Tey Bannerman, who leads McKinsey’s AI-driven customer experience and hyper-personalisation work, explores how AI is quietly transforming packaging, supply chains, and innovation.
The vast, interwoven ecosystem of packaging and innovation is something most people never pause to consider. Yet, within its layers—each fold, lies a world of hidden ingenuity. It is a silent force shaping how products reach us, endure, and impact the world beyond their moment of use. To step into this world is to step into a realm of complexity and interconnectedness, where solutions are not solitary inventions but intricate collaborations that unfold across industries and time.
As we unravel the mechanics of supply chains, we find that every link is both an opportunity and a challenge. The flow of materials calls for a new kind of intelligence that can see beyond individual components. According to Tey Bannerman, who heads up McKinsey’s client work in AI-driven customer experience and hyper-personalisation, AI embedded across these layers has the potential to amplify the human insight that underpins much of the process today, weaving together disparate data points into a cohesive narrative of efficiency and possibility.
As generative AI disrupts the design and business landscape, uncertainty looms over the role of human creativity in product innovation. However, Bannerman suggests that instead of signalling the demise of artistry, AI presents an unprecedented opportunity to expand creative potential.
“Walking around makes you realise the many layers within the packaging and innovation ecosystem,” he said, speaking from February’s record-breaking Packaging Innovations & Empack. “Just talking about customer issues, the challenges they’re trying to solve, and how each manages themselves along the value chain has been fascinating.”
It is easy to overlook the artistry behind the ordinary. A simple beverage bottle, for instance, is not merely a vessel but a feat of engineering – designed to withstand extremes, preserve taste, and feel familiar in the hand yet unseen in the mind. Decades of refinement have gone into the objects we consume without thought, and therein lies the paradox: the more seamless the design, the less we perceive its brilliance.
According to Bannerman, the most fascinating conversations about AI aren’t happening in the expected spaces of digital art, chatbots, or robotics. Instead, they unfold in the unnoticed details of everyday life – the precision of a toothpaste tube that never splits, the perfect insulation of a coffee cup, and the seamless functionality of a shampoo pump. These are the quiet triumphs of design, where AI isn’t replacing creativity but expanding its reach. With machine learning optimising supply chains, generative models accelerating material innovation, and AI-driven simulations testing thousands of design variations in moments, the way we shape the physical world is evolving faster than ever.
“While there aren’t many people who think about packaging deeply, 99% of the population never thinks about it at all,” he continued. “They don’t just overlook what packaging is or what it can do, but also how crucial it is in areas like food freshness, medication safety, and overall convenience.
“Consider the immense engineering, technology, and innovation that go into producing something as simple as a Coca-Cola or Pepsi bottle – designed to withstand a range of temperatures while maintaining product quality. These bottles are engineered to endure high ambient temperatures without warping or leaking and to prevent freezing at low temperatures by carefully balancing carbonation levels, material properties, and structural integrity. Once you understand the decades of research, material science, and precision engineering behind such everyday objects, you start to appreciate how seamlessly we consume products without a second thought.”
What makes this shift so powerful is its invisibility. AI isn’t just changing how packaging is made; it’s redefining what’s possible. It’s behind medical blister packs that ensure correct dosages, sustainable materials that extend shelf life, and engineering breakthroughs that reduce waste at an industrial scale. Yet, most people will never realise they’ve interacted with AI-driven design dozens of times before breakfast. “People should take a moment to think about packaging—not just how it affects their daily lives but also how much innovation goes into it,” he continued. “By developing an appreciation for packaging, we can start considering how it can continue to evolve and improve.
“People may not know much about materials or the full range of factors involved, but if they had access to the right information, it could radically transform how they think about innovation. Likewise, if a supplier understands the potential use cases beyond the traditional ones, they can recognise opportunities beyond their usual scope and bring value in ways they hadn’t previously considered.”
AI’s true power lies just as much in the quiet revolutions, the unseen optimisations that transform industries from within. Nowhere is this more evident than in manufacturing, where AI is accelerating progress and redefining it entirely. From predictive maintenance to advanced material simulations, AI is weaving itself into the fabric of production, unlocking efficiencies and possibilities that once seemed out of reach. “I think this is probably more relevant in this area than in the broader fields of design and innovation,” said Bannerman. “A lot of the potential value comes from the older aspects of manufacturing – the long-standing processes. While many key decisions influencing these processes are made on the brand design side, manufacturing and R&D hold far greater potential for transformation.
“It’s a bit of an overlooked area. And I think that’s partly because, as humans, we’re highly visual creatures. Many AI advancements in the news involve images and videos, making it easy to showcase and impress people. You can put an AI-generated image in front of someone, and they’ll go, “Wow!” But if you’re talking about optimising a niche manufacturing process to improve efficiency by 17%, that’s not as flashy.”
Bannerman insists that AI isn’t just an automation tool; it’s a catalyst for deeper thinking, enabling experts to push the boundaries of what’s possible. Whether in product design, logistics, or advanced manufacturing, its greatest value isn’t replacing human creativity but expanding it – helping people see solutions they might never have imagined.
“People are already using it daily – at home, at work – leading to increased personal efficiency,” he added. “But beyond that, companies, organisations, and businesses are now leveraging AI to solve complex problems and optimise processes in ways that were never possible before, even after decades of effort.”
There is often concern that AI could diminish human creativity by taking over tasks traditionally driven by human insight and originality. However, the reality unfolding is quite the opposite. Rather than stifling creativity, AI is enhancing it – empowering individuals to explore ideas, generate solutions, and experiment in ways that would have been time-consuming or even impossible in the past. By providing rapid access to vast amounts of information, uncovering patterns, and automating complex analyses, AI is not replacing creative professionals but equipping them with tools to push their ideas further than ever before.
“AI can help answer questions like: ‘Can this be printed on sustainable packaging?’ or ‘Can this material be used in a new way?’ AI provides tools and intelligence that empower individuals in ways they wouldn’t have had access to before,” he said. “As a result, we’re seeing more innovation emerge simply because people now have access to AI-driven insights and solutions.
“There’s a lot of research showing that companies and individuals who overly rely on AI to make decisions for them aren’t seeing as much – if any – benefit compared to those who use AI as a tool to guide their judgment. The most effective approach is when AI works alongside human intuition, experience, and expertise rather than replacing them entirely.
“A lot of research suggests that individuals and organisations gain far more value when AI is combined with skilled professionals who bring insight, experience, and a deep understanding of their field. It’s not just about having access to AI – it’s about how you use it.”
Bannerman emphasises that AI is not just a tool for automation but a catalyst for expanding human potential. Time, resources, and individual expertise have traditionally constrained idea generation and refinement. No matter how skilled or creative a person may be, there are natural limits to how many concept variations they can explore within a given timeframe. AI, however, changes this equation. Rapidly generating and analysing countless possibilities enables designers, engineers, and innovators to break through conventional barriers, uncover unexpected solutions, and push creative boundaries further than ever before.
“An individual, no matter how brilliant, has limitations when it comes to generating and testing ideas,” said Bannerman. “But in a world where AI can create 100 variations of a concept in seconds, it allows for rapid experimentation. A person might look at an AI-generated variation and think, ‘That’s something I hadn’t considered – let me test it and see what’s possible’. This ability to iterate at greater speed and scale naturally leads to more innovation.”
The reality is that AI is a fundamental shift in how industries operate, innovate and compete. While some scepticism and resistance may linger, history has shown that technological advancements do not wait for universal acceptance. Businesses, designers, and engineers who recognise AI’s potential and integrate it into their workflows will shape the future, push the boundaries of what’s possible, and accelerate progress in once-unimaginable ways.
This conversation will only grow in relevance as more industries embrace AI-driven innovation. Events like London Packaging Week in October will serve as key platforms for exploring these advancements, bringing together experts, brands, and technologists to discuss how AI is reshaping design, manufacturing, and sustainability. With a conference programme featuring over 70 of the brightest minds in brand packaging, AI will no doubt be central to the debate – whether as a tool for creative exploration, a driver of efficiency, or a challenge to traditional ways of working. As companies navigate this transformation, the choice becomes clear: adapt, thrive, stagnate, and struggle. The most successful businesses won’t be those who resist AI but those who harness it – leveraging its capabilities to drive efficiency, creativity, and long-term success.
