From Pricing to M&A: "AI Emerges as the Core of Innovation in the Consumer Goods Industry"

Samil PwC Releases Report
Strategies for AI-Driven Business Transformation in the Consumer Goods Industry

There is an analysis that artificial intelligence (AI) technology has become the core driving force of innovation, fundamentally transforming the way the consumer goods industry operates and the customer experience.

Samil PwC recently announced the publication of its report titled "Next in Consumer Market - AI, From Experimentation to the Center of Industrial Innovation," which covers these findings.

According to the report, consumer goods companies have moved beyond simply adopting AI technology and are now entering a stage where they are redesigning their organizational operations and processes. In fact, more than 67% of executives in the consumer goods market expect that investment budgets for cloud adoption will increase depending on the level of generative AI utilization.

The report presents the acceleration of AI-based digital value creation as the first strategy. A notable example is a well-known pharmacy chain that introduced digital services for consumers, resulting in cost savings of over 100 billion KRW. The report states, "AI-powered pricing, inventory management, and marketing automation are evolving beyond simple efficiency improvements to simultaneously enhance customer satisfaction and operational performance," adding, "The key is not to partially apply AI to existing processes, but to integrate it across the entire business and operate it under human supervision."

The report also emphasizes AI-driven mergers and acquisitions (M&A). AI has been used as a core decision-making tool in all processes, including performance analysis, investor relations, and post-merger integration (PMI), thereby increasing the precision of M&A activities. In particular, real-time data analysis based on AI has been shown to play an important role in restructuring corporate business portfolios. The report advises, "Consumer goods companies are increasingly seeking to acquire businesses with innovative technology and digital capabilities using AI," but also notes, "It is necessary to thoroughly review the effectiveness of AI technology, the value of data, and the appropriateness of acquisition prices."

The importance of AI-based security strategies was also highlighted. The report explains that it is necessary to review existing security system structures and effectively manage risks associated with AI investments through the concept of 'responsible AI.' It recommends ensuring transparent governance systems and guaranteeing customer choices regarding data usage.

In addition, the report presents strategies for: innovating Generation Z customer experiences; AI-based pricing models tailored to real-time changes in consumer behavior; and responses to tax and regulatory issues.

Jung Nakyeol, Consumer Goods Industry Leader (Partner) at Samil PwC, stated, "AI is fundamentally transforming not only the way the consumer goods industry operates but also its relationships with customers," adding, "The key to future competitiveness lies in integrating technology into strategies, organizations, and culture, moving beyond the simple adoption stage."