Building a Foundation for AI Automation Use Cases

As AI integration within the consumer goods industry evolves, the technology is transforming processes and automating manual tasks to free up time for more value-added tasks. A robust AI approach, however, requires a heavy focus on data infrastructure and an extensive IT ecosystem.In this fireside chat, CGT spoke with Joel Cartwright, industry principal consumer products at Vistex, to explore how AI-powered automation, and the need for robust AI policies, are reshaping the CPG sector.At Vistex, Cartwright helps identify and understand the evolving trends impacting the consumer products industry. Over the last 12 years, he’s focused on the software side of tech innovation. Prior to that, he began his career with manufacturers such as Sarah Lee Foods, Sunday Delight, and Kimberly-ClarkAI is changing how businesses in the consumer products industry gather, analyze, and act on data. By pulling together multiple data sources and KPIs, manufacturers can quickly consolidate complex information to create actionable strategies. For example, creating detailed reports for buyers or retailers historically required significant time and effort, but generative AI is now expediting this process through automation, he noted. AI can now help manufacturers better understand and predict consumer behavior by integrating data that might have previously been disconnected, such as purchase history or external data like social media trends and weather patterns. With these insights, companies can create more targeted and personalized marketing and sales strategies, elevating engagement with retailers and consumers.There have been continued challenges around data collection, however. Many companies still struggle with disconnected data sources that make it difficult to integrate and leverage AI effectively. Establishing a unified data ecosystem is critical for AI to function properly, as it requires consistent, well-organized data from a variety of sources to train algorithms and generate accurate insights.Cartwright also touched on internal applications for AI to automate business processes within the claims and settlement process — a common pain point in the CPG industry due to manual efforts. It typically involves multiple team members manually gathering data, checking it against contracts, and validating claims. AI automation in this space reduces the need for human intervention, automatically pulling data from various sources, matching it to the relevant contracts, and flagging discrepancies that require human review. The integration of AI into legal and accounting processes in the CPG sector is another area of growing interest. With AI’s ability to automate tasks like month-end accruals, financial reporting, and compliance checks, there are opportunities for streamlining back-office operations. However, as AI becomes more involved in sensitive processes, companies must consider the ethical and compliance implications, he said.While AI will not completely replace human workers, Cartwright said it can potentially automate up to 60% of the process so staff can focus on more strategic areas of work. There should be a continued focus on delivering an elevated consumer experience — something that requires human interaction, said Cartwright. While AI can automate many tasks, it should complement human efforts, not replace them. Human oversight will also still be necessary to ensure compliance with regulatory standards and to verify the accuracy of automated outputs, said Cartwright.

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