prioritize enterprise readiness for scaling up successful pilot programs.

    Success in the controlled environment of a pilot/POC exercise is no guarantee of success in scaled productionization. Invest in initiatives to prepare your data, tooling, architectures, and people for enterprise-wide AI adoption.

    About the study

    TCS’ Thought Leadership Institute conducted a double-blind study of approximately 1,272 senior executives with P&L responsibilities in 12 industry sectors across Asia, Europe, Nordics, LATAM, North America, and the United Kingdom and Ireland, with respondents having annual revenue of $5 billion to $100 billion. The CPG industry findings are based on feedback from 106 survey respondents.

    This global study examines how CEOs, LOBs, directors, and business line managers prepare their businesses to be AI-ready, focusing on aspects such as their strategy around operations, talent, and future implementation plans. The study provides best practice recommendations based on these insights.

    Related reading

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    TCS AI for Business Study Key Findings

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    TCS Recognized as a Leader in Consumer Packaged Goods IT Services by Everest Group

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