Executive summary Artificial intelligence (AI) technologies, particularly generative AI (genAI), are beginning to transform how people work, shop and live. These advancements promise exponential productivity gains by automating and augmenting routine tasks. More broadly, they open opportunities for complete enterprise reinvention, enhancing creativity and enabling organizations to refine offerings, bolster innovation and create new value. To ensure long-term impact, it is crucial that growth and transformation driven by AI technologies are pursued responsibly, maximizing benefits for both businesses and the consumers they serve. Within the next five years, many organizations are expected to reimagine every part of their value chain. Moreover, AI’s evolution is accelerating with innovations such as agentic AI, which stands to change the very nature of how work gets done. Agentic AI can take proactive actions without human oversight, executing tasks independently and streamlining decision-making processes. At scale, it will integrate proprietary data to deliver actionable insights, refine strategies and drive value creation. No longer just a tool, AI will become an intuitive collaborator, augmenting human decision-making and cultivating empathetic, human-like interactions. When combined with technologies such as 5G, the internet of things (IoT) and quantum computing, it will redefine how humans and technology interact. Meanwhile, consumer adoption of AI technologies is poised to trigger the most significant shift in purchasing behaviour in decades. Future readiness is crucial, as people born into this era of connectivity (the genAI generation) expect increasingly seamless and hyper-personalized purchasing experiences. Most organizations are still experimenting with the technology in isolated areas, focusing on efficiency gains. Scaling its transformative potential will require a more visionary approach, using new frameworks (called “mega processes” in this paper) to rethink traditional business functions such as strategic planning, innovation and growth, customer and consumer engagement, and operations and supply chain management. It will also require a focus on three critical enablers: 1. People, talent and leadership: W ith 40-60% of activities expected to be automated or augmented by genAI across consumer industries, leaders must empower employees to transition successfully. 2. The digital core: Companies need to integrate processes, data and infrastructure to support dynamic operations. 3. Responsible AI practices: Leaders must prioritize trust, transparency, data governance and environmental sustainability. Ultimately, leaders across industries and the public sector will also need to align and collaborate around a set of unified goals. Key areas for the Consumer Industries community to discuss and debate include: –Achieving sustainability targets: Using AI to address challenges such as Scope 3 emissions. –Advancing cross-industry data sharing: Tackling industry pain points and unlocking new value. –Empowering workforce transitions: Equipping people with the skills and tools needed for the future of work. –Establishing self-governance: Building trust through harmonized standards for consumer data privacy, algorithmic fairness and ethical AI use in marketing. By aligning priorities and cultivating collaboration across public and private sectors, the consumer industries can create a resilient and inclusive future where efficiency improves, innovation thrives and trust grows.Realizing the potential of today’s technologies requires bold, responsible leadership, visionary strategies and ecosystem-wide collaboration. Transforming Consumer Industries in the Age of AI 5

Transforming Consumer Industries in the Age of AI 2025