Bridging the AI Gap in Grocery and CPG Insights

The grocery and consumer packaged goods (CPG) industries are experiencing rapid digital transformation, but the full potential of artificial intelligence (AI) in this space is still largely untapped. While e-commerce and digital channels continue to expand, many brands face a digital divide in CPG data—fragmented systems and siloed insights that limit their ability to fully leverage AI. As a result, they miss opportunities for smarter decision-making, faster responses, and deeper customer insights.

AI is transforming marketing analytics, marketing mix modeling, and multi-touch attribution—helping businesses measure performance more accurately and optimize strategies with precision. The brands that bridge the AI gap now will define the competitive landscape in the years ahead. Learn more in our blog: here.

AI and E-Commerce Growth

E-commerce growth is accelerating across retail sectors, creating more data than ever before. According to Oberlo, U.S. e-commerce sales are expected to grow by 8.6% in 2025, reaching nearly $1.3 trillion and accounting for 17% of total retail sales—up from 16.2% in 2024. Globally, e-commerce will surpass 20% of retail sales this year and is projected to reach around 21% in 2025.

This data explosion presents a challenge and an opportunity: traditional analytics can’t keep up with the speed and volume of information, but AI systems can process it in real time—detecting patterns, predicting demand, and uncovering insights that would be invisible otherwise.

Retailer AI Innovations

Major retailers are already embracing AI to improve operations and customer experiences:

• Walmart and Target are integrating AI into their fulfillment systems to optimize inventory and speed up delivery for grocery orders.
• Amazon is expanding same-day delivery to over 2,300 U.S. towns with the help of predictive AI algorithms.
• Instacart and Boxed use AI to personalize product recommendations, improve search results, and optimize delivery routes.

These innovations show how AI can enhance efficiency, personalization, and profitability in the grocery and CPG sectors. Major players like Amazon, Walmart, and Instacart are also expanding in grocery delivery, underscoring the industry’s rapid digital shift, to learn more click here.

The AI Tipping Point

Grocery and CPG categories have traditionally lagged behind other sectors in online penetration, but a tipping point is approaching. In other industries—such as toys, sporting goods, and small appliances—AI adoption surged after hitting certain digital milestones. As more consumers embrace online grocery shopping, the need for AI-powered insights will shift from optional to essential.

The Current AI Intelligence Gap

Despite progress, there’s still a disconnect between the potential of AI and how it’s applied in grocery and CPG analytics.

• Offline data often provides better details on category size, growth, and brand share, while online analytics remain fragmented.
• Consumer behavior data is abundant online, but many brands lack AI tools—or the strategy—to fully leverage it.

The gap is less about AI availability and more about integration, interpretation, and trust in automated insights.

Key AI-Driven Data Sources

1. Retailer AI Analytics
   Retailers are enhancing their analytics platforms with AI. Walmart’s Retail Link upgrades, Amazon’s Retail Analytics, and Peapod’s premium dashboards now include predictive capabilities. Third-party partners help manufacturers interpret this data using advanced modeling and forecasting.
2. Syndicated AI-Enhanced Data
   Organizations like Circana and Nielsen are embedding AI into household panels, making it easier to detect emerging trends and improve demand forecasts—even without full market transaction data.
3. AI-Powered Digital Shelf Intelligence
   Specialized providers monitor the digital shelf—tracking product visibility, pricing, promotions, ratings, and search rankings. AI enables daily, global, and competitive analysis, and can be integrated with retailer and syndicated datasets for a complete market view.

The Road Ahead

Bridging the AI gap in grocery and CPG will require:

• Deep integration of AI into daily decision-making
• Unified data ecosystems that combine retail, syndicated, and digital shelf insights
• Predictive capabilities to anticipate market changes
• Personalization at scale to improve consumer engagement

Kaytics, based in Chicago, helps grocery and CPG brands unlock AI’s full potential—from predictive analytics to AI-powered chatbots—enabling faster, smarter, and more confident business decisions.