Table of contents Executive summary5 Trend 3: Consumers bring online expectations into physical stores Trend 4: MACH flexibility helps enterprises navigate constant disruption19 Trend 6: The rise of AI agents that are smart, proactive, and autonomous27 Knowledge InstituteKnowledge Institute Foreword Karmesh Vaswani Executive vice president and head, consumergoods and tech, retail, and logisticsInfosys chairman — Infosys BPM, InfosysConsulting, EdgeVerve (Finacle) Welcome to our 2025 Consumer, Retail, andLogistics Journal. to become AI-ready. And all in a manner thatwidens the competitive moat of the business,while giving tangible improvements inbusiness metrics that matter. Over the past few years, we have witnessedan incredible and interdependent revolutionin the technology landscape acrosssemiconductors, data technology, andartificial intelligence (AI) technology. In this journal, we share our view of a fewmultimodal AI capabilities in different partsof the value chain in consumer, retail, andlogistics industries that have matured interms of adoption and value realization. This revolution is led by AI and machinelearning, which in the coming years holdsthe promise of significant leaps in humanproductivity compared to the revolutions ofthe past 100 years. These views reflect partnerships betweenInfosys and select technology leaders inservicing the AI-led renaissance with someof our strategic clients in the consumer, retailand logistics industries. We will keep bringingout at regular intervals new innovations thathave scaled in adoption and step-changeimprovements in value realizations. But AI is not merely an enhancement toexisting processes, systems, and people. Itis a catalyst for renaissance and renewal.It requires businesses to critically examineenterprise performance on the fivefundamental vectors of time, space, physicalcapital, human capital, and throughput. The path ahead is one of change, evolution,and positive transformation, and I amoptimistic that together we can make adifference, and shape a better future for thegenerations to come. They must also shift focus from talent mass totalent density, mastering enterprise datasets Executive summary We first look at revenue growth managementstrategies, with a focus on AI. With consumerspending patterns sensitive to externalfactors such as inflation, CPGs need to benimble in their pricing strategies, and it’s herethat RGM solutions, powered by AI, can help.These strategies can aid CPG companies inbuilding capabilities to assess brand pricing,improve revenue predictability, and drivesteady growth. The consumer packaged goods (CPG), retail,and logistics industries are evolving quickly,driven by technological advancementsand digital innovations to boost efficiencyand customer satisfaction. However, withconsumer demands and technologyconstantly shifting, the industries need tokeep on top of those factors and be ready toadapt quickly to remain competitive. This journal highlights six transformativetrends reshaping these industries. Eachchapter examines the current landscape,identifying challenges and complexitieswithin business and technology trends.Drawing on research, case studies, andreal-world applications, the journal offersrecommendations to equip leaders in CPG,retail, and logistics with a comprehensiveunderstanding of their industry, exploreways to address their pain points, and makedecisions informed by the latest thinking. Next, we look at the eternal problem ofshrinkage, and at how next-generationretailers are using AI for faster, more accuratedata-driven insights in managing shrinkacross the enterprise, warehouse, and storelevels. We explore how this end-to-end visibility intotheir processes in real time can help thempinpoint areas where shrinkage is causinglosses, and address their issues accordingly. of governance, technology, talent, data, andstrategy in place. In this chapter we look athow CPG companies must recognize that AIis becoming a general-purpose technologyto be embedded across the enterprisetechnology stack. Adopting an AI-firstmindset moves companies towardenterpriseAI readiness, whether it’s ensuring they havea valid use case, select those that will deliversubstantial business value, or build talentin AI. We also look at how the lines betweenphysical stores and digital stores are blurring,with retailers aiming to provide a seamlessand consistent shopping experiencewhether their customers are in a store, athome on a laptop, or out and about usinga mobile phone. We consider the rangeof technologies available to retailers, fromcutting-edge AI to augmented reality(AR), and how retailers can deploy thosetechnologies across all channels to attract,engage, and retain their customers. Finally, we turn to the coming wave of AI:Agentic AI, and the role this technology canplay in CPG companies. AI agents are fullyautonomous systems that pursue specificgoals with minimal human oversight. Withtheir ability to dynamical