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Friday, September 19, 2025

AI-Driven Transformation at P&G: Strategic Integration Across Operations and Innovation

September 19, 2025

As a global leader in the consumer goods industry, Procter & Gamble (P&G) deeply understands that technological innovation is central to delivering sustained consumer value. In recent years, P&G has strategically integrated Artificial Intelligence (AI) and Generative AI (Gen AI) into its operational and innovation ecosystems, forming a company-wide AI strategy. This strategy is consumer-centric, efficiency-driven, and aims to transform the organization, processes, and culture at scale.

Strategic Vision: Consumer Delight as the Sole Objective

P&G Chairman and CEO Jon Moeller emphasizes that AI should serve the singular goal of generating delight for consumers, customers, employees, society, and shareholders—not technology for its own sake. Only technologies that accelerate and enhance this objective are worth adopting. This orientation ensures that all AI projects are tightly aligned with business outcomes, avoiding fragmented or siloed deployments.

Infrastructure: Building a Scalable Enterprise AI Factory

CIO Vittorio Cretella describes P&G’s internal generative AI tool, ChatPG (built on OpenAI API), which supports over 35 enterprise-wide use cases. Through its “AI Factory,” deployment efficiency has increased tenfold. This platform enables standardized deployment and iteration of AI models across regions and functions , embedding AI capabilities as strategic infrastructure in daily operations.

Core Use Cases

1. Supply Chain Forecasting and Optimization

In collaboration with phData and KNIME, P&G integrates complex and fragmented supply chain data (spanning 5,000+ products and 22,000 components) into a unified platform. This enables real-time risk prediction, inventory optimization, and demand forecasting. A manual verification process once involving over a dozen experts has been eliminated, cutting response times from two hours to near-instantaneous.

2. Consumer Behavior Insights and Product Development

Smart products like the Oral-B iO electric toothbrush collect actual usage data, which AI models use to uncover behavioral discrepancies (e.g., real brushing time averaging 47 seconds versus the reported two minutes). These insights inform R&D and formulation innovation, significantly improving product design and user experience.

3. Marketing and Media Content Testing

Generative AI enables rapid creative ideation and execution. Large-scale A/B testing shortens concept validation cycles from months to days, reducing costs. AI also automates media placement and audience segmentation, enhancing both precision and efficiency.

4. Intelligent Manufacturing and Real-Time Quality Control

Sensors and computer vision systems deployed across P&G facilities enable automated quality inspection and real-time alerts. This supports “hands-free” night shift production with zero manual supervision, reducing defects and ensuring consistent product quality.

Collective Intelligence: AI as a Teammate

Between May and July 2024, P&G collaborated with Harvard Business School’s Digital Data Design Institute and Wharton School to conduct a Gen AI experiment involving over 700 employees. Key findings include:

Teams using Gen AI improved efficiency by ~12%;
Individual AI users matched or outperformed full teams without AI;
AI facilitated cross-functional integration and balanced solutions;
Participants reported enhanced collaboration and positive engagement .

These results reinforce Professor Karim Lakhani’s “Cybernetic Teammate” concept, where AI transitions from tool to teammate.

Organizational Transformation: Talent and Cultural Integration

P&G promotes AI adoption beyond tools—embedding it into organizational culture. This includes mandatory training, signed AI use policies, and executive-level hands-on involvement. CIO Seth Cohen articulates a “30% technology, 70% organization” transformation formula, underscoring the primacy of culture and talent in sustainable change.

Sustaining Competitive AI Advantage

P&G’s AI strategy is defined by its system-level design, intentionality, scalability, and long-term sustainability. Through:

Consumer-centric value orientation,
Standardized, scalable AI infrastructure,
End-to-end coverage from supply chain to marketing,
Collaborative innovation between AI and employees,
Organizational and cultural transformation,

P&G establishes a self-reinforcing loop of AI → Efficiency → Innovation. AI is no longer a technical pursuit—it is a foundational pillar of enduring corporate competitiveness.

Detailed Guide to Creating a Custom GPT Integrated with Google Drive

November 06, 2024

In today’s work environment, maintaining real-time updates of information is crucial. Manually updating files using ChatGPT can become tedious, especially when dealing with frequently changing data. This guide will take you step by step through the process of creating a custom GPT assistant that can directly access, retrieve, and analyze your documents in Google Drive, thereby enhancing work efficiency.

This guide will cover:

Setting up your custom GPT
Configuring Google Cloud
Implementing the Google Drive API
Finalizing the setup
Using your custom GPT

You will need:

A ChatGPT Plus subscription or higher (to create custom GPTs)
A Google Cloud Platform account with the Google Drive API enabled

Step 1: Setting Up Your Custom GPT

Access ChatGPT: Log in to your ChatGPT account and ensure you have a Plus subscription or higher.
Create a New Custom GPT:
- On the main interface, find and click on the "Custom GPT" option.
- Select "Create a new Custom GPT".
Name and Describe:
- Choose a recognizable name for your GPT, such as "Google Drive Assistant".
- Briefly describe its functionality, like "An intelligent assistant capable of accessing and analyzing Google Drive files".
Set Basic Features:
- Select appropriate functionality modules, such as natural language processing, so users can query files in natural language.
- Enable API access features for subsequent integration with Google Drive.

Step 2: Configuring Google Cloud

Access Google Cloud Console:
- Log in to Google Cloud Platform and create a new project.
Enable the Google Drive API:
- On the API & Services page, click "Enable APIs and Services".
- Search for "Google Drive API" and enable it.
Create Credentials:
- Go to the "Credentials" page, click "Create Credentials," and select "OAuth Client ID".
- Configure the consent screen and fill in the necessary information.
- Choose the application type as "Web application" and add appropriate redirect URIs.

Step 3: Implementing the Google Drive API

Install Required Libraries:
- In your project environment, ensure you have the Google API client library installed. Use the following command:
```
bash
pip install --upgrade google-api-python-client google-auth-httplib2 google-auth-oauthlib
```

Write API Interaction Code:

Create a Python script, import the required libraries, and set up the Google Drive API credentials:

python
from google.oauth2 import service_account
from googleapiclient.discovery import build

SCOPES = ['https://www.googleapis.com/auth/drive.readonly']
SERVICE_ACCOUNT_FILE = 'path/to/your/credentials.json'

credentials = service_account.Credentials.from_service_account_file(
    SERVICE_ACCOUNT_FILE, scopes=SCOPES)

service = build('drive', 'v3', credentials=credentials)

Implement File Retrieval and Analysis Functionality:

Write a function to retrieve and analyze document contents in Google Drive:

python
def list_files():
    results = service.files().list(pageSize=10, fields="nextPageToken, files(id, name)").execute()
    items = results.get('files', [])
    return items

Step 4: Finalizing the Setup

Test API Connection:
- Ensure that the API connects properly and retrieves files. Run your script and check the output.
Optimize Query Functionality:
- Adjust the parameters for file retrieval as needed, such as filtering conditions and return fields.

Step 5: Using Your Custom GPT

Launch Your Custom GPT:
- Start your custom GPT in the ChatGPT interface.
Perform Natural Language Queries:
- Ask your GPT for information about files in Google Drive, such as "Please list the recent project reports".
Analyze Results:
- Your GPT will access your Google Drive and return detailed information about the relevant files.

By following these steps, you will successfully create a custom GPT assistant integrated with Google Drive, making the retrieval and analysis of information more efficient and convenient.

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