The State of AI FMCG UK 2025

Every year, we speak to FMCG leaders about the pressures and opportunities shaping grocery. This year, we went further. In September 2025, CheckoutSmart surveyed 33 Marketing and eCommerce managers across leading UK FMCG manufacturers including Weetabix, Pernod Ricard, Nestlé, Carlsberg, Kimberly Clark, Lactalis, Hovis and General Mills to understand exactly how AI is being used, where progress is being made, and where the challenges remain. 

Here is what we found and what it means for FMCG brands preparing for the next stage of AI adoption.

  • Most FMCG brands are experimenting with AI, but only a small minority have progressed beyond pilots into fully operational programmes.

  • AI is delivering the strongest commercial impact in marketing, retail media optimisation and shopper insights, with data analysis seen as the greatest opportunity.

  • Internal capability remains a major barrier, with average AI confidence at just 4.1 out of 10 and many teams lacking the expertise to scale.

  • Data governance is holding back progress, as 62 percent of respondents cite data security as a key blocker to wider adoption.

Despite these challenges, there is strong momentum, with 84 percent wanting their organisation to move faster and 91 percent requesting structured AI training.

 

FMCG brands are experimenting, but few have reached operational maturity

 

Three-quarters of FMCG organisations are already piloting or planning AI initiatives, yet only 3 percent have achieved full operational deployment. The industry is clearly past the phase of questioning whether AI matters. The challenge now is organisation-wide capability and the practical steps needed to scale.

The most widely used tools are accessible generative platforms such as Microsoft CoPilot and ChatGPT. This tells us that teams are eager to adopt AI, but formalised programmes, governance and upskilling have not fully caught up.

Checkoutsmart state of ai Maturity logo Dec 2025

Marketing, media optimisation and insights are where AI delivers the greatest value

 

Across all respondents, the strongest commercial opportunities identified were:

  • Data analysis and insight creation

  • AI-powered retail media optimisation

  • Predictive analytics for shopper behaviour

Put simply, AI is most valuable where it directly improves ROI and where teams already have established workflows that can absorb automation and decision support.

This is consistent with what we see every day in reviews, digital shelf performance and online conversion: the biggest wins come when AI translates raw data into clear, actionable recommendations that save time and sharpen decision making.

Checkoutsmart state of ai Priorities logo Dec 2025

Capability and confidence are the biggest barriers

 

Internal AI confidence averaged just 4.1 out of 10. Sixty two percent cited data security concerns and fifty nine percent highlighted talent or expertise gaps as the primary blockers.

This is not surprising. Many FMCG teams are juggling multiple priorities, limited resourcing and fragmentation across systems and data owners. Without strong foundations in data management and clear frameworks for safe, compliant AI usage, pilot projects will struggle to scale.

Checkoutsmart state of ai Barriers logo Dec 2025

 

Fresh insights: most leaders want to move faster

Eighty four percent of respondents believe their organisation should be progressing more quickly with AI. The appetite is clearly there, but the route from testing to meaningful impact remains unclear.

At the same time, expectations about value are realistic. AI is not viewed as a silver bullet. Instead, leaders see it as a way to enhance understanding, improve targeting, and support better, faster decisions.

 

What brands should do next

Based on the findings, several clear recommendations emerge for FMCG organisations.

1. Create a focused AI roadmap

Rather than trying to deploy AI everywhere, brands should focus on a small number of high-impact use cases such as shopper insights, content automation, review analysis and retail media optimisation. Once a measurable value is proven, expansion becomes far easier.

2. Strengthen data governance

With data security cited as the number one barrier, building trusted, compliant data foundations is essential. A clear framework for data handling, classification and AI usage will unlock broader adoption.

3. Invest in capability building

Ninety one percent of respondents want structured AI training. Short, practical sessions, hands-on tools and guidance on prompt literacy will accelerate organisational maturity.

4. Encourage cross-functional collaboration

The best AI outputs come when marketing, category, insights and commercial teams work together. Joint pilots help break down silos and embed consistent ways of working across the organisation.

 

The shift: from exploration to execution

The overall message from this research is clear. The FMCG sector recognises the potential of AI but has yet to unlock its full commercial value. Experimentation is not the issue. Execution is. The next 12 months will determine which brands turn pilots into tangible, measurable improvements across shopper engagement, retail media, and data-led decision-making.

 

How CheckoutSmart supports AI-led growth

At CheckoutSmart, we have already built AI into solutions that address the exact challenges identified in this report.

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