Imagine a world where your favorite beverage company isn’t just quenching your thirst but is also at the forefront of a technological revolution. That’s exactly what Coca-Cola is doing with AI, and it’s transforming not just the company, but the entire beverage industry. But here’s where it gets controversial: while some see AI as a game-changer, others worry about its impact on jobs and creativity. So, how did Coca-Cola’s leadership develop a taste for AI that’s now rippling across its global empire? Let’s dive in.
In early 2023, Coca-Cola—the mastermind behind Dasani water, Fairlife milk, and the iconic Coke brand—took a bold step. They formed a cross-functional ‘digital council’, bringing together senior leaders to map out all digital capabilities, including AI, across the company. The goal? To ensure everyone was on the same page with their AI strategy. And this is the part most people miss: while Coca-Cola was already using AI more than expected, they discovered duplication of efforts and siloed operations. There was no standardized way to measure the impact of these initiatives. Sound familiar? Many companies face this challenge, but Coca-Cola decided to tackle it head-on.
Enter John Murphy, Coca-Cola’s president and CFO, who steered the digital council to chart a new course. He brought in key leaders like Chief Marketing Officer Manuel Arroyo and Chief Information Officer Neeraj Tolmare to ensure a diverse mix of perspectives. Their focus? Three priorities: the consumer, customers (including bottlers and retailers), and corporate employees. Murphy puts it simply: ‘It’s about getting the right people in the room to align on what gives us the most value.’ But is this approach too top-down? Or is it the secret sauce for successful AI integration? Let’s explore.
The results speak for themselves. Coca-Cola’s AI usage has exploded, often maximizing scale wherever possible. Employees are using a ChatGPT-like tool for internal data searches, while external applications include an AI-generated Christmas ad and a partnership with Adobe. This partnership allows Coca-Cola’s designers to train AI models, speeding up content creation for over 200 brands in more than 200 countries. These efforts landed Coca-Cola the No. 6 spot on Fortune’s AIQ 50 list, ranking the top Fortune 500 companies in AI deployment. Impressive, right? But here’s the kicker: Coca-Cola’s success isn’t just about technology—it’s about partnerships and leadership buy-in. Murphy himself uses AI for writing and research, setting an example for others. ‘If I’m not using ChatGPT or other AI tools, how can I expect my team to?’ he asks. Fair point, but does this approach scale across all industries?
When Murphy formed the digital council, Arroyo was his first call. ‘We’re a marketing and innovation company at heart,’ Murphy explains. ‘If we’re not aligned, we’re not off to a great start.’ And align they did. Arroyo reveals that AI is reshaping every aspect of Coca-Cola’s marketing, from media planning to consumer insights and content production. ‘AI drives the effectiveness and efficiency of our marketing,’ he says. Interestingly, out of nearly 2,000 global marketing employees, only two have ‘AI’ in their job titles. This reflects Coca-Cola’s belief that everyone, regardless of role, must embrace AI. But is this realistic? Or is it too much to ask?
Tolmare, as CIO, focuses on AI applications that can scale across the organization. ‘It’s not just about value in one area, but about scalability,’ he explains. One standout example? A customer ordering pilot program that uses a blend of generative and traditional AI to predict shopper behavior. By analyzing historical sales data, regional trends, and external factors like weather, the AI models help retail shop owners optimize stock levels. The result? A 5% to 20% increase in monthly sales at 1,000 test outlets. But Coca-Cola didn’t stop there. They’re sharing these insights with outlets via AI-crafted WhatsApp messages, offering personalized advice to boost sales and profits. ‘Once we saw it working, we scaled it globally,’ says Tolmare. Bold move, but is it sustainable?
As Coca-Cola continues to lead in AI, the question remains: Can other companies replicate their success? And more importantly, should they? What do you think? Is Coca-Cola’s AI strategy a blueprint for the future, or a cautionary tale? Share your thoughts in the comments—let’s spark a conversation!
