Sustained inflationary pressures and shifting demand patterns are reshaping the decision-making framework for CFOs in consumer-facing industries, with artificial intelligence playing an increasingly prominent role in areas such as pricing and forecasting.

This theme was explored in depth during a recent panel discussion focused on how financial executives are leveraging technology to gain consumer insights. The discussion was part of a retail-focused virtual event co-hosted by CFO Dive and Retail Dive.

Sonja Evans, Vice President of Business Intelligence and Strategy at marketing firm Blue Chip, noted that while overall inflation data has moderated, retailers are still dealing with the lingering effects of inflation. Consumers are highly price-sensitive, and their preferences have become harder to predict.

Evans said during the discussion that this shift is "not because consumers are panicking, but because they have recalibrated what they are willing to pay and where they choose to shop."

This volatility is making traditional forecasting models less effective and is increasing pressure on CFOs to adopt more dynamic management approaches.

Precision markdowns and synthetic audiences

Sudip Mazumder, Senior Vice President and Retail Industry Lead at digital transformation firm Publicis Sapient, said AI is helping companies move away from one-size-fits-all discounting strategies, linking markdown decisions to the relative performance of individual stock-keeping units.

He noted that some retailers have begun to "truly implement precision markdowns," citing apparel companies such as H&M and Zara as examples.

Evans highlighted product innovation and consumer research as another emerging area for AI application. "Companies are applying AI to innovation research," she said. For example, General Mills has used AI to build "synthetic audiences" to better understand and respond to consumers. Such tools are increasingly being used to accelerate early concept validation and refine how companies interpret consumer needs before products launch.

Meanwhile, Mazumder cited Albertsons as an example of a company deploying AI to infer shopping intent. If taco shells and ground beef are added to a cart, the system can recommend salsa or toppings in real time, thereby increasing basket size and improving convenience.

Brett Narlinger, Chief Revenue Officer at payments company Blackhawk Network, emphasized AI's transformative role in how consumers discover and choose products. He cited Giftcards.com as an example, noting its shift from traditional search toward more conversational and intent-driven interfaces. Narlinger said during the discussion that the site allows consumers to describe their goals rather than requiring them to search by brand or product name.

Narlinger also mentioned the broader trend of agentic AI deployments, which he described as "agent-to-agent communication," spanning the entire commerce journey from product discovery to checkout and fulfillment.

He also pointed out that many organizations are still struggling to effectively use the vast amounts of data they already possess. "We have massive amounts of data, but we haven't fully figured out how to use it," Narlinger said, adding that AI can help turn that information into actionable insights and actions.

Not a silver bullet

Despite the enthusiasm for AI, panelists also cautioned that technology alone cannot solve structural problems.

"It's not a silver bullet. It just amplifies whatever foundation you already have, whatever that data stack is," Evans said.

Mazumder added that poor data quality can lead to "hallucinations and poor decision-making." He emphasized that by focusing on foundational elements such as the right data infrastructure and talent, companies can "see better outcomes."

Panelists predicted that in the coming years, AI and data analytics will make CFOs more forward-looking and better able to anticipate shifts in consumer demand more quickly.

"It's going to be about the speed of information and insight," Narlinger said, "and that's going to be the rule."

Editor's note: The above views come from a panel discussion held on April 22 during a virtual event co-hosted by the editorial teams of CFO Dive and Retail Dive, titled "Is the Price Right? Understanding Consumers and the Economy." You can register for free here to access the full session recording.