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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.

Application Practice of LLMs in Manufacturing: A Case Study of Aptiv

September 05, 2024

In the manufacturing sector, artificial intelligence, especially large language models (LLMs), is emerging as a key force driving industry transformation. Sophia Velastegui, Chief Product Officer at Aptiv, has successfully advanced multiple global initiatives through her innovations in artificial intelligence, demonstrating the transformative role LLMs can play in manufacturing. This case study was extracted and summarized from a manuscript by Rashmi Rao, a Research Fellow at the Center for Advanced Manufacturing in the U.S. and Head of rcubed|ventures, shared on weforum.org.

LLM-Powered Natural Language Interfaces: Simplifying Complex System Interactions

Manufacturing deals with vast amounts of complex, unstructured data such as sensor readings, images, and telemetry data. Traditional interfaces often require operators to have specialized technical knowledge; however, LLMs simplify access to these complex systems through natural language interfaces.

In Aptiv's practice, Sophia Velastegui integrated LLMs into user interfaces, enabling operators to interact with complex systems using natural language, significantly enhancing work efficiency and productivity. She noted, "LLMs can improve workers' focus and reduce the time spent interpreting complex instructions, allowing more energy to be directed towards actual operations." This innovative approach not only lowers the learning curve for workers but also boosts overall operational efficiency.

LLM-Driven Product Design and Optimization: Fostering Innovation and Sustainability

LLMs have also played a crucial role in product design and optimization. Traditional product design processes are typically led by designers, often overlooking the practical experiences of operators. LLMs analyze operator insights and incorporate frontline experiences into the design process, offering practical design suggestions.

Aptiv leverages LLMs to combine market trends, scientific literature, and customer preferences to develop design solutions that meet sustainability standards. The team led by Sophia Velastegui has enhanced design innovation and fulfilled customer demands for eco-friendly and sustainable products through this approach.

Balancing Interests: Challenges and Strategies in LLM Application

While LLMs offer significant opportunities for the manufacturing industry, they also raise issues related to intellectual property and trade secrets. Sophia Velastegui emphasized that Aptiv has established clear guidelines and policies during the introduction of LLMs to ensure that their application aligns with existing laws and corporate governance requirements.

Moreover, Aptiv has built collaborative mechanisms with various stakeholders to maintain transparency and trust in knowledge sharing, innovation, and economic growth. This initiative not only protects the company's interests but also promotes sustainable development across the industry.

Conclusion

Sophia Velastegui’s successful practices at Aptiv reveal the immense potential of LLMs in manufacturing. Whether it’s simplifying complex system interactions or driving product design innovation, LLMs have shown their vital role in enhancing productivity and achieving sustainability. However, the manufacturing industry must also address related legal and governance issues to ensure the responsible use of technology.

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