AI in FMCG Industry: 11+ Use Case [2022]

Daten & Wissen / Nov. 15, 2021

Artificial intelligence (AI) is an emergent branch of Computer Science concerned with automating tasks that would typically require human intervention. This replication or simulation of Human Intelligence in machines helps eliminate the need for humans to perform excessive monotonous tasks. AI also helps in future analysis and predictions that would have otherwise been difficult, if not inaccurate when carried out by humans.

AI comprises Data Science, Machine Learning, Natural Language Processing, Deep Learning, and Computer Vision fields, these are major AI technologies that help transform the FMCG industry. Below mentioned are some of the trending Use Cases of AI in the FMCG / CPG industry.

Use of AI in the FMCG/CPG Industry

Artificial intelligence in the Consumer Industry is revolutionizing the FMCG domain by methods given below:

Sales Forecasting

By predicting customer purchases, the business gets an idea about the sales going to take place in the near future so that production can be planned accordingly. Accurate sales forecasts from the application of AI enables you to make informed business decisions and predict short-term and long-term performance. In case of a negative prediction, the necessary preventive measures can be taken.

Customer Behavior Analysis

This is the observation of customer buying patterns, preferred choices, least liked products, preferred locations, purchasing habits, tastes, and trends in the market. AI helps in making the required modifications to attract new customers, keep the existing ones satisfied and stand out in the market.

Consumer’s Sentiment Analysis and Decision Making

With the help of an AI solution, emotions can be scraped from the Internet in order to find out how customers feel about a product, brand, or service so that insight can be gained and businesses can respond effectively to their customers, thereby improving customer experience and engagement. Machine Learning can also automate decision-making and customer support.

Demand Sensing and Raw Material Consumption Prediction

Using deep learning frameworks, predict upcoming demand, and predict which raw materials would be needed in a period of time to prevent shortage or wastage of supplies. AI can interpret a huge amount of relevant data and provide relevant insights through the application of Machine Learning in the FMCG/CPG industry.

Tracking Market Trends

The AI-enabled system will inform you about the new trends or products that come into the market and instruct you on what trends are worth your company investing in. Machine Learning correlates price and sales and dynamically optimizes the price based on that insight.

By scraping from the various websites and social networking sites on the internet, and consolidating this data, we can provide comprehensive and detailed information for improved marketing techniques.

Automated Targeted Marketing

Instead of marketing to every nook and corner, why not market to people who would actually buy your product? Make your marketing system more intelligent with AI. The system will guide you as to which location to market in and use which medium or social networking site so that you have the exact target audience and avoid unnecessary marketing costs. When the right audience is reached, your clients will definitely increase. 

Logistics Management

Allow your retailers and customers to easily place orders directly from the company and then track their packages, thereby eliminating the need for a middle man in these times of Covid-19.

Allow raw material orders to be placed with your vendors automatically when scarcity is sensed, thereby preventing the need to keep a tab on every raw material that would need replenishing. Predict demand, reroute in-transit goods, and modify orders using AI. This will even lower your transportation costs.

Video Analytics Integrated with CCTV

Motion tracking and detection of equipment and employees using Video Analytics integrated with existing CCTV cameras will eliminate the need for full-time supervision. Identifies unsafe measures, detects unauthorized access, and keeps track of working of machines and equipment. Product counting, product identification, vehicle tracking, and monitoring, number plate recognition, and vehicle type identification can also be included. 

Recommendation Systems

Smart systems can be installed to understand customer buying patterns and preferences to suggest similar items, which will help with cross-selling and up-selling. This can also be based on what the customers buy from competitors. The correct items will be offered using different types of filtering.

Churn Prediction

Data and feedback provided by the customer can be used to predict the likelihood of the customer discontinuing their subscription with you. Churn prediction thus helps your industry gain a superior understanding of expected revenue. Furthermore, being able to forecast the potential churn rate of a particular customer allows you to target that individual more wisely.

Predictive Maintenance

Past data about the machine is used to predict failure beforehand and inform about the problem before it arises. Anomalies in operation are detected. It allows you to schedule maintenance when your equipment and machinery actually need it. Preventing machine breakdown will save overhead costs. IoT devices are attached to these machines for timely interaction.

Chat Bot

Chatbots for the FMCG industry can be used to eliminate manual tasks by integrating a Bot for your Website or App to coordinate with stakeholders, suppliers, retailers, and/or clients. It can also track packages, provide customer reviews, solve customer queries and FAQs.

Chatbots can be multilingual, i.e. they can interact in all languages desired. Another point to be noted is that our Chatbots are as kind and polite as your human customer care, if not much more. On top of that, we have developed an advanced conversational AI for the FMCG sector.


Should you Adopt AI in FMCG Industry?

It is not an easy task to resemble the massive production and heavy manufacturing that takes place in India. This calls for an even greater urgency to ease all the processes that can be automated. AI is being integrated into several processes, be it CCTV cameras, machinery, or decision making. While this occurs, new, and more intelligent roles are being created. There is a call for everybody to become more tech-savvy and every country to be more tech-advanced. 

FMCG companies have extensively started using AI, and before long, all FMCG companies will realize the importance of deploying AI into their businesses and will begin to invest huge amounts into its implementation. AI in consumer products and goods companies will become standard, and AI in FMCG industries for marketing, analysis, and automation will soon be deemed ordinary. 

Read Also

Video Analytics in Manufacturing

AI in the eCommerce Industry


Q: What are the Use Cases of AI in FMCG?

A: AI is used in various aspects of FMCG as - Tracking Market Trends, Sales Forecasting, Customer Behavior Analysis, Predictive Maintenance, Churn Prediction, etc.

Q: What is the role of AI in sales?

A: AI can help sales representatives identify the prospects who can buy from them and helps automate the sales process.

Q: Which industry uses the most AI?

A: AI is used in almost every industry, however, the manufacturing industry leverages the most from Artificial Intelligence solutions & they are getting major growth after utilizing AI.

Q: How is AI used in the Manufacturing Industry?

A: In the manufacturing industry AI is used on a large scale to solve many problems such as improving quality, consistency, demand forecasting, improving up-time, etc.


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Daten & wissen

Daten & Wissen is the team of expert AI engineers to help your business to embark on a transformational journey with the adoption of this futuristic technology.

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