How AI Will Impact the FMCG Sector. Everything You Need to Know...

livemint.com:

Indian Fast Moving Consumer Goods (FMCG) sector is on the cusp of a technological transformation, where Artificial Intelligence (AI) emerges as the guiding force reshaping every aspect of its landscape. From the shelves that hold your morning cereal to the ads that catch your eye online, AI is revolutionizing how FMCG operates, adapts, and thrives in a dynamic market. While the use of AI is still in early stages in the Indian FMCG industry, it is only a matter of time, before it is used extensively.

With the inclusion of AI, the Indian FMCG industry could see an improvement in efficiency, reduction in costs, and better quality of products and services. Here are some of the areas where, we at Equitymaster, believe that AI could bring significant growth - AI-driven predictive analytics can streamline supply chain operations, forecasting demand with remarkable accuracy. This reduction in uncertainty translates to minimized overstocking or stockouts, optimizing inventory management and ensuring smoother logistics.

AI's ability to process massive data sets swiftly can enhance manufacturing processes, leading to improved quality control, reduced defects, and increased output. This not only heightens the standard of products but also contributes to cost-efficiency. AI empowers FMCG companies to understand consumer preferences at a granular level.

By analyzing data from diverse sources, including social media and purchase history, AI can create personalized marketing campaigns that resonate with individual customers, driving higher engagement and brand loyalty. Chatbots and virtual assistants powered by AI can offer round-the-clock customer support, swiftly addressing queries and concerns. This seamless interaction fosters