AI is becoming central to packaging sustainability conversations, especially in consumer packaged goods. For firms with many SKUs and complex packaging portfolios, the appeal is escalating as they navigate mounting regulatory reporting pressure and scrutiny.
Against this backdrop, AI offers a tantalising vision of analysing data, managing processes and reporting automatically and at speed with less manual work. Resource costs and workloads are rising, manual processes are straining and spreadsheets can’t cope.
In these circumstances automating RAM assessments and EPR (Extended Producer Responsibility) reporting sounds great. Reducing the effort to meet PPWR (Packaging and Packaging Waste Regulation) conditions and seeing across Green Claims sounds exciting.
Major CPG organisations are seeking to use AI and automation to reduce complexities, while growing ones see it as a chance to close competitive gaps.
Many will come up against a barrier they never envisaged: their packaging data architecture simply isn’t ready to support, train or successfully implement AI.
Promise, promise, everywhere
Unilever, Nestlé and PepsiCo have discussed using AI and advanced analytics for sustainability with reporting as part of the agenda. Coca Cola partnered with an AI platform to implement, monitor and report on its sustainability initiatives. Nine brands including Danone, Colgate-Palmolive and Mars founded the Perfect Sorting Consortium to develop waste sorting AI.
Technology providers amplify the AI promises – though it is certainly logical to apply AI in this data-heavy, rules-based area to make faster decisions, assure compliance and reduce risk.
Coming from a software business which helps CPGs centralise, consolidate and control packaging data and workflows, I see the potential. I can also see a huge tripwire that most companies don’t see.
We have seen companies struggle to automate packaging artwork and labelling. They are learning that applying AI to artwork processes is complex, mainly because the underlying data is fragmented, inconsistent or poorly governed. They turn to us when they realise this needs organising first or their AI efforts may be fruitless.
AI in wider packaging sustainability will face this problem. AI can only work with what is there, not resolve disorganised data. In a regulatory environment that demands accuracy, traceability and defensibility that distinction is critical.
Before organisations can use AI to simplify sustainability reporting and compliance, they must answer a fundamental question: Is our data ready?
Packaging sustainability isn’t the perfect AI use case
Even with advanced ERP and packaging management software, teams find compliance reporting tough – as EPR in-scope companies in the UK discovered in the past two years.
With large volumes of data, repetitive assessments and complex calculations based on rule-based logic, packaging sustainability looks like a perfect use for AI.
AI could process information faster, deliver instant compliance checks, identify change impacts, modelling new materials and calculating environmental gains. It is already being used for sustainability-related tasks such as
- Recyclability and compliance assessments
- EPR and regulatory reporting
- Environmental impact comparisons
- Identifying impact reduction opportunities
- Faster insights for packaging teams
- Yet it must be more than a calculator and a reporting assistant. The holy grail is for it to become a true decision support layer to inform and enhance real-world sustainability.
The artwork parallels
Those experimenting with AI in artwork management are seeking faster cycles, fewer errors, less manual effort and more decision support. It holds exciting potential to automate artwork comparisons, catching branding snags, on-pack information issues and compliance mark checks that might otherwise be missed – plus speeding up the process. This is where the value at scale lies. If AI can begin to compare structured pack rules to artwork realities, it could catch deviations and underpin compliance not just in one region and language, but across them all.
Unfortunately, when companies try to contemplate this with disorganised data, it’s doomed from the start.
When data about, or rules governing, different things lie in disparate internal and external systems, with inconsistent naming conventions and unclear ownership, where should AI look?
Such disorganisation breeds missing and duplicated data, patchy adherence to rules and specifications plus redundant loops and rework requiring manual intervention.
AI won’t hide these problems, it will expose them and magnify the problem.
Packaging and wider sustainability initiatives face significant consequences. Incomplete or incorrect regulatory submissions, recyclability misstatements, audit headaches and C-suite ire are just some.
AI may accelerate outcomes, but that doesn’t work if they’re the wrong outcomes.
The missing link: data readiness
You cannot move directly from a disorganised, manual state to an organised and AI empowered one. Building a single structured, connected and well governed packaging and product sustainability data layer is essential to enable the transparency, traceability and clarity that lies at the heart of effective packaging and organisational sustainability.
Accurate reporting is a by-product.
4Pack can play a critical role bringing packaging and product information and specification data together, supporting regulatory compliance and powering artwork and packaging management workflows. It connects users with files and assets from a multifaceted, complete repository of key files, documents, images and more.
This single, structured system creates what AI requires: a consistent source of truth across products, variants and regions. Relationships between products and packaging, components and materials are clearly defined and maintained.
This is fundamental to the final critical factor: AI solutions require careful training. Modelling the right behaviour is vital. Getting the right responses and outputs can ONLY stem from AI being able to call down accurate data, regulatory rules and asset.
AI and automation around packaging sustainability could be truly transformative – but data fragmentation and disorder can stop it in its tracks. Only when packaging sustainability data is structured and governed is it traceable, auditable and defensible, letting you manage change and test assumptions. Reporting becomes repeatable rather than reactive.
AI moves at speed – so must brands
AI’s potential to support packaging sustainability is not in doubt. Readiness is. For multi-brand, multi product companies to adapt and adopt AI effectively, their data must be ready.
Pausing to fix your data foundations is not about slowing down – it is about enabling speed and agility tomorrow; preparing you to move faster and with more confidence and less risk.
As packaging waste regulation accelerates now is the time for CPG organisations to make themselves fit for an AI future.
