Artificial Intelligence (AI) in India: Driving Operational Efficiency
AI is transforming industries across India, fueled by widespread internet access, mobile technology, digital infrastructure, and private sector investments. Supported by initiatives like the National AI Mission, India is emerging as a key player in adopting AI responsibly and at scale.
AI’s Role in the FMCG Sector
In the fast-moving consumer goods (FMCG) sector, AI is enhancing demand forecasting, supply chain management, personalised marketing, and consumer insights. This leads to smoother operations and better customer engagement. At companies like Hindustan Unilever Limited (HUL), data and machine learning are integrated across the value chain to connect customers, consumers, and operations through technology and analytics.
Optimising Consumer Touchpoints
Consumers interact through multiple channels, expecting fast and relevant experiences. HUL addresses this through the 6Ps framework:
- Product: The Agile Innovation Hub uses AI-driven digital simulations and real-time feedback to quickly develop and test new products.
- Price, Place, and Promotion: Platforms like Sangam and eNRM use AI-powered market mix modelling to optimise media campaigns, ensuring the right audience is reached effectively.
- People and Presentation: Tools such as Consumer 360 and Content Supply Chain create AI-generated content matched to consumer profiles, brand identity, and trends.
AI assistants like TY, TRESemmé’s virtual hair stylist, and LUMI, Lakmé’s AI beauty advisor, offer personalised product recommendations and content-to-commerce experiences, enhancing convenience and engagement.
Transforming the Customer and Retail Landscape
The retail ecosystem in India is evolving as technology changes consumer behaviour. The buying journey now spans multiple channels and moments, including hyper-local and quick commerce models.
HUL’s AI initiatives focus on demand capture, generation, and fulfilment. For example, Shikhar, India’s largest eB2B platform, has evolved from a digital ordering tool to a marketing engine. It introduced Generative AI in 2025, enabling retailers to create promotional videos from a single photo at no cost, driving dynamic local campaigns.
Envision, HUL’s AI-powered image recognition tool, analyses about 25 million images monthly to improve shelf availability, merchandising, and competitive insights. This supports faster, smarter decisions for field teams and retailers.
Canvas helps channel teams generate better content and optimise media spending, delivering cost savings and higher returns across e-commerce and quick commerce channels.
Building Smarter Operations with Agility
Alongside demand generation, operational agility is critical. HUL is overhauling its supply chain with a digital-first approach focused on resilience and growth.
Samadhan, a revamped warehouse and distribution system, enables next-day delivery for retailers using Shikhar in select cities. This expands product availability at local stores.
HUL’s shift to a digital manufacturing network includes “Nano Factories” for flexible, small-batch production that responds quickly to market changes while maintaining scale.
The “Nerve Center” integrates planning, sourcing, manufacturing, and delivery into a real-time AI-driven system. This unified approach helps the supply chain respond efficiently to disruptions and improves operational decision-making.
Empowering Teams with Tools and Learning
Technology is only as effective as the people using it. HUL invests in training, partnering with platforms like LinkedIn Learning and Udemy to build skills in AI, machine learning, and data science.
This culture of continuous learning ensures teams remain capable of operating and innovating with AI technologies. For operations professionals interested in upskilling, exploring AI courses by job role can be a practical starting point.
As AI continues to evolve, embedding it thoughtfully into operations is essential for efficiency, responsiveness, and growth.
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