Demand is increasingly shaped before consumers start shopping, with retailer platforms, algorithms and AI agents setting the purchase agenda. Signals move faster, interact in more complex ways and influence purchase outcomes earlier. In this Consumer Products (CP) environment, individual decisions about pricing, promotion and media are less important than how decisions connect across the business.
This year's CP report explores why many CP leaders are stuck in an Optimization Trap of chasing efficiencies without addressing structural issues in disconnected operating models.
Concurrently, we show how a Decision Gap is emerging that separates insight from action throughout the enterprise and quietly erodes growth, margin and relevance.
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Sales and marketing remain the growth engine of Consumer Products. But even after significant investments in AI, data and analytics in sales and marketing, the engine is leaking value. Adding AI to functions in isolated use cases creates efficiency for the function, not growth for the enterprise. Years into the AI age, it’s clear that unless companies apply AI capabilities across the commercial model it has limited impact on business outcomes.
Accessibility description: This chart highlights that transformation is underway, but value creation remains limited across consumer products functions:
This chart highlights that transformation is underway, but value creation remains limited across consumer products functions:
Our research shows that many CP companies are improving individual decisions without addressing operating model disconnections and widening the Decision Gap.
As demand moves upstream, value is getting lost where decisions fail to connect — between pricing, promotion, media, portfolio and supply. The companies that redesign how decisions are made, governed and carried through end to end will have an advantage.
CP leaders agree that developing product signals geared to AI agents is a key sales and marketing priority, but few believed that their organizations were capable of influencing algorithmic recommendations.
Accessibility description: This chart illustrates how long‑term value creation increasingly depends on the ability to influence agents and algorithms, based on the share of respondents who believe each capability will be a competitive advantage versus merely required to compete:
This chart illustrates how long-term value creation increasingly depends on the ability to influence agents and algorithms, based on the share of respondents who believe each capability will be a competitive advantage versus merely required to compete:
The full EY Reclaiming Relevance: Sales and Marketing in an AI world goes deeper into the forces driving change in sales and marketing functions and explores what leadership teams can do now.
Executive interviews and secondary analysis within 24 markets across the Americas, Europe, Asia-Pacific and the Middle East and survey results from more than 850 senior Consumer Products executives
More than 20 interviews with Consumer Products C-suite executives and industry analysts who provided deep insights into emerging challenges, decision-making dynamics and leading practices
Learn how to ignite relevance through sales and marketing in an AI world