How Procter & Gamble Uses AI to Extract New Insights from Data
Procter & Gamble (P&G) has a rich history of analytical research dating back to 1924. Today, the company leverages artificial intelligence (AI) to tackle significant business challenges and optimize processes. This article explores how P&G has transformed its data-driven approach with innovative AI technologies.
Summary
- P&G has a long tradition of data-driven decision-making.
- The development of an ‘AI factory’ accelerates the model implementation process.
- P&G continues to invest in human-AI capabilities through training and collaborations.
The Long History of Data Analysis at P&G
P&G can look back on a rich tradition of analytical research that spans over a century. As early as its founding years, they wondered how customers used their products, such as Ivory soap. These insights helped them effectively position their products in the market. The importance of customer and market insights remains significant to this day.
P&G’s AI Factory
In 2021, P&G leaders noted that AI was playing an increasingly important role in their operations. To shorten the development time of AI models, they established an ‘AI factory’. This platform enables teams to quickly develop, test, and implement algorithms, reducing the time for model implementation by approximately six months.
Examples of AI Applications
The ‘AI factory’ has led to several valuable applications, such as the Pampers My Perfect Fit app. This app uses an AI-driven questionnaire to help parents choose the right diapers, achieving an accuracy of 90%. Additionally, a system was developed in Brazil that splits customer orders and plans freight sizes, resulting in a 15% decrease in the number of ‘out-of-stock’ situations.
Generative and Agentic AI Products
P&G has also actively embraced generative AI. Their internal product offerings include applications like chatPG, imagePG, and askPG. These tools are designed to enhance employee productivity and provide valuable insights to customer service representatives, significantly reducing the processing time for inquiries.
Research and Development Using AI
The collaboration between P&G’s data science and R&D teams has led to faster innovations. Thanks to AI algorithms, they can develop new fragrance formulas much more quickly. The Perfume Development Digital Suite, for example, enables the creation of new scents five times faster than before.
Investing in Human-AI Capabilities
P&G is making significant investments in building human capabilities in data, analytics, and AI. The company collaborates with institutions like Harvard Business School to train over 4,000 executives in AI. Through the Friends of Data Science certification program, employees are trained in analytical AI.
Critical Insights for Recruitment and Executive Search
The use of AI for process improvement and data-driven decision-making has important implications for how companies recruit talent. The use of advanced technologies like AI requires professionals with the right skills in both technical and analytical disciplines, which influences the search for suitable candidates within executive search and interim management.
Source: Thomas H. Davenport and Randy Bean, December 17, 2025, https://sloanreview.mit.edu/article/how-procter-gamble-uses-ai-to-unlock-new-insights-from-data/
