
Cognitive
Copilots in
CPG & Retail:
AI emerges as a highly potential technology for
Revenue Management in CPG and Retail sectors,
compared to the commonly used Business
Intelligence (BI) software and Machine Learning
algorithms. While GenAI can generate numerous
new opportunities in forecasting and
predictive/prescriptive analytics, AI Cognitive
Copilots stand apart with their numerous unique
features and functionalities.
Cognitive Copilots can help businesses manage their revenue more effectively by providing real-
time insights into financial performance (such as revenue, expenses, and profit margins) and
accurate forecast of the financials measures. With the capability to enable retail execution, Cognitive
Copilots allow field team to take pricing decisions and provide access to strategic pricing and client
inf ormation on the go. The accurate performance management becoming a reality and no longer
just a dream of generations of Sales Managers, now that they have AI Copilots.
Many CPG and Retail companies find it challenging to keep up with the fast pace of online retail
because their traditional pricing strategies are too rigid and slow to adapt to changing market
dynamics. However, Cognitive Copilots are revitalizing these outdated business models. The AI tools
leverage advanced ML Algorithms to analyze large datasets and create pricing strategies that can
quickly adjust to market changes, and business goals. Furthermore, by delivering insights directly to
business users and decision-makers through intelligent alerts and notifications, Cognitive Copilots
accelerate business processes and enhance the precision of pricing decisions. Cognitive Copilots
can also assist in navigating the pricing landscape amidst inflation and identifying cost-saving
opportunities within organizations, thereby mitigating the impact of inflation on overall expenses.
With millions of simulations running in the background, Cognitive Copilots help businesses manage
negative mix effects, which can significantly impact revenue. Negative mix effects arise when
changes in product prices and quantities lead to a revenue decline.
Promotion planning and execution with Cognitive Copilots reduce complexity and improves ROI. It's
a stark reality that Revenue Management teams often have limited capabilities. Analytics activities
are mostly ad-hoc in nature and discussed in silos across the Revenue Growth Management (RGM)
team. Historical promotion effectiveness analytics is also conducted ad-hoc by RM team members.
However, with Cognitive Copilots, any member of the Finance, Marketing, or Revenue Management
teams can directly talk to the Promotion Calendar and Promotion Analytics, gaining insights in a
matter of seconds without the need to initiate ad-hoc analytics from the Revenue Management
team.
Revenue Management
and beyond