Aussie consumer brands are betting big on AI as margins tighten

Australia’s consumer goods leaders are bracing for a tough year ahead, with many saying profitable growth is getting harder to come by. Yet instead of battening down the hatches, the latest research from Salesforce shows they’re doubling down on artificial intelligence to help them weather the storm.

Growth is getting harder

According to the Salesforce Consumer Goods Industry Insights Report, more than half of local decision-makers (53 per cent) say profitable growth will be tougher to achieve this year, while 62 per cent expect more instability across the board. Nearly all (99 per cent) point to shifting economic policies, including tariffs, as a direct hit on sourcing, operations, and margins.

With trade promotions also losing their punch (only 41 per cent deliver a positive return on investment), old-school revenue boosters are also looking a bit stale.

Michelle Grant, Director RCG Insights at Salesforce, says the old ways are no longer cutting it.

“In 2025, price hikes, blanket promotions, and standard assortments can’t guarantee growth. Winning now means precision: using data, strategic trade promotions, and agentic AI to turn every step from the factory to the shopper into a revenue-generating opportunity.”

AI agents move from hype to must-have

That’s where AI comes in. Business leaders see it as the difference between staying competitive or falling behind. The report found 85 per cent of Australian consumer goods leaders believe AI agents will be essential within two years, while 83 per cent believe these agents will directly boost sales.

Agentic AI, the latest breed of artificial intelligence that can act autonomously alongside human teams, is being pegged as a productivity and innovation engine. From whipping up trade promotion strategies to helping design new products, AI is being asked to do the heavy lifting.

Jane Brown, SVP Enterprise at Salesforce ANZ, says Aussie brands know they need to move fast.

“The message from Australian consumer goods business leaders is clear; maintaining customer loyalty is increasingly challenging, and businesses need to move quickly to implement AI agents to remain competitive.”

Personalisation is the new battleground

If there’s one buzzword keeping CMOs up at night, it’s personalisation. As customer loyalty wanes – 74 per cent of consumers switched brands in the past year – leaders are shifting away from blanket discounts and loyalty schemes to more tailored offers.

The data shows AI and data-driven personalised offers are delivering the strongest results, outperforming loyalty programs by nearly 15 percentage points in Australia. That’s a serious edge in a market where 59 per cent of leaders admit it’s harder than ever to keep shoppers from jumping ship.

Nathan Alexander, Chief Information Officer at McPherson’s, says the report’s findings line up with their strategy:

“It’s clear that Australian consumer goods businesses need to do more to deliver effective customer engagement. This report reinforces our strategy of leveraging social engagement to build in-market brand awareness and enable more personalised brand messaging.”

Social spend ramps up as shopping journeys splinter

With customers bouncing between bricks-and-mortar shops, TikTok scrolls, Instagram ads, and direct-to-consumer websites, brands are having to show up everywhere at once. The Salesforce survey found that 63 per cent of Australian business leaders are increasing their social media spend, while just over half (51 per cent) are funnelling more money into digital ads.

It’s a shift that makes sense. If shoppers are hanging out online, the brands need to be right there with them, sliding into feeds with content that feels more personal than promotional.

Playing the long game with AI

For an industry built on wafer-thin margins, the bet on AI is a big one. Businesses are hoping AI will trim costs and help them innovate faster, engage customers more meaningfully, and claw back growth in a wobbly economy.

It’s a strategy that’s not without its risks. Investment is steep, consumer trust in AI is patchy, and regulation could change the rules of the game. However, right now, most business leaders seem to agree that sitting on the sidelines is not an option.

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