What AI actually changes in retail and FMCG
The honest answer is narrower than the market claims and more durable than the sceptics allow. In retail and FMCG, AI moves the needle where a decision is repeated thousands of times a week, where the input is already digital, and where a small, consistent improvement compounds. Hierarchical demand forecasting is the clearest example: individually each judgement is unremarkable, but at volume the difference between a good model and a mediocre one shows up directly in forecast accuracy (WAPE) and on-shelf availability.
What AI does not change is accountability. A model can rank, score, flag and draft; a person still owns the outcome. The engagements that survive are the ones that design the human-in-the-loop contract first — who reviews what, at what threshold, with what escalation — and then fit the model to that contract. Doing it the other way round produces an impressive pilot and an abandoned system.

