Brands Need to Influence AI Algorithms to Reach Consumers, EY Research Shows

Marketing has traditionally focused on capturing shoppers' attention and influencing their purchasing behavior, but the EY "State of Consumer Products" report released in May emphasizes that brands need to adapt to a world where consumers are increasingly comfortable delegating their decision-making to AI. A survey of more than 850 senior consumer product executives and interviews with more than 20 C-suite executives in the industry revealed that 47% expected to need to influence algorithmic product recommendations within the next five years, but only 21% thought they could do so today."Growth today looks nothing like it did a few years ago," EY global and EY Americas consumer products sector leader Rob Holston said in a statement. "While many companies see the urgency, only a few are re‑engineering their sales and marketing systems for an AI‑driven, ecosystem‑based future. Most organizations are using AI for optimization and not opportunity."More than 77% of the survey respondents said that they are making partnerships with retailers, platforms and digital channels a key part of their go-to-market strategy so they can ensure visibility within their search, recommendation and retail media functions.In-store execution remains important, but access to customer data is increasingly important to ensure products surface in agent-driven commerce. Companies need to experiment with AI-enabled buying and figure out how to scale the capabilities they already have, or they risk falling behind.AI can help companies link their pricing, promotion and media strategies across their portfolio, but siloed systems remain a major challenge. Only 15% of surveyed organizations said their commercial data was fully integrated and regularly used to drive cross-functional decisions. Just 11% said their sales, marketing and e-commerce teams were working together to drive growth."AI can help transform how decisions are made, but it's not replacing human accountability," Holston said. "The real advantage comes from how organizations embed AI across the commercial system in a way that strengthens human judgment, not sidelines it. Value isn't created in sales, marketing or supply chain in isolation; it comes from the closed loop between them, enabled by the right people, data and governance."This article was originally published on P2PI sibling brand Consumer Goods Technology.

Brands Need to Influence AI Algorithms to Reach Consumers, EY Research Shows

P2PI MEMBERS

JOIN P2PI

Business Topic

Market Segment

Popular Articles

P&G Expands Retailer Conversations Beyond Pricing, Promotions

P2PI Events

2026 OmniShopper Awards Winners

P2PI Names 40 Under 40 Class of 2026

P2PI Names 2026 Hall of Fame Inductees