Wake-Up Call for the CPG Market: How AI Influences Purchase Decisions

Artificial Intelligence (AI) has become a part of consumers’ daily lives—and their purchasing decisions. How does AI impact the CPG industry? How do consumers view this technological development? And how can retailers respond now to stay competitive? The brand-new report “AI in Consumer Packaged Goods” provides solid answers.

High Expectations for Product Improvements through AI

A survey of 2,000 UK and German consumers reveals what they expect from AI and their customer experience in 2024 and beyond. One of the key findings: consumers have a generally positive view of AI in retail. The majority (65 %) are aware that AI technologies are already being used in various areas of consumer goods production and marketing—and expect these technologies to improve product quality.

These hopes are closely tied to another central theme in the CPG industry: sustainability. Consumers expect AI to reduce negative environmental impacts in the consumer goods industry, such as through more climate-friendly production, resource-efficient packaging design, and more efficient distribution and logistics.

Willing to Pay More – With One Condition

Given that sustainability has become an increasingly important quality factor for consumers in recent years, it influences not only their purchasing decisions but also their price sensitivity: In the report, 3 out of 5 respondents said they would be willing to pay more for AI-optimized products if they help meet higher ethical and environmental standards. A majority (72 %) even expect that more sustainability driven by AI improvements will lead to price increases—and they would be willing to accept this.

CPG retailers can see this as an incentive to invest more focused in sustainable business models. However, in order to apply the (theoretically) higher willingness to pay to their own portfolio, companies are required to communicate transparently and clearly how they are reducing their ecological footprint, among other things, with the help of AI.

Room for Improvement: AI in Customer Service

Consumers are also open to AI applications in customer service and generally enjoy interacting with them. They also expect innovative solutions like intelligent chatbots and call management systems to play an even larger role in the future. However, they are far from satisfied with the current quality of AI in customer service. To excel in this area and optimize both buying journeys and after-sales processes, CPG retailers must prioritize the development and professionalization of their AI services. As technology advances, consumers will inevitably expect higher service standards in terms of effectiveness, reliability, and quick problem resolution.

AI in the CPG industry: Adaptability is Key

The survey results serve both as encouragement for CPG companies already using AI applications and as a guide for those still looking for the right levers to improve their offerings with intelligent technologies. With concrete figures and conclusions, the report underscores once again why innovation and agility must be key elements of all strategic considerations. Those who wish to gain deeper insights and recommendations for action can now download the complete report “AI in Consumer Packaged Goods” by valantic, Spryker, Storyblok, and Amazon Web Services for free.

If you would like to gain deeper insights and recommendations for action, you can now download the complete Report ‘AI in Consumer Packaged Goods’ from valantic, Spryker, Storyblok and Amazon Web Services free of charge.