Unilever and the AI Revolution: A Glimpse into the Future of Business
Discover how Unilever is transforming the future of business with AI. From streamlining operations to engaging consumers, this global CPG giant leverages generative AI across renowned brands, innovating in customer interaction, product development, and sustainability. Unilever's journey with AI showcases a blend of technology and human creativity, leading the way in the ethical use of AI in the modern market.
In a world where artificial intelligence (AI) is increasingly becoming a cornerstone of business operations, Unilever, a global consumer packaged goods (CPG) titan, is leading the way in harnessing the power of generative AI. With a portfolio that includes renowned brands like Dove, Hellmann’s, and Ben & Jerry’s, Unilever is leveraging AI to navigate the challenges of the modern market, from supply chain disruptions to evolving consumer preferences.
AI: A Tool for Today, Not Just Tomorrow
Alessandro Ventura, CIO and Vice President of Analytics and Business Services for North America at Unilever is at the helm of the company’s AI initiatives (link). Under his leadership, Unilever has developed a suite of AI tools designed to streamline operations and enhance customer engagement. Ventura emphasizes that AI is not a futuristic concept for Unilever; it is a technology that is already being widely used and is considered essential for the company’s ongoing success.
Meet Alex: The AI That Understands Consumers
One of Unilever’s standout AI applications is “Alex,” named after Alexander the Great. Powered by GPT API, Alex is designed to filter emails in Unilever’s Consumer Engagement Center, distinguishing spam from genuine consumer messages. For legitimate messages, Alex recommends responses to human agents, who can then personalize these as needed. Ventura notes that while Alex excels in its tasks, human agents are encouraged to add their personal touch to responses. Alex has reportedly helped Unilever reduce the time agents spend drafting responses by over 90%.
Homer: Crafting Perfect Product Listings
Unilever’s AI tool named "Homer" is another example of generative AI in action. It uses GPT API to generate Amazon product listings based on a few details about a product. The tool is designed to capture the unique voice of each brand, ensuring that a TRESemmé shampoo, for example, is distinct from a Dove shampoo in its description.
AI for Sustainability: Reducing Food Waste
Unilever is also using AI to support its sustainability initiatives. One such tool was launched under Hellmann’s mayonnaise brand with the aim of reducing food waste. It connects with Hellmann’s recipe management system, allowing users to input ingredients they have on hand and receive recipe suggestions in return. In its first week, this tool reportedly attracted 80,000 users.
Co-Creation: The Key to Success
Ventura believes in the importance of co-creation and co-ownership of analytics and AI capabilities with business functions. He emphasizes that introducing AI as a partner, rather than a dictatorial black box, fosters trust and collaboration between human employees and their AI counterparts. This approach, Ventura suggests, results in less biased systems and more effective integration of AI into the business.
Navigating the Complex Landscape of AI and Data
Despite the promising applications of generative AI, Unilever remains cautious, especially when it comes to using AI in research and development (R&D). Alberto Prado, Global Head of Digital & Partnerships at Unilever R&D, highlights the company’s commitment to using proprietary data securely and ethically (link). Unilever is currently training its R&D AI model on proprietary data that remains within the company, avoiding the risks associated with open data AI systems.
Intellectual Property: A Critical Concern
For Unilever, which owns a multitude of distinct brands, intellectual property (IP) is a significant differentiator and a critical concern when using generative AI. The company is keenly aware of the current lack of clarity regarding who owns the output of generated content, a concern that extends from marketing campaigns to product development.
Conclusion
Unilever’s strategic embrace of generative AI showcases a forward-thinking approach to technology, where AI is seen as a partner working alongside human employees. Whether it’s crafting perfect product listings, engaging with consumers, or supporting sustainability initiatives, Unilever is setting a precedent for how large multinational corporations can effectively and responsibly integrate AI into their operations. As regulations around AI use continue to develop, Unilever’s cautious yet innovative approach positions it as a leader in the ethical and effective use of AI in the CPG industry.
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