Transforming Consumer Industries in the Age of AI 2025

Introduction The consumer industries’ value chain, across all key sectors – agribusiness, consumer goods and retail – is on the brink of change that will have a transformative and lasting effect on business, people and society. For consumers, artificial intelligence (AI) technologies, including generative AI (genAI), hold the promise of reshaping expectations and experiences that align with their evolving needs and values. For businesses, they herald a future with unprecedented value creation, not only from cost efficiencies but also from unlocking new revenue streams, improving sustainability and enhancing consumer and customer experiences. As forward-thinking businesses progress beyond experimentation to scaling new ways of operating end-to-end, they will recast everything from how products and services are conceived to how teams of people execute their work, how leaders manage and how consumers engage (Figure 1).Using the full potential of AI technologies to reinvent the consumer industries relies on making responsible decisions now. Types of change under way and anticipated FIGURE 1 Dark factories Accelerates progress to achieve fully automated manufacturing, where AI systems run production linesEnd of stockouts Heralds AI-powered inventory systems predicting demand with near-perfect accuracy“Next-best action” revolution Signals a shift towards AI-driven decision- making that identifies optimal next steps for employees and consumersInnovation in silico Represents an R&D breakthrough, where AI-driven simulations vastly accelerate product development cycles Agentic commerce Promises automated transactions, where AI systems engage across enterprises without human involvementEmotionally intelligent agents Marks new opportunities in consumer engage- ment, where systems analyse real-time emotional data and deliver more relevant interactions AI for sustainability Leaders harnessing AI for sustainability while mitigating the environmental impact of AI systemsAI-fit leadership Reflects the need for a leadership approach that says, “use this” rather than “do this”, where data, ethics and advanced technologies inform strategic thinking and innovation The hybrid workforce Signals a skills-centric approach to talent management where organizations support employees to collaborate with machines, creating more fulfilling roles Managem entExecutionEngagement Conception AI future Source: Accenture.A time of transformative change Transforming Consumer Industries in the Age of AI 6