Agentic AI in Retail and CPG

Imagine managing a busy store or overseeing a CPG production line; the responsibilities never end. From keeping shelves stocked to adjusting prices and launching promotions, leaders manage numerous moving parts, often under intense pressure to meet shifting consumer demand. In these high-stakes environments, even minor delays can disrupt operations and customer satisfaction. Now imagine having an intelligent assistant that generates reports, actively identifies issues, takes corrective action, and allows you to focus on strategy. That’s the promise of Agentic AI, and based on what I’ve seen, it could reshape how Retail and CPG organizations operate.

So, What’s Agentic AI All About?

Agentic AI is not a system that waits for step-by-step instructions. It takes initiative to work toward the goals you define while managing the process independently. Think of it as a dependable colleague — one that can analyze vast datasets, determine the best course of action, and execute decisions, all while continuously learning and improving. Unlike traditional AI tools that summarize information or generative models like ChatGPT that require prompts, Agentic AI is proactive. It is designed to manage complex, multi-step tasks with minimal human intervention, making it especially relevant for industries such as Retail and CPG, where real-time decisions are critical.

An example that clarifies this well is: if a retailer instructs the AI to ‘make sure the shelves have what people want,’ the system won’t just alert them to low stock, but it will also trigger replenishment actions. It will analyze sales history, predict upcoming demand, connect with suppliers, and place orders, keeping you informed by selecting and prioritizing the right updates rather than providing unnecessary information, such as notifications from our phone apps. It’s like having a professional expert or bodyguard watching over your supply chain.

Why Does Retail and CPG Need Agentic AI Now?

Our industries move quickly and are packed with information, where making quick, timely decisions is crucial. Customers want personalized experiences, consistent availability, and error-free logistics. However, with many new products failing, sudden supply issues, and tight margins, things can become overwhelming. That’s where Agentic AI can simplify the chaos:

• Streamlines operations by automating routine tasks such as stock checks and price adjustments.
• Enables smarter decisions by analyzing vast datasets — from sales trends to customer behavior — and acting in real-time.
• Enhances customer experiences through personalization, proactive returns management, and demand prediction.
• Reduces costs and drives profitability with intelligent inventory management, simplified processes, and minimized losses.

Research indicates that over half of retail tasks can now be automated. Agentic AI goes further—linking those decisions together. Early adopters are already seeing 6–10% revenue growth and up to 40% higher sales productivity. That’s a significant advantage, not just hype.

How Agentic AI Differs from Existing Tools

Let us analyze this concept in detail, as it is often confused with existing solutions, such as standard automations. Artificial Intelligence has been integrated into our ecosystem for an extended period. Business Intelligence (BI) tools provide dashboards and predictive analytics for forecasts, while ChatGPT facilitates content creation. However, unlike Agentic AI, they cannot act autonomously. This marks an even sharper distinction from traditional automation.

Consider traditional BI: It resembles an experienced analyst who examines numerical data, reveals historical events, and identifies patterns—yet this is the extent of its capability. Ultimately, the decision-making responsibility rests with the user. Conversely, Agentic AI does not merely notify you of a shortage; it promptly orders additional resources or adjusts promotional strategies. Predictive AI excels at estimating events, such as sales surges, much like weather forecasts that warn of impending rain. However, the critical question remains: what are the subsequent steps? Agentic AI anticipates these scenarios, prepares alternative actions, and adapts accordingly.

GenAI technologies, such as ChatGPT, are well-suited for creative tasks, including crafting descriptions and designing visuals, provided they receive appropriate inputs or prompts. In contrast, Agentic AI is autonomous, pursuing objectives and managing entire processes independently, exemplified by overseeing a whole marketing campaign from inception to completion.

Unlike Robotic Process Automation (RPA), which follows predefined rules to handle repetitive tasks like form filling or file updating, Agentic AI is designed to adapt and act independently. Where RPA systems often break when faced with unexpected changes, Agentic AI uses intelligent logic to accommodate real-world variations. While RPA may perform routine inventory data entry, agentic AI can forecast demand, adjust quantities accordingly, and place orders with suppliers during disruptions without additional instructions. The fundamental distinction lies in its autonomous operation; it is capable of pivoting and concentrating on the required action.

It employs resources such as Large Language Models (LLMs), Machine Learning (ML), and Natural Language Processing (NLP) to reason, strategize, and execute plans. It functions more like a genuine team member than a mere tool, managing complex processes that conventional automation cannot handle.

Everyday Scenarios in Retail and CPG

Agentic AI can create a real impact across multiple functions in Retail and CPG. For example, during a new product launch, it can predict early adoption issues and adjust campaigns or shelf placements to reduce product failure risk. For stock management, it can anticipate demand changes due to weather or local events and automatically adjust replenishment schedules. In personalization, it can combine customer history and preferences to provide customized recommendations. It can also optimize marketing campaigns in real-time by monitoring performance and adjusting investments. In-store, it can detect shelf gaps, organize layouts, and ensure replenishments happen seamlessly. In the supply chain, it can reroute shipments during disruptions and negotiate deadlines to minimize delays.

Challenges to Address

Of course, adopting Agentic AI isn’t without its challenges. Data quality is often an issue; if the data feeding the system is inaccurate or incomplete, the output will be flawed. Integration with existing systems is another barrier, as connecting to ERP, CRM, and supplier networks can be a complex process. Transparency is also critical: businesses want to know how decisions are being made, and many AI systems still act like a ‘black box.’ Finally, there’s the human side—change management is essential, as employees need to trust and understand the new systems.

Where Agentic AI is Showing Up in COTS (Commercial Off-The-Shelf) Products

There are several off-the-shelf options ready to enhance operations in Retail and CPG. Here are a few:

• SymphonyAI’s CINDE platform integrates with data from sales, promotions, and inventory. AI agents then provide broad suggestions. It is excellent for merchandising, automating launch reviews, and shelf arrangements.
• Microsoft’s Copilot Studio is user-friendly for creating customized agents for inventory and support. Ex. Dow uses it to scan invoices, capturing errors automatically and, in turn, saving significant money.
• Salesforce Agentforce is specifically designed to manage detailed processes, automating sales, customer service, and promotions. It integrates with Data Cloud for immediate access to various data, keeping the teams well-informed about deals.

These products are easy to integrate, can grow with you, and eliminate the need to start from the basics.

Industry Adoption and Use Cases

Leading enterprises across industries are already realizing the impact of Agentic AI. Below are a few cases that caught my attention:

• In CPG, Dow utilizes Copilot Studio to review invoices; the AI processes over 100,000 annually to identify errors, thereby saving millions swiftly. Their Freight Agent enables staff to inquire naturally, expediting decision-making.
• Grupo Bimbo transitioned to Azure and implemented agents to streamline operations, creating 650 jobs for fundamental tasks such as data collection, which resulted in a reduction of millions in annual costs.
• In retail, T-Mobile utilizes Agentforce to capture promotion details for store staff, providing them with quick access and enhancing both sales and customer interactions.
• LVMH is developing agents for premium services, including assistants that handle complex inquiries and recommend ideal items, which could lead to increased customer engagement.

These examples demonstrate how organizations are leveraging Agentic AI to achieve cost savings, enhance customer relationships, and drive operational efficiency and outcomes that resonate strongly with Retail and CPG leaders.

Getting Started

Adopting Agentic AI is about building confidence through small, measurable steps. Leaders often ask, ‘Where do we begin?’ The answer lies in starting with focused pilots, creating a strong foundation, and then scaling responsibly. Here’s a practical roadmap to guide that journey:

Pilot Small: Concentrate on a single area, like inventory fixes in a specific location, to test with low risk.

Build a Database: Clean and centralize it with a tool of your preference (CINDE or Data Cloud).

Pick a Tool: Choose Copilot Studio or Aisera if they fit your setup, as they can definitely simplify integrations.

Foster Trust: Select AI-based solutions or scenarios that offer measurable real benefits and also ensure to include privacy options.

Train Up: Offer training and Workshops, as they are a great way to ensure the teams understand and work with AI, showing it as a tool that will enhance their capabilities and also support them.

Set Rules: Monitor outcomes, adapt with feedback, and ensure human oversight where it matters most.

Team Up: Partner with Tech Mahindra for a tailored solution and guidance.

How Tech Mahindra Steps In for Retailers and CPG

Tech Mahindra is at the forefront of delivering services and consulting that help clients transform operations and accelerate growth. In partnership with Mimik, Tech Mahindra has established the first Agentic AI Production Center in San Francisco and Bangalore. The center focuses on designing and deploying tailored agents for retail and CPG, supported by ready-made templates that speed up processes for:

Custom Agents: We create agents tailored to specific needs, such as optimizing the supply chain or automating services, which integrate seamlessly with the technology of choice.

Data Management: We consolidate scattered data sources into a centralized hub, enabling informed AI decisions. We have expertise and deep partnerships with AWS and Azure, and offer scalability @ speed.

Training and Transition: We provide programs to upgrade employee skills and facilitate transitions, which builds the required confidence in AI as a technology through a white-glove treatment involving change management.

Security and Guidelines: We implement layered protections to prevent breaches or malfunctions, continuously monitoring to ensure business operations run smoothly.

Tailored Solutions: With deep expertise in product failures and supply chain challenges, we custom-develop agents for launch optimization, inventory management during crises, and other critical applications.

Toward a Hyperautomated Future

Agentic AI is a valuable partner in Retail and CPG—intelligent, innovative, and designed to tackle your biggest challenges. It’s more than just automation; it’s a core transformation of operations, product launches, and experiences that customers value. What sets it apart from older AI or automation tools is its self-directed nature and the ability to adapt to changing environments. While there are still obstacles, such as data issues or trust concerns, sensible strategies and support from partners like TechM can help navigate the journey and make it a little smoother. At the start, it's essential to pick something small but crucial;  conduct testing in that one area, and ensure you strengthen the data infrastructure that supports it. Agentic AI is not a distant promise. It is here today, ready to power shelves, campaigns, and supply chains to thrive. With Tech Mahindra as a partner, leaders can turn that promise into measurable success.