Transforming Consumer Industries in the Age of AI 2025

2.4 The rewards of investing strategically are apparent even as the bar continues to rise According to Jensen Huang, Founder and Chief Executive Officer of NVIDIA, AI agents will be a multi- trillion-dollar opportunity.26 Leaders who recognize and invest in agentic architecture as a strategic imperative will be well-positioned to shape the future of their industries. Overall, one in three companies is already pivoting towards innovating with agentic AI, and those that are moving most swiftly are already carving out a competitive edge. It is also important to note that, with the increased autonomy introduced by agentic networks, a new set of risks may emerge, further emphasizing the need for responsible deployment planning. As stated by Huang, “The IT department of every company is going to be the HR department of AI agents in the future.”27 In the next few years, the use of AI with other leading and emerging technologies will only accelerate. The combinatorial power of AI and cloud, edge, 5G, IoT, spatial or quantum computing will enable unprecedented agility, responsiveness and scalability. For example, consumer packaged goods companies can use IoT sensors in production facilities to feed real-time data into genAI systems, enabling self-optimizing supply chains that respond in near-real time. Edge computing can localize AI processing on the factory floor, reducing latency for time-sensitive quality control tasks like detecting contaminations in production. These technologies also drive each other forward – Google’s AI-designed the Willow chip, for example, demonstrates how quantum computing advancements can solve complex optimization challenges, transforming areas like ingredient sourcing, inventory management and even dynamic pricing models.28 Another wave of AI – physical AI – is already taking shape. Physical AI stands to enable autonomous machines like robots to perform complex actions, redefining industrial digitization. As highlighted by NVIDIA’s work with KION Group and Accenture, AI-powered robots and digital twins are already transforming supply chains and unlocking value in the warehouse and distribution centre market (worth $1 trillion), paving the way for software- defined, fully automated operations.29 Ultimately, the leading companies will be those that understand these technologies better than others and get their organizations to adopt (and adapt to) them faster and more effectively than the competition. Doing so requires a new approach to strategy, which is explored in the next chapter. The IT department of every company is going to be the HR department of AI agents in the future. Transforming Consumer Industries in the Age of AI 16