By: Fadime Yilmaz, Experience Strategist – UX Researcher, LTIMindtree Consulting

In today’s dynamic landscape of product formulation, the conventional approach of mixing chemicals has evolved into a strategic race to meet consumer demands and navigate fierce market competition. With the constant evolution of trends and technology, and consumerism at an all-time high, staying ahead is the ultimate challenge, and the field of product formulation is no exception.

To succeed in product formulation, a minimum of 3,000 raw ideas are needed to have one or two successfully launched products*, which begs the question “How do you maintain a large volume of ideas that are in tune with current trends and consumer demands, setting the perfect stage for Gen AI?” Gen AI technology is a type of artificial intelligence that is designed to generate new content, such as images, text, or other forms of data.

Gen AI-driven formulation technology, with its integrated data, predictive features, smart recommendations, and sustainability principles has the transformative potential to revolutionize the product development process. By harnessing the power of Gen AI technology, formulators can enhance collaboration, predict market trends, make well-informed decisions, and create environmentally friendly products that align with consumer demands.  Let’s explore the key capabilities that can give product formulators a winning hand.

1. Data management transformation with Gen AI software

An integral aspect of product formulation is the ability to have a single source of truth for ingredients, experiments, and products. It must also allow for the standardization of all specifications from raw materials, formulas, ingredients, packaging, and finished products into data templates. A Gen AI co-pilot designed for data scientists can facilitate smooth data integration, develop an easily manageable master dataset, and expedite data distribution. This helps formulators enhance the process of product development, making it more scalable and efficient through the use of advanced analytics, predictive modeling, and automation in decision-making.

How can Gen AI software help with data management in product formulation?

• Streamlined processes: Through Gen AI-powered tools and techniques, data scientists can enhance various aspects of data handling, including data integration, data cleansing, quality assurance, data governance, and data analytics. All these enhancements will help formulators with faster ingredient ideation, product experimentation, approvals, and getting to the final product faster.

• Faster decision-making: Gen AI software helps data scientists uncover patterns, trends, and insights by generating predictive models, reports, and visualizations from large datasets and this enables better strategic planning and resource allocation. As all teams can reach all the accurate information about one product faster and easier in one place, it helps them derive actionable insights and make better decisions faster. Having real-time access to current market trends, consumer feedback, and competitor analysis enables formulators to quickly adjust their product formulations and respond to changing market demands.

• Faster speed-to-market: Another benefit is that Gen AI technology empowers all team members to leverage the vast amount of data available in their system to increase the speed to market. Data integration empowered by Gen AI software accelerates research and development timelines, decision-making, iterations, sourcing, parallel workflows, and data collection, allowing companies to bring products to market faster than traditional methods would permit.

2.   Predictive features, data-driven insights, and smart recommendations with Gen AI software

Gen AI serves as a powerful ally in the formulation process, acting as a secret weapon to stay ahead, satisfy consumer demands, and drive product innovation faster in today’s competitive market. By utilizing machine learning algorithms, Gen AI enhances formulation software by providing data-driven insights, predictive features, and smart recommendations. This synergy between technology and formulation ensures a faster and more informed approach to meeting market expectations.

Even before starting the formulation process, Gen AI software helps formulators by utilizing real-time data. It grants them a deep understanding of the flavors, aromas, and textures their target consumers prefer in different markets. Additionally, Gen AI identifies competitive white space for new product development through analysis of customer feedback, reviews, and social media data. This proactive approach enhances the formulation journey, ensuring products align with customer preferences.

In the formulation process, Gen AI guides formulators by recommending raw materials aligned with consumer expectations and the latest trends. It adapts to constantly changing costs and availability, proposing potential alternative raw materials and similar formulas with similar raw materials for consideration. This hands-on approach empowers formulators to make cost-efficient formula decisions early in the process. Gen AI also enriches the process by providing a dynamic news feed based on search patterns, ensuring a comprehensive and up-to-date perspective.

When it comes to testing, Gen AI helps formulators predict the success rate and performance of new formulas by analyzing raw material selection, historical data, and market trends and by highlighting the risks of certain formulas or raw materials through more consistent data. This foresight offers a strategic advantage to formulators in anticipating potential outcomes before actual testing begins. Gen AI streamlines the testing process by ensuring formulation starts with well-informed data-driven choices. Beyond predictions, Gen AI is proactive during testing by suggesting real-time adjustments and alternative raw materials to the formulas in response to unexpected challenges or opportunities for improvement.

3.   Sustainability

Formula creation tools significantly impact the manufacturing industry, influencing the design and production of various products. According to a 2022 Capgemini Research Institute paper titled “Rethink: Why sustainable product design is the need of the hour”, about 80% of the environmental impacts linked to products stem from choices made during the product design/formulation phase. To achieve a truly systematic change, sustainability must be vital to product formulation decisions. Moreover, the research shows that more than two-thirds (67%) of organizations have seen a reduction in carbon emissions due to the implementation of sustainable product design strategies.*

By leveraging Gen AI software to prioritize sustainability, formulators can significantly contribute to reducing the environmental footprint of product development and manufacturing. Gen AI’s ability to analyze and optimize factors like raw material sourcing, production processes, and waste management leads to the creation of products that are resource-efficient and eco-friendly. Moreover, Gen AI can simulate and predict outcomes, reducing the need for physical testing. This helps not only accelerate the development process but also minimize resource usage. It will also contribute to the reduction of material waste, energy consumption, and chemical usage. By integrating sustainability into formulation software, formulators can ensure that the products they create have a minimal ecological impact, preserving resources for future generations.

While it is true that Gen AI poses its own sustainability challenges because of its significant server and energy requirements, it is possible to integrate Gen AI into an organization’s processes in a manner that aligns with their overarching sustainability goals. This approach ensures that their Gen AI deployment not only makes sense from an environmental standpoint but also contributes to a reduction in their overall resource cost.

In conclusion, enhancing your formulation software with Gen AI is not a passing trend but a business requirement. Incorporating Gen AI-driven technology into formulation software allows formulators to leverage integrated data, predictive features, smart recommendations, and sustainability principles to transform the product development process. If you want to jump ahead of your competition, satisfy consumer demands, and drive product innovation faster, you must start your digital transformation journey now and enhance your formulation software with Gen AI. However, it is important to remember that although generative AI software can open new doors for saving time and creating a symbiosis with experts, the implementation must be aware of the existing culture and processes in your organization. Every solution must be tailored to the specific needs of the users and aligned with organizational goals.

References

1. Myths About New Product Failure Rates, George Castellion, Stephen K. Markham, 2013, https://engineeringunleashed.com/media/download?secureId=uDf9Ccmac1s%3D
2. Rethink: Why sustainable product design is the need of the hour, Capgemini Research Institute, 2022, https://www.capgemini.com/insights/research-library/sustainable-product-design/