An AI-arms race is, without question, afoot.
Nearly every leader of today’s CPG and technology & durables industries has been tasked with the successful development and implementation of AI-related tools – oh, and they’ve been told to make it happen faster than their competition as well. An AI arms race is, without question, afoot.
Despite the rapid advancement of AI-related technologies, and the speed at which teams are implementing them, unknowns abound. These unknowns range from operational (“Do we have the resources to get all of this done?”) to competitive (“Is ‘Brand B’ moving faster than we are?”). Suffice it to say, not a brand out there has yet to figure it all out.
One of the most fundamental questions brands must answer when developing their AI strategy is: “Which partner should we bring in to help us accelerate our efforts?”
We believe we’re that partner, and we possess this belief because AI expertise in isolation doesn’t deliver the “full package” organizations need to win in this space. “Intelligence” is in our name for a reason – but it’s not solely artificial, machine-driven intelligence. It’s also the human intelligence that stems from our rich, 100+ year history, 90-country footprint, and ~30,000 associates, all yielding unparalleled expertise and industry insights. Expertise and insights that, when coupled with our AI/ML capabilities, help position our clients to win for decades.
Of course, we understand that your team will conduct a thorough evaluation of which partner(s) to bring in to augment your AI/ML strategy (and to subsequently implement it). When conducting said evaluation:
1
Select the partner with the best data.
To the data victor goes the spoils, and quality AI output depends on having the highest-quality inputs. This includes both depth and breadth of data. The most successful brands will collaborate with their partner to ensure their data sources are connected.
2
Choose a partner that was in the AI game long before AI was trendy.
When choosing a partner, make sure they have deep-seated roots in large-scale data aggregation and analysis, boast a proven track record of ML/AI implementation, and aren’t simply “PR-ing” their AI and ML bona fides.
3
Verify that your partner has data stewardship and governance protocols in place that minimize future-state risks.
Remember: All data suppliers count on their own partners to provide clients with best-in-class data. Without the right governance and stewardship in place, a supplier is at risk of losing access to that data, which would have extensive negative consequences – for both their future and yours.
4
Find a partner that’s able to point to real, observed AI traction and successes.
Most succinctly: Your data supplier should be able to explain to you how what they’re building, relative to AI/ML, will benefit you and your organization.
Experience Matters. Period.
It takes a lot more than just calling yourself an AI-driven organization to be one. The sheer amount of data required to drive truly meaningful outcomes for both brands (and the partners they lean on) is enough to potentially overwhelm even the most seasoned team of data scientists. That massive data volume combined with poor data quality, noisy signals, and inaccuracies in analysis and modeling is a recipe for strategic misfires.
Unless, of course, you work with the right partner, one with a proven track record of leveraging AI for training models to analyze data at scale – a partner like NIQ.
The right partner should offer you the “full package.” They should allow you to license the high-quality data you need to train your models to deliver accurate, actionable insights. They should help you merge data sets strategically so that you can benefit from cross-sectioning and segmenting the data every which way. And they should generously share hard-won experience in analysis, modeling, and quality control to make sure you’re getting as much of the benefit as possible with the least amount of risk necessary. Phrased differently: They should be doing much of the heavy data lift, and you should be benefiting from the years of experience they gained by truly being an AI organization before … well … everyone else was an “AI organization.”
Here’s why NIQ is the premier partner to today’s top manufacturers and retailers:
Let’s Win Bigger (and More Often) as a Team
Our position here is simple: We exist to help our partners win and, in turn, we win. Therefore, in the most foundational sense, NIQ was built to collaborate and drive mutually beneficial outcomes.
Having been involved in countless AI-focused conversations with brands and retailers, we’ve seen firsthand which brands are accelerating and which ones aren’t. The common theme for those that are winning? Leveraging the assets and expertise of their partners (like NIQ) to multiply the great work their teams are doing internally and to ensure the highest degree of insight and accuracy possible.
The better the data inputs, the better the output. Even small variations in data quality can have a huge impact on the accuracy of the output. Think a 5% variance isn’t material? Please give us a call.
Granularity is even more important; the more granular the data input, the better off your AI-generated output is going to be. What is a “good number” when it comes to modeling, you ask? The short answer is that more is more, and the limit does not exist. What we can clearly quantify, however, is the number of queries our team ran in the last week of December 2023 alone: 6.7 trillion transactions. For comparison, the total global credit card transactions processed in 2022 were estimated at 678 billion.1
NIQ is positioned to ingest, cleanse, attribute, enrich, process, harmonize, and analyze data at a scale that would be nearly impossible to replicate. And, as we mentioned earlier, this was all done with you in mind. So, the question we’d like to pose to you is: “How can we work together to connect previously disparate data sources – at scale?” Don’t try to go it alone; we can activate (and win) far more if we work together.
678 billion
estimated total global credit card transactions processed in 2022
↓
6.7 trillion
number of queries NIQ ran in the last week of December alone
How Data is Handled Really Matters. Seriously.
Mishandling data is a surefire way to jeopardize the future of any organization that deals in data. It might sound melodramatic to put it like this, ‘but we can’t be a good partner to our clients if we’re no longer around. Data governance and stewardship are paramount here.
We’ve spent a century building relationships with retailers, and no one is as effective at managing large-scale retailer relationships as NIQ. We depend on our retail partners (in addition to other third parties) to complement our high-quality data so that we can, in turn, supply said data to our clients. Without these retailers and their data, NIQ (and other similarly situated partners) simply would not exist. When you’re looking for a partner that will be with you for the long haul, first look to how they handle their data.
Playing by the rules – as it relates to data service agreements – minimizes future-state risks for all.
Our clients trust NIQ largely because they’ve come to associate our brand with the highest ethical standards – with our handling of third-party data being a core variable in that equation.
Ethical conduct, relative to the stewardship of third-party data, is becoming even more critical as AI-based technology continues to rapidly advance and data cements its status as an indispensable cornerstone of business strategy.
As such, we’ve continued to counsel our clients and prospects relative to the benefits of both ethical handling of third-party data and how the right partnership can ensure you have (and maintain) access to the data that will gain you a competitive advantage – both today and into the future.
And while it may not be the most alluring of topics regarding AI, the great IP debate is coming – and coming fast. Who owns the IP that fuels AI solutions if the solutions are built leveraging leased data? Indeed, if leased data were “borrowed” (wink wink) in a manner that violates industry-standard service agreements, would any resulting work product be legally classified as fruit of the poisonous AI tree?
When it comes to IP issues stemming from the use of AI, Harvard Business Review writes, “There are infringement and rights of use issues, uncertainty about ownership of AI-generated works, and questions about unlicensed content in training data and whether users should be able to prompt these tools with direct reference to other creators’ copyrighted and trademarked works by name without their permission. These claims are already being litigated.”2
And how about regulatory and compliance issues? From what we’ve seen, there’s no question those are about to get trickier as well.
Indeed, according to the Center for Strategic and International Studies (CSIS), “The EU’s AI Act has extensive top-down prescriptive rules including prohibiting uses of AI that it says pose unacceptable risk; it’s in the final stages of passing. China has ruled that algorithms must be reviewed in advance by the state and “should adhere to the core socialist values”. The United States is taking its typical decentralized approach. The most likely outcome for the United States is a bottom-up patchwork quilt of executive branch actions.”3
For the good news, we’ll circle back to where we started: NIQ has spent a century navigating relationships with retailers and third parties so we can help you navigate the uncharted AI waters of IP, regulatory compliance, and ethics – minimizing your exposure and risk. We understand that our role in the new world of AI/ML is one part data partner, one part data steward, one part AI/ML solutions builder, and one part consultant, and we’ve been training for this for decades. Interested in learning more? Let’s chat.
But – Specifically – How Does This All Benefit Our Clients?
As we mentioned, we’re a brand that’s been in the AI game for quite some time. That means we’ve had the time to build some pretty incredible AI/ML solutions, and we’re excited to share how that experience translates to value for our clients. Meet NIQ Labs.
NIQ Labs is a groundbreaking initiative aimed at harnessing the collective power of top-tier talent and capabilities acquired through strategic M&As. Positioned as an innovation powerhouse, NIQ Labs stands poised to pioneer the future of inventive products and solutions – aimed at tackling client-specific challenges. Over the past two years, NIQ has invested over $1 billion in new data and capabilities to build a Full View of consumer shopping behavior that helps solve our clients’ challenges and reveal pathways to growth. Coupled with these investments, NIQ Labs taps into an extensive array of data assets, employing intuitive business intelligence tools that offer detailed market insights and predictive analytics driven by generative AI (GenAI) and authoritative data science.
NIQ Labs brings together an impressive pool of ~400 engineers, data scientists, and technicians who possess exceptionally specialized skill sets. This talented cohort serves as our dedicated innovation engine, focusing on the challenges that impact our clients most – via cutting-edge technological solutions – working alongside ~3,000 engineers and ~700 data scientists who operate in NIQ’s broader business operations.
The core objective is fostering scalable innovation within the NIQ ecosystem. Further, by prioritizing data integrity and security, we’re helping to ensure a reliable foundation for AI utilization, resulting in unprecedented innovations.
This tailored approach empowers our clients to make informed decisions, ensure data consistency, and safeguard stakeholder interests. With NIQ on your side, your team can depend on reduced inconsistencies, minimized errors, and enhanced data value.
Conclusion
If, like most manufacturers and retailers, you have aggressive AI/ML growth plans, pick the partner that has proven it can help you get there – and get you there faster. NIQ was in the business of AI long before it was trendy, and no other organization in the CPG, technology & durables, or retail space has the depth and breadth of data that NIQ possesses. Similarly, no one across these industries has built a more robust network of relationships with retailers and/or other third-party data suppliers – ensuring you have the connected data sets you need to maximize success for your AI efforts. NIQ leads with ethics; we’ll never compromise our partners’ relationships or trust, and there is no organization in the industry with a more seasoned, talented group of associates – layering unparalleled human intelligence into the AI equation outlined above.
Finally, we’ll continue to relentlessly invest to ensure that your team not only stays one step ahead of the latest developments when it comes to AI/ML but also one step ahead of what’s to come – before new trends have even been identified.
We’d love to chat with you about your organization’s AI plans.
- Navigating the AI Revolution.” Honeywell and OnePoll. May 2023. https://sps.honeywell.com/us/en/campaigns/productivity/discover-frictionless-retail.
- “Number of Credit Card Transactions per Second, Day & Year.” Capital One. Last updated June 9, 2023. https://capitaloneshopping.com/research/number-of-credit-card-transactions.
- Dayton, Emily. “Amazon Statistics You Should Know: Opportunities to Make the Most of America’s Top Online Marketplace.” BigCommerce. Accessed November 14, 2023. https://www.bigcommerce.com/blog/amazon-statistics/.
- “World Bank Open Data.” The World Bank. Accessed November 14, 2023. https://data.worldbank.org.
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