From Insights to Impact: Identifying the Pillars of Intelligent Personalization

The consumer goods industry is facing significant challenges, such as quickly changing consumer behavior and hazy macroeconomic conditions. Data-driven personalization enabled by AI, however, can help companies navigate these obstacles. In the latest Expert Exchange episode, CGT senior editor Liz Dominguez speaks with Liz Papasakelariou, managing partner and consumer products lead at Publicis Sapient, about the industry's digital acceleration and AI-enabled personalization as companies face rising costs and supply chain challenges.AI is not a trend but a necessity for consumer goods companies, notes Papasakelariou. CPGs are having to turn to technology to meet demands and remain competitive. The majority of companies are either using or piloting generative AI and plan to increase their spending on it. The key to successful AI implementation is to shift from small pilots to integrating AI into core business functions to solve major challenges.Generative AI is used as an entry point for many companies, allowing for hyper-personalized content such as tailored ads and product suggestions. Agentic AI goes a step further by acting on these insights in real-time, automatically adjusting prices and inventory. It also serves as an autonomous assistant for employees by handling repetitive tasks such as campaign optimization and demand forecasting, freeing up time for strategic and creative work.A significant challenge for CPGs is their historical lag in consumer data compared to their retail partners. Papasakelariou emphasizes that companies must build a direct relationship with consumers, such as through loyalty programs, e-commerce and interactive digital experiences. This gives consumers a reason to share their data. She also mentions the importance of working with retail partners through data clean rooms and retail media networks to fill data gaps. The key is to use AI to stitch this data together and turn it into actionable insights.Examples of successful data-driven personalization include Gatorade’s Gx Platform, which allows consumers to design their own bottles, leading to a significant boost in sales. Also, brands such as L'Oréal and Proven Skincare use AI to create custom beauty and wellness offerings. Digital innovations such as AI-enabled recommendations and augmented reality are changing how consumers discover and purchase products. Shoppers today expect convenience and seamless online-to-offline experiences. To adapt, CPGs must evolve from transactional marketing to a relationship-based engagement driven by AI and first-party data.Looking ahead, Papasakelariou advises companies to be future-ready by embracing automation and real-time data for decision-making. Personalization will go beyond simple recommendations to anticipating consumer needs and adapting messaging on the fly. She stresses that companies must also enable their teams with the right tools and training, as technology is only effective if people know how to use it. Ultimately, personalization is not just a future trend but a competitive advantage that drives lasting loyalty and success in a challenging market.

From Insights to Impact: Identifying the Pillars of Intelligent Personalization

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