- Report from BCG and The Consumer Goods Forum Finds Roughly 75% of CPG Companies Remain in Pilot Mode
- 45% of Retailers Are Scaling AI, While a Similar Number Have Barely Begun
- More Than Half of Surveyed Companies Do Not Formally Measure AI ROI
- Leaders Are Pulling Ahead by Concentrating AI on Core Commercial Processes That Drive Growth
BOSTON—Many CPG and retail companies have yet to deploy AI broadly across the demand-generating processes that they consider most strategic. In a new survey, nearly half of CPG executives identified idea to market as the most strategic process for AI, yet only 11% have scaled AI in this space. Retailers exhibit a similar pattern: 46% named offer to assortment as their top priority, but only 34% have scaled AI significantly in that area.
These are among the findings of AI in CPG and Retail: How Winners Are Pulling Ahead, a new report from Boston Consulting Group (BCG) and The Consumer Goods Forum (CGF). Based on a survey of 39 senior CPG and retail executives worldwide, the report examines how companies are applying AI across the commercial processes that drive demand—from innovation and pricing to assortment, forecasting, and customer engagement.
“The reason that some CPG companies and retailers are pulling ahead isn’t necessarily that they started from a stronger position,” said Nicolas De Bellefonds, BCG’s global AI lead and a coauthor of the report. “They set higher ambitions, mobilize their organizations around a few focused priorities with discipline, and effectively manage their data and technology ecosystems.”
Real but Uneven Progress
- Roughly 75% of CPG respondents remain in pilot mode or exploration mode, while only 18% are scaling impact.
- Retailers represent a two-speed world in which 45% are scaling impact but another 40% have barely begun.
- Across both sectors, more than half of companies do not formally measure the ROI of their AI investments.
- The most frequently cited barrier to scaling is that pilot economics did not translate into full-scale business results.
What Leading Companies Are Doing Differently
Although there are opportunities to deploy AI in support functions and to reset cost structures, the greatest potential for consumer companies lies in using AI to drive growth.
The value at stake is substantial. Scaling AI initiatives throughout the demand value chain could deliver 220 to 350 basis points of cumulative EBIT for CPGs and 180 to 360 basis points for retailers. Agentic capabilities could expand the opportunity nearly twofold over the next two to three years—up to 1.7x for CPG and retailers.
Six Questions for CEOs
The report identifies six questions that leaders should ask as they assess their AI readiness and transformation efforts:
- Are we aligning AI investments with strategic priorities?
- Are we ambitious enough, and how do we measure impact?
- How do we improve the odds of successful and sustainable transformation?
- What are the broader impacts on the workforce and operating model?
- How should we think about our data assets and tech partnerships?
- How do we move quickly without losing control of risks and costs?
“For CEOs, the honeymoon phase with AI is officially over. It cannot be a tech experiment anymore; it is a direct lever for your bottom line,” said Wai-Chan Chan, managing director at CGF. “The next two years will separate the leaders who are actually scaling these systems from the ones who are just talking about them.”
Media Contacts:
Eric Gregoire, gregoire.eric@bcg.com
Cesar Valadares-Colomb, c.valadares@theconsumergoodsforum.com
About The Consumer Goods Forum
The Consumer Goods Forum (“CGF”) is a global, parity-based industry network that is driven by its members to encourage the global adoption of practices and standards that serves the consumer goods industry worldwide. It brings together the CEOs and senior management of some 400 retailers, manufacturers, service providers and other stakeholders across 70 countries and reflects the diversity of the industry in geography, size, product category and format. Its member companies have combined sales of EUR 4.6 trillion and directly employ nearly 10 million people, with a further 90 million related jobs estimated along the value chain.