Generative AI for Retail and CPG: Balancing Core Value and Innovation Amid Data Imperfection

Navigating the GenAI Opportunity in Retail and CPG

Retail and consumer packaged goods (CPG) companies stand at a pivotal moment. Generative AI (GenAI) promises to revolutionize everything from customer engagement to supply chain optimization, yet the path to value is far from straightforward. The sector’s unique challenges—fragmented data estates, complex supply chains, and the relentless pressure to innovate—demand a pragmatic, business-first approach to GenAI adoption. The imperative is clear: focus on core value, but leave room for innovation, even when data is less than perfect.

The Reality: Data Imperfection Is the Norm

For RCPG leaders, the data landscape is inherently messy. Mergers, acquisitions, and legacy systems have created sprawling, inconsistent data estates. As one CPG executive put it, “You’re going to get new garbage in all the time; that’s the nature of big business.” The pursuit of perfect data is a fool’s errand—especially in retail and CPG, where new products, channels, and partners constantly introduce new data sources and formats. The key is not to wait for perfection, but to move forward with what you have, using GenAI to extract value and drive improvement.

GenAI: Progress Over Perfection

GenAI’s strength lies in its ability to optimize and reinvent processes—even with imperfect data. Rather than stalling initiatives in pursuit of a flawless data foundation, leading RCPG organizations are starting small, focusing on targeted use cases, and building trust through pilots and proofs of concept. This approach enables them to:

Demonstrate value quickly in areas like customer support, supply chain forecasting, and content generation.
Educate the enterprise and build internal momentum for broader GenAI adoption.
Iterate and improve data quality and processes as they scale successful pilots.

Prioritizing Use Cases: Where GenAI Delivers Value

Retail and CPG companies are seeing tangible benefits from GenAI in several core areas:

Productivity and Efficiency: Automating repetitive tasks, such as legal document formatting or responding to procurement questionnaires, delivers immediate gains.
Customer Engagement: Real-time analysis of in-store and online activity enables the creation of dynamic, data-powered personas, driving more targeted and effective marketing.
Supply Chain Optimization: Predictive analytics powered by GenAI can anticipate component failures, optimize inventory, and streamline logistics—even when data is incomplete or inconsistent.
Content and Campaign Personalization: GenAI accelerates content creation and campaign optimization, allowing brands to tailor messaging at scale and respond rapidly to market changes.

Balancing Core Value and Innovation

The most successful RCPG leaders are those who balance a focus on core business value with a willingness to experiment. They:

Ground GenAI strategy in business objectives, not just technology potential.
Start with high-impact, low-risk pilots that address real business problems.
Create space for innovation, using R&D budgets to explore new business models and value streams enabled by GenAI.
Accept that not every use case will have a traditional business case—some investments are about future-proofing and learning.

Overcoming Barriers: Data, Talent, and Trust

Three primary barriers often slow GenAI progress in retail and CPG:

Lack of a structured plan for use cases and investment.
Difficulty finding, training, and retaining AI talent.
Data quality and strategy challenges.

The solution is to focus on use cases that can deliver value with available data, invest in upskilling the workforce, and build trust through transparent, responsible AI practices. Rather than waiting for a perfect business case, leading organizations move through spheres of influence—demonstrating value in one area, then expanding to others.

From Pilots to Scale: Building Trust and Momentum

Most RCPG organizations are still in the pilot stage with GenAI, but the leaders are moving quickly to scale. The path forward involves:

Starting small: Prove value with focused pilots in areas like customer service, supply chain, or marketing.
Educating stakeholders: Build understanding and buy-in across business and IT.
Iterating and scaling: Use learnings from pilots to refine data strategies, improve processes, and expand GenAI adoption.
Embedding GenAI in both employee- and customer-facing solutions: Most leaders expect to deploy GenAI across these areas within the next two years.

Publicis Sapient: Guiding RCPG Clients from Proof-of-Concept to Production

Publicis Sapient partners with retail and CPG leaders to navigate the complexities of GenAI adoption. Our approach is grounded in:

Advisory-led strategy: We help clients define the “why” of their GenAI journey, aligning technology investments with business objectives and value creation.
Verticalized solutions and platform accelerators: Our industry-specific tools and platforms, such as PS Slingshot and Bodhi, accelerate time-to-value and enable rapid scaling.
Co-innovation and ecosystem partnerships: We work alongside clients and leading technology partners to develop, test, and scale GenAI solutions tailored to the unique challenges of retail and CPG.
Responsible AI frameworks: Our PS GAI Ethics and Responsible Use Framework ensures that GenAI deployments are transparent, ethical, and aligned with regulatory requirements.

Real-World Impact

For a global CPG client, we enabled real-time customer persona creation, driving more effective targeting and improved campaign performance.
For a leading retailer, we deployed GenAI-powered agents to enhance customer support and streamline operations, delivering measurable productivity gains.
For a multinational brand, we accelerated content creation and campaign optimization, reducing time-to-market and increasing marketing ROI.

The Bottom Line: Act Now, Improve as You Go

In retail and CPG, waiting for perfect data or a flawless business case is a recipe for missed opportunity. The leaders are those who act now—improving business-as-usual while innovating toward new sources of value. By focusing on pragmatic use cases, building trust through pilots, and scaling successful experiments, RCPG companies can unlock GenAI’s potential—even amid data imperfection and organizational complexity.

Publicis Sapient stands ready to help retail and CPG organizations move from proof-of-concept to production, balancing core value with innovation to drive sustainable growth in the GenAI era.