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Retail, Consumer Firms Seize Business Benefits of Analytics

1. AI tools increasing efficiency for retail and CPG companies, boosting profits. 2. ISG predicts significant profit increases from comprehensive AI transformations. 3. Emerging AI solutions optimize demand forecasting and inventory management. 4. Generative AI enhances creative functions and customer engagement for brands. 5. Specialist analytics providers drive complex transformation in retail and CPG sectors.

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FAQ

Why Bullish?

The report suggests strong future profits from AI adoption in retail and CPG, echoing previous trends where tech adoption led to significant stock price increases.

How important is it?

The emphasis on AI in retail and CPG aligns directly with ISG's core competencies, likely enhancing its market positioning and revenue.

Why Long Term?

AI transformations take time to implement, but their long-term benefits are clear, as seen in similar past industry shifts.

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-Specialist service providers help clients use AI-powered data tools for business insights, personalization, quick responses to trends, ISG Provider Lens® report says STAMFORD, Conn.--(BUSINESS WIRE)--Retail and consumer packaged goods (CPG) companies are transforming operations and gaining powerful new business tools using AI and advanced analytics, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.Retail and CPG are only beginning to scale up the most cutting-edge AI solutions, and the untapped potential is significant. ISG predicts comprehensive AI-powered transformation will substantially increase profit for companies that embrace it.Share The 2025 ISG Provider Lens® global Specialty Analytics Services — Retail and CPG report finds that enterprises are starting to implement data-driven capabilities throughout their businesses, from product innovation to supply chain management, merchandising, sales and customer engagement. Service providers that specialize in advanced retail and CPG analytics are empowering clients to innovate in several areas for increased efficiency and competitiveness. “Retail and CPG are only beginning to scale up the most cutting-edge AI solutions, and the untapped potential is significant,” said Rajib Datta, partner at ISG. “ISG predicts comprehensive AI-powered transformation will substantially increase profit for companies that embrace it.” Using advanced customer data platforms, AI and ML, retail and consumer brands are analyzing data such as consumers’ purchase histories and web and mobile behavior to refine customer segmentation and deliver personalized experiences, the report says. AI-enabled predictive analytics helps companies target promotions and product suggestions more accurately. AI is also allowing enterprises to optimize pricing based on factors including current demand and time of day, moving beyond intuition-based decisions. Emerging digital tools are also helping companies predict demand and control inventory more accurately, ISG says. ML-powered demand models incorporate historical sales, weather, social media trends and other factors, including anomalies such as sudden sales spikes. Some grocery stores now use AI-powered shelf scanners to see when products are sold out and automatically order more. Better demand predictions allow for tighter inventory control and better management of supply chain-related functions, including procurement and logistics. Retail and CPG companies are also starting to use generative AI and agentic AI for creative and analytical functions, the report says. Some are deploying GenAI models to automate the creation of social media content, personalized emails and packaging mockups. GenAI is even helping companies create new product ideas. Forward-looking retailers are piloting the use of AI agents to proactively update orders and reroute shipments on the fly as demand forecasts change. Specialist analytics providers are solving complex operational and customer analytics problems that traditional providers struggle to address, ISG says. The specialists couple advanced AI and ML capabilities with deep retail and CPG expertise and strong partnerships with major cloud and data platform providers, taking a consultative approach to lead clients through end-to-end transformation. “By collaborating with specialty analytics companies, retail and consumer brands acquire more than powerful solutions to current challenges,” said Manav Deep Sachdeva, senior manager and principal analyst, ISG Provider Lens Research, and lead author of the report. “They gain a trusted partner that can continue turning data into meaningful outcomes as technologies evolve.” The report also explores other trends affecting retail and CPG companies, including the emergence of mobile AI assistants to help sales associates and the emergence of algorithmic tools that forecast return on investment in promotions. For more insights into the analytics challenges facing retail and CPG companies, plus ISG’s advice for addressing them, see the ISG Provider Lens® Focal Points briefing here. The 2025 ISG Provider Lens® global Specialty Analytics Services — Retail and CPG report evaluates the capabilities of 21 providers in one quadrant: Retail and CPG. The report names Fractal Analytics, HARMAN Digital Transformation Solutions, LatentView Analytics, Lingaro, MathCo, Tiger Analytics and Tredence as Leaders in the quadrant. In addition, Sigmoid is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition. The 2025 ISG Provider Lens® global Specialty Analytics Services — Retail and CPG report is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens® Research The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. More News From Information Services Group, Inc.

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