Industry Research Finds Establishing a Foundation for AI is Top Priority for CPG Enterprises
MWN-AI** Summary
A recent industry report, the "State of AI in Consumer Goods," highlights that establishing an AI-ready infrastructure is of paramount importance for consumer packaged goods (CPG) companies. The research reveals that 82% of organizations are transitioning from outdated legacy systems to unified platforms that facilitate standardized data and processes essential for AI implementation.
The report indicates that 72% of CPG companies are either utilizing or planning to adopt agentic AI to enhance manufacturing operations. However, several barriers impede the adoption of AI technologies. Notably, 60% of respondents cite compliance and security concerns, alongside high costs and resource constraints, as significant challenges. Additionally, integration with existing systems poses a complexity that hampers AI deployment for 58% of firms.
Interestingly, a significant portion of the industry (64%) still relies on a combination of digital and manual processes to manage quality and compliance. This dependency on manual tasks with limited technological support increases risk, underscoring the urgent need for advanced data integration and automation to improve efficiency and reduce errors.
The appetite for AI-driven predictive analytics is strong, with organizations identifying it as critical for enhancing quality control and decision-making. A balanced approach across personnel, processes, and data is crucial for success, as indicated by the survey: comprehensive employee training, robust data infrastructure, and cybersecurity measures are seen as essential enablers for AI success.
The insights provided in this report reveal a pressing need for CPG enterprises to build a solid foundation for AI technologies if they are to overcome existing challenges and realize the transformative benefits of adopting advanced analytics in their operations.
MWN-AI** Analysis
The recent "State of AI in Consumer Goods Report" underscores a pivotal shift within the consumer product goods (CPG) sector, emphasizing the establishment of AI-ready infrastructures as a core strategic objective. With 82% of CPG organizations moving toward unified platforms, companies are clearly prioritizing standardized data and processes vital for AI deployment. This transition to unified systems emphasizes the necessity for connected, clean data, which is fundamental to optimizing AI applications.
However, the report also highlights significant challenges that hinder AI adoption in the CPG space. Compliance, security, and integration complexities were flagged by 60% of respondents, suggesting that while the push for AI is strong, existing legacy infrastructures pose substantial obstacles. Moreover, the continued reliance on manual processes by 64% of companies increases risk and inefficiency, which can counteract the potential benefits of advanced analytics.
For investors and stakeholders in the CPG industry, this represents both a challenge and an opportunity. The transition toward AI readiness will require investment in technology solutions and a shift in organizational culture. Companies prioritizing employee training, advanced data infrastructures, and stringent cybersecurity practices will likely emerge as leaders in this domain.
Furthermore, the emphasis on AI-powered predictive analytics indicates a growing trend towards real-time insights, enhancing decision-making capabilities and compliance—that's where organizations with effective AI strategies will find competitive advantages.
In conclusion, stakeholders should monitor companies that actively embrace these changes and invest in AI readiness. Firms demonstrating a commitment to overcoming technological barriers and fostering a culture of data-driven decision-making will likely be well-positioned for growth in this rapidly evolving market.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
82% of organizations moving to unified platforms for standardized data and processes, AI readiness
PLEASANTON, Calif., Jan. 27, 2026 /PRNewswire/ -- A new industry report shows that building an AI-ready infrastructure is a top priority for consumer product goods (CPG) companies. The State of AI in Consumer Goods Report found most (82%) respondents are actively consolidating legacy systems or transitioning from best-of-breed solutions into unified platforms. Moving to a platform can provide connectivity across systems for standardized data and processes, a critical requirement for applying AI use cases.
A majority (72%) of CPG companies are using, preparing, or planning to adopt agentic AI to advance manufacturing operations, signaling a need for advanced systems and processes that can provide clean, standard data. Key insights from the research on the CPG industry technology landscape include:
- Barriers to AI remain: Current technology infrastructures are deterring organizations from deploying AI and machine learning. The top three challenges include compliance and security (60%), high costs and resources constraints (60%), and integration complexity with existing systems (58%).
- Manual processes still prevalent, increasing risk: A majority (64%) of CPGs use a mix of digital and manual processes or mostly manual with limited tools to manage quality and compliance across the supply chain. Respondents that selected advanced data integration and process automation capabilities as most valuable for improving IT efficiency say it will reduce repetitive tasks and manual work and eliminate data silos.
- CPGs want AI-powered predictive analytics: The top three reasons respondents say AI-powered predictive analytics are the most valuable capability include driving quality and compliance assurance (24%), improving decision making and data-driven insights (21%), and delivering proactive issue detection and prevention (19%). This focus on real-time insights for quality control highlights a need for technology partners with a deep understanding of manufacturing and compliance requirements.
- People, process, and data key enablers for AI: Survey finds a balance across people, process, and data is critical for a successful AI launch. The top enablers are comprehensive employee training programs (72%), high-quality data infrastructure (66%), and AI cyber security and compliance (64%), signaling AI success will require coordinated organizational readiness.
"The State of AI in Consumer Goods Report shows that managing quality across numerous legacy systems is hindering AI-readiness. To use AI effectively, respondents are considering establishing a strong data foundation on a unified platform that can scale to realize clear value," said David Maher, head of strategy, Veeva QualityOne.
The State of AI in Consumer Goods Report polled more than 150 IT and functional leaders at global CPG companies in the U.S. The research examines the industry's AI-readiness, the challenges to AI-adoption, and areas of opportunity for IT to drive value and innovation. To learn more, read the full report.
About Veeva QualityOne
Founded in 2007, Veeva Systems is a global provider of industry-specific cloud software solutions that address the unique operating challenges and regulatory requirements of companies in the life sciences, consumer products, food and beverage, and chemical industries. Veeva QualityOne's solutions help hundreds of market-leading companies eliminate inefficiencies and bring high-quality, trusted products to market faster without compromising safety or compliance. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. Learn more at Veeva QualityOne.
For more information about Veeva's solutions for the global life sciences industry and the more than 1,500 customers it serves, ranging from the world's largest pharmaceutical companies to emerging biotechs, visit veeva.com.
Veeva Forward-Looking Statements
This release contains forward-looking statements regarding Veeva's products and services and the expected results or benefits from use of our products and services. These statements are based on our current expectations. Actual results could differ materially from those provided in this release and we have no obligation to update such statements. There are numerous risks that have the potential to negatively impact our results, including the risks and uncertainties disclosed in our filing on Form 10-Q for the period ended October 31, 2025, which you can find here (a summary of risks which may impact our business can be found on pages 33 and 34), and in our subsequent SEC filings, which you can access at sec.gov.
Contact:
Deivis Mercado
Veeva Systems
925-226-8821
deivis.mercado@veeva.com
SOURCE Veeva Systems
FAQ**
How does the adoption of AI-ready infrastructure by CPG companies, as noted in the report from Veeva Systems Inc. Class A VEEV, influence their competitiveness in the consumer goods sector?
What strategies are CPG enterprises considering to overcome the barriers to AI implementation identified in the Veeva Systems Inc. Class A VEEV report, particularly regarding data integration and cybersecurity?
In what ways can Veeva Systems Inc. Class A VEEV support CPG companies in transitioning to unified platforms for enhanced data standardization and AI utilization?
How critical do you think the role of employee training and high-quality data infrastructure, highlighted by Veeva Systems Inc. Class A VEEV, is in achieving successful AI adoption within CPG firms?
**MWN-AI FAQ is based on asking OpenAI questions about Veeva Systems Inc. Class A (NYSE: VEEV).
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