New HFS Research Report in Partnership with Cognizant Unveils How the '15% Club' is Reaping Real Business Value from AI

Rhea-AI Summary

Cognizant (NASDAQ:CTSH) and HFS Research have released a comprehensive study revealing that only 15% of consumer goods companies successfully scale AI initiatives. This elite group, dubbed the "15% Club," achieves significant ROI through strong AI governance, agile funding, and business-driven implementation.

The research highlights how successful companies are achieving measurable results across multiple areas: 50% reduction in marketing production time, 25% increase in global campaign reach, and improvements in supply chain, product innovation, and customer service. The study emphasizes that 60% of AI spending now occurs outside central IT budgets, with business units driving implementation.

Key success factors include strong C-suite sponsorship, cross-functional alignment, dedicated AI budgets, and a growing focus on agentic AI for autonomous operations.

Positive

• Elite '15% Club' companies demonstrate successful AI scaling and measurable ROI
• Marketing efficiency improved with 50% reduction in production time and 25% increase in campaign reach
• 60% of AI spending now driven by business units, showing strong operational integration
• Multiple areas showing concrete results: marketing, supply chain, product innovation, and customer service
• Development of agentic AI capabilities for autonomous operations

Negative

• 85% of consumer goods companies fail to scale AI initiatives successfully
• Significant organizational changes required for successful AI implementation
• Heavy dependence on governance and C-suite sponsorship for success

New research reveals only 15% of consumer goods companies successfully scale AI, but those firms—the "15% Club"—achieve significant ROI by prioritizing governance, agile funding, and business-driven AI initiatives across marketing, supply chain, customer service and product innovation.

BOSTON, July 10, 2025 /PRNewswire/ -- HFS Research, in partnership with Cognizant, has released a new report revealing how a select group of consumer goods firms—dubbed the "15% Club"—are moving beyond AI experimentation to enterprise-wide impact. Titled "The 15% Club: How Leading Consumer Goods Firms Turn AI Pilots into Scaled Success," the research highlights what's working right now in the AI adoption playbook and how the front-runners are using governance, investment, and agility to fuel growth and transformation.

"AI isn't failing because the tech doesn't work—it's failing when organizations don't change around it."

The study, based on executive interviews across major North American consumer goods organizations, finds that only 15% of AI initiatives reach scaled production—but within this elite group, AI is making measurable impact in marketing, supply chain, product innovation, and more.

"AI isn't failing because the tech doesn't work—it's failing when organizations don't change around it," said Phil Fersht, CEO and Chief Analyst at HFS Research. "The 15% Club is proving that when you back AI with governance, flexible funding, and business-driven intent, you can unleash real competitive advantage. This is about rewiring the enterprise for agentic AI, not just running experiments."

Key Findings:
The 15% Club is not just a statistic—it's a persona for next-gen enterprise AI maturity. These firms share several critical traits:

• Strong AI governance and C-suite sponsorship, including AI councils and dedicated AI leadership roles
• Cross-functional alignment from the start, often embedding AI into broader transformation programs
• 60% of AI spending now occurs outside the central IT budget, driven by business units such as marketing, supply chain, and R&D
• Dedicated AI budgets and agile investment models, including innovation funds and outcome-based funding milestones
• A growing focus on agentic AI, with use cases emerging in planning, reporting, and marketing automation

"At Cognizant, we empower CPG companies to become part of the elite 15% Club—not just by demonstrating the possibilities of AI and agentic AI, but by architecting their entire transformation journey. With deep domain expertise and a robust ecosystem of technology partners, we embed AI at the core of our clients' operations—from product innovation and intelligent supply chains to customer service, marketing and sales transformation. Our approach is grounded in turning AI potential into measurable performance and lasting competitive advantage," said Anup Prasad, SVP & Head of Cognizant's Consumer Business Unit.

Where AI Is Making a Difference
Rather than focusing on the pilot trap, the report emphasizes where AI is already delivering results:

• Marketing: Generative AI tools are transforming content creation and personalization. One firm used AI to produce marketing videos in 90 languages—reducing production time by 50% and increasing global campaign reach by 25%, without a proportional increase in cost.
• Supply Chain: AI is improving demand forecasting accuracy and inventory optimization.
• Product Innovation: GenAI is guiding new product development with speed and precision.
• Sales & Revenue Management: AI is being used for trade promotion optimization and pricing strategy.
• Customer Service: AI is accelerating the design, development and delivery of enhanced and more engaging customer experiences.

Looking ahead, leaders are laying the groundwork for agentic AI—autonomous systems that can execute multi-step processes with minimal human oversight. Early use cases include internal reporting automation, stock-level management, and intelligent order processing.

"The organizations winning with AI aren't necessarily the biggest—they're the ones treating AI like a strategic capability, not a side hustle," said Ashish Chaturvedi, Executive Research Leader at HFS Research. "We're seeing AI-driven marketing personalization, content generation, and even new product innovation accelerate across the 15% Club. These are early signs of scalable transformation."

About the Report
"The 15% Club: How Leading Consumer Goods Firms Turn AI Pilots into Scaled Success" is based on in-depth interviews with 15 executives at consumer goods organizations across North America. Roles include Chief Innovation Officers, VPs of Analytics, and business unit leaders across marketing, supply chain, and operations. Download the full report here: https://www.hfsresearch.com/research/leading-consumer-goods-pilots/

About HFS Research
HFS is a leading global research and analysis firm trusted by major enterprises, technology providers, and business leaders. Our mission is to empower our clients to tackle challenges and make bold moves by arming them with visionary, independent insights on technology, business models, and market change.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the adoption of generative and/or agentic artificial intelligence, the effects of such artificial intelligence on the consumer goods industry and the competitive opportunities in the marketplace. These statements are neither promises nor guarantees but are the findings of the study discussed above and remain subject to a variety of risks and uncertainties, many of which are beyond Cognizant's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause outcomes to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets Cognizant and its clients compete in, and the other factors discussed in Cognizant's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

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SOURCE HFS Research

FAQ

What is the '15% Club' in Cognizant's AI research report?

The '15% Club' refers to an elite group of consumer goods companies that have successfully scaled their AI initiatives across their enterprises, achieving significant ROI through strong governance, agile funding, and business-driven implementation.

What are the key success metrics reported in Cognizant's AI study?

The study reported 50% reduction in marketing production time, 25% increase in global campaign reach, and significant improvements in supply chain efficiency, product innovation, and customer service operations.

How are successful companies funding AI initiatives according to the Cognizant report?

60% of AI spending now occurs outside the central IT budget, with business units such as marketing, supply chain, and R&D driving implementation through dedicated AI budgets and agile investment models.

What are the main barriers to AI success according to the HFS Research and Cognizant study?

The main barriers are not technical but organizational. Companies fail when they don't implement proper governance, secure C-suite sponsorship, establish cross-functional alignment, or treat AI as a strategic capability rather than a side project.

What is agentic AI and how are companies using it according to the Cognizant report?

Agentic AI refers to autonomous systems that can execute multi-step processes with minimal human oversight. Companies are implementing it for internal reporting automation, stock-level management, and intelligent order processing.