One-third of CEOs in the CPG industry believe innovation is their brand’s number one lever for growth. Research supports this, showing that brands focused on innovation are significantly more likely to grow overall sales. Yet, while innovation is recognized as a growth driver, its execution often falters, with 75% of new products in the CPG category failing.
The answer lies in the process: the best products aren’t created in isolation. They’re built by continuously involving consumers—gathering feedback, iterating on ideas and ensuring every decision aligns with real-world needs. At Zappi, we’ve seen firsthand how AI empowers brands to bring consumers into every stage of the product creation process, driving agility and aligning ideas with what consumers truly want.
Today, artificial intelligence (AI) is enabling brands to stay closer to consumers than ever before and drive more agile processes, which can drive 4-6x better success rates. Here's how AI is transforming the way brands create products that win with consumers.
1. AI anticipates trends before they happen
Innovation thrives on understanding consumers, and the value of connected data is central to this process. When brands treat their data—purchase behavior, cultural trends and consumer attitudes—as a collective asset, they unlock a powerful resource for inspiring innovation and anticipating what’s next.
Take Zappi’s partner, McDonald’s, for example. By tapping into historical consumer data, the brand has uncovered emerging flavor trends for its iconic McFlurry and validated new ideas, enabling them to create products that resonate with evolving consumer preferences.
This is where AI can supercharge efforts. Large Language Models (LLMs) can analyze connected data to identify macro shifts, such as increasing consumer demand for indulgent yet affordable options during economic downturns, as well as micro-trends like younger audiences gravitating toward eco-friendly packaging. Applying AI can help marketers anticipate the next big trend before it happens.
And it’s not a one-off. AI’s predictive capabilities only improve with continuous data input, offering a feedback loop that helps brands surface trends faster and refine ideas in real time. By leveraging connected insights and AI, brands can stay ahead of the curve, delivering products that consistently win with consumers.
2. AI agents brainstorm so people can focus on strategy
Generative AI is supercharging the brainstorming meeting. The rising popularity of LLMs means that marketers have expert copywriters and designers on hand to generate dozens of packaging concepts in seconds, bringing creative ideas to life in seconds.
Zappi’s Innovation System provides AI Concept Creation agents, which integrate with historical data to produce new ideas that align with brand strategy and learn from previous innovations. Brands can input brand guidelines and themes to direct AI to truly understand the brand.
Specialized agents provide a starting point, enabling marketers to concentrate on refining the best ideas and ensuring ideas connect with brand strategy and goals. For example, an AI agent might generate packaging concepts for a new snack product that highlights bold designs appealing to Gen Z while incorporating sustainability messaging for eco-conscious shoppers.
3. AI streamlines iteration and localization
Traditionally, product testing and localization required weeks of manual analysis and consumer panels. But AI is enabling teams to minimize the distance between consumer testing and actions that improve product concepts. AI enables instant analysis of consumer feedback and accelerates iteration cycles.
Zappi’s Innovation System empowers brands to test concepts, messaging and packaging designs with consumers in real-time, providing actionable insights that power optimization. Zappi is applying AI to autonomously incorporate consumer feedback from product testing into the original concepts.
Through AI Concept Optimization, marketers can let AI optimize products according to consumer preferences. In A/B tests, AI-optimized concepts informed improvements in 65% of key performance indicators, with 20% of those metrics experiencing significant gains.
Localization is another area where AI delivers exceptional value. By segmenting insights based on demographics, regionality and cultural preferences, AI helps brands create products that resonate with specific audiences while maintaining global appeal.
The Future of Consumer-In-The-Loop Innovation
AI isn’t just a tool for efficiency; it’s a bridge that connects brands to consumers in ways that were previously unavailable. By anticipating trends, informing strategy and enabling real-time iteration, AI is reshaping the product creation process.
For modern marketers, the ability to tap into the transformative potential of AI starts with data. The marketers that succeed in the future won’t just be the fastest; they’ll be the ones carving out greater market share, driving growth for their businesses and creating products that win.
