In the fast-paced world of retail and manufacturing, artificial intelligence (AI) is becoming a game-changer. Kantar’s recent Category Leadership study explores how AI is transforming category management, providing valuable insights and strategies for leveraging this technology to stay ahead in a competitive market.
AI: A Friend, Not an Enemy
One key takeaway from the Category Leadership study is that AI enhances rather than replaces category management talent. Contrary to the myth that AI will take over human-driven category management, the perception is that AI will augment it. By automating tedious tasks, AI allows category managers to focus on strategic initiatives, making category management more efficient and effective.
Investment in AI Technologies
Manufacturers and retailers are prioritizing AI investments over the next 2-3 years. The study highlights that the highest percentages of planned investments are in AI for category analytics and supply chain management. This shift underscores the growing recognition of AI's potential to drive efficiencies and optimize decision-making processes.
Current Use of AI
Retailers and manufacturers are largely aligned in their current use of AI, with shopper insights and performance monitoring being top priorities. For manufacturers, AI is primarily used for shopper insights, performance monitoring, and new product innovation. Retailers focus on shopper engagement, performance monitoring, and shopper insights.
Positive Impact of AI
AI is seen as having a net positive impact across various planning functions. The study identifies demand planning, competitive analysis, and pricing strategy as areas where AI has the most significant positive impact. Other functions positively impacted by AI include trend identification, shopper research, strategic business planning, promotional planning, and assortment planning.
Future Differentiators
Looking ahead, the use of AI in category management likely will be a key differentiator between companies. Retailers believe that AI will thrive and become a crucial tool, with early adopters leading category growth in the future. Manufacturers view AI as a means to enhance human potential rather than replace it, emphasizing the importance of spearheading the associated changes and advancements effectively.
