Diageo Revolutionizes Drink Industry with AI Powered Personalization

Background

Diageo, the global beverage powerhouse, is revolutionizing the drinks industry through its innovative integration of artificial intelligence and sensory data. Under Benjamin Lickfett's visionary leadership in digital breakthrough innovations, Diageo is crafting uniquely personalized consumer experiences across all touchpoints. By harnessing AI's potential, the company is transforming everything from whisky selection to digital gifting, seamlessly blending creativity with cutting-edge technology. This forward-thinking approach is not just enhancing e-commerce platforms; it's reimagining the entire customer journey, from online interactions to in-store experiences. Diageo's strategic embrace of AI demonstrates its commitment to pushing the boundaries of customer engagement, setting new standards for personalization and innovation in the global beverage market.

Executive Summary

• Diageo has revolutionized consumer experiences with its AI-powered "What's Your Whisky?" selector, delivering tailored product recommendations that precisely match individual preferences. This innovative approach sets a new standard for personalization in the beverage industry.
• The company's strategic implementation of cutting-edge digital technologies across multiple channels - from e-commerce platforms to on-shelf displays and immersive visitor centers - has dramatically elevated customer engagement. This multi-faceted approach ensures a seamless and interactive brand experience at every touchpoint.
• Diageo's acquisition of Vivanda, a pioneering technology company, marks a bold move to expand its sensory data capabilities and machine learning prowess across all beverage categories. This strategic integration positions Diageo at the forefront of AI-driven innovation in the alcohol industry.
• With an unwavering commitment to responsible innovation, Diageo rigorously ensures that all new technologies not only add substantial value but also remain free from biases. This ethical approach underpins the company's technological advancements, fostering trust and reliability.
• Diageo is poised for future growth, actively exploring groundbreaking opportunities in co-creation, 3D printing, and personalized digital overlays. These forward-thinking initiatives demonstrate Diageo's dedication to pushing the boundaries of innovation and shaping the future of the beverage industry.

Problem

Diageo's AI strategy is boldly focused on delivering exceptional, value-driven experiences for consumers. The company embraces a "think-big, start-small" philosophy, championing consumer-led innovation while conducting targeted experiments to gain crucial insights and build confidence in emerging technologies. AI is not merely seen as a personalization tool, but as a powerful catalyst for enhancing inclusivity and mitigating creative bias in design. This forward-thinking approach positions Diageo at the forefront of consumer-centric innovation in the beverage industry.

Solution

Diageo's flagship AI implementation, the "What's Your Whisky?" platform, stands as a testament to their innovative prowess. Leveraging Vivanda's cutting-edge sensory data technology, this platform creates highly personalized flavor profiles for consumers. Initially launched as an e-commerce tool, it has since been seamlessly integrated into physical retail spaces and visitor experiences, revolutionizing the way consumers interact with Diageo's products. Furthermore, Diageo has harnessed AI to optimize ad formats and content creation, ensuring pinpoint accuracy in media placements and maximizing engagement across all channels.

Impact

The results of Diageo's AI implementations have been nothing short of transformative. The whisky selector has not only captivated novices but also enticed experts, encouraging them to explore products outside their usual preferences. The technology's remarkable accuracy and value addition have instilled newfound confidence in consumers, empowering them to venture into Diageo's expansive portfolio. This success has opened up unprecedented opportunities for cross-selling and upselling, driven by powerful data-led insights that have redefined the company's approach to consumer engagement.

Change Management

While celebrating its successes, Diageo remains acutely aware of the challenges in navigating the AI landscape. The company is committed to ensuring that all innovations are genuinely consumer-led and value-driven, a complex but crucial task. In the realm of AI, Diageo recognizes the critical need to understand and control inputs meticulously, safeguarding against potential biases inherent in web data. The company maintains a balanced approach, embracing the excitement surrounding AI while proceeding with caution and responsibility to protect and enhance its brand equity.

Roadmap

Diageo's future in AI and related technologies is set to be groundbreaking. The strategic acquisition of Vivanda underscores the company's commitment to building unparalleled capabilities in sensory data and machine learning across its diverse product categories. With a keen interest in emerging areas such as co-creation, 3D printing, and digital overlays, Diageo is poised to usher in a new era where personalization and community involvement take center stage in product creation and design. This visionary outlook promises to redefine consumer experiences and set new industry standards.

Diageo's AI journey exemplifies a visionary approach to leveraging technology for unparalleled consumer engagement. By masterfully blending innovative solutions with responsible practices, the company has created personalized experiences that resonate deeply with both new and seasoned customers. This case study vividly demonstrates the transformative power of AI in enhancing consumer experiences, while maintaining a steadfast commitment to ethical considerations and a clear vision for future growth. Diageo's integration of AI into its core strategy represents a significant leap in digital transformation, illustrating how traditional industries can harness cutting-edge technologies to forge stronger connections and create formidable competitive advantages in the modern marketplace.

Publications:

Making it personal – Diageo on using tech to build connections with consumers

Diageo’s GenAI Tool Is Helping to Develop Brand Packaging

How Diageo is using AI to halve the price of 1,000 ad impressions