Leading the Charge: How AI and Cybersecurity are Redefining the CPG Industry
As market demands shift, competition intensifies, and supply chain complexities grow, technology has become the driving force behind operational efficiency and business resilience.
According to Rockwell Automation’s 9th Annual State of Smart Manufacturing Report, industry executives are prioritizing AI-driven automation and cybersecurity to improve efficiencies, enhance decision-making, and protect against rising cyber threats.
With 83% of CPG manufacturers planning to integrate Generative AI into their operations this year, and cybersecurity breaking into the top five external risks for the first time, it’s clear that these two technologies will shape the industry's future.
The Industrial AI Revolution: Shifting from Vision to Reality
Artificial Intelligence (AI) is a competitive necessity for organizations today. Whether it’s unlocking the value of existing operational data and specialized knowledge or augmenting human capabilities with AI-driven insights, these solutions are transforming manufacturing operations at a rapid pace.
Key findings highlight AI’s increasing role in the industry:
- 83% of CPG leaders anticipate using Generative AI (GenAI) in their operations in 2024.
- Gen AI ranks #2 in return on investment (ROI), second only to Cloud/SaaS solutions.
- It is the #1 area for technology investment in the next 12 months.
This prioritization underscores AI’s ability to reduce troubleshooting time from hours to minutes streamline supply chains and enhance productivity. AI-driven automation helps manufacturers predict demand more accurately, minimize waste and improve production efficiency using real-time data analytics.
Improved efficiency achieved with AI doesn't just equal cost savings, it also means faster time to market, allowing organizations to stay ahead and get products to market faster than their competitors.
It’s important for organizations to not only think about the benefits to process, but product as well. Leveraging AI can allow companies to better anticipate consumer preferences, optimize inventory levels and ultimately drive innovation. AI agents and copilots can be used to generate new product concepts, simulate outcomes to optimize designs and automate data gathering for product evaluation and compliance purposes.
Cybersecurity: A Growing Risk and Skill Priority
As AI adoption accelerates, cybersecurity has become a pressing concern for CPG leaders. Cyberattacks targeting manufacturing firms have surged in recent years, with many companies experiencing costly disruptions due to security breaches.
With increased digitalization comes greater exposure to cyber threats, including ransomware attacks, data breaches, and supply chain vulnerabilities.
The Rockwell Automation report found:
- Cybersecurity is now one of the top five external risks for CPG manufacturers.
- It ranks as the #1 skill employers were seeking in 2024.
- It is predicted to be the #2 area most impacted by AI in the next three years.
This growing focus on cybersecurity highlights the industry's urgent need to protect critical data, ensure regulatory compliance, and maintain operational continuity.
CPG organizations must ensure robust governance and multi-layered security to protect data, maintain compliance and mitigate risks.
Key security measures include:
- Data Protection: Use data anonymization and role-based access controls to safeguard sensitive information.
- Usage Guidelines: Establish ethical guidelines and prompt shields to prevent misuse.
- Auditing: Conduct cybersecurity risk assessments and continuous monitoring to address vulnerabilities.
We dive into this more in our Practical Strategies for Using Generative AI Tools in Your Organization Viewpoint.
How Consumer Packaged Goods Leaders Can Stay Ahead
As AI and cybersecurity continue to reshape the CPG industry, companies must take proactive steps to ensure they are not left behind.
Key strategies for success include:
- Investing in AI for Efficiency and Innovation: From predictive analytics to automated quality control, AI can drive measurable improvements in production, customer insights, and operational efficiency. Prioritize AI solutions that align with business goals and offer clear ROI.
- Strengthening Cybersecurity Resilience: With cyber threats on the rise, manufacturers must implement robust security protocols, AI-driven threat detection, and employee training programs to protect critical assets.
- Bridging the Digital Transformation Execution Gap: While the desire for smart manufacturing is high, execution remains a challenge. Companies should focus on scalable solutions, cross-functional collaboration and workforce upskilling to drive meaningful progress.
As companies navigate increasingly complex areas of innovation, the need for smarter automation, stronger security, and seamless digital thread integration has never been greater.
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