General Mills says AI has generated millions of dollars in cost savings

Dive brief:

• General Mills tied millions of people at cost for AI projects, helping to promote efficiency and optimize its supply chain, officials said One investor conference Tuesday,
• The legendary of the food industry reduced the transportation cost and increased the level of customer service using AI in its logistics scheme, CFO Kofi Bruce Said. AI models also assess as much as possible 5,000 daily shipments from plants to godownsLeading for more than $ 20 million in savings Since its 2024 financial year. General Mills predicts real -time performance data in manufacturing $ 50 million in garbage Reduction in this year.
• General Mills’ digital, data and technology investment has doubled since 2019, CEO Jeff Horming. Its digital infrastructure is part of an attempt to strengthen the infrastructure Company’s boom strategyWhich was set in speed Five years AGO!

Dive Insight:

Even businesses put millions of dollars in AI initiative, leaders hope that expensive technology will end to save their business money.

Generative AI gets a poor reputation last year Its elusive returnsBut most businesses Did not decioritize the technology Despite disillusionmentIn those businesses which are still to reach ROI on AI initiative, the majority is still Expect cost savings To be Within three years, According to an IBM report.

Cost-saving attention is spread over industries.

Tymaker Mattel highlighted it AI initiative Last year as part of a comprehensive cost-saving initiative during an earning call. Financial services company Charles Schwab Also credited for the use of AI Less cost during a January Earning call.

Trimming costs and unlocking capacity can also increase revenue growth, expecting leaders. Domestic product manufacturer Colgate Pamolive- Said that this revenue was using AI in development management practices To avoid unnecessary costs And the top-rose growth during a conference at a conference September, JPMorgan Chase Officials estimate that the company estimates Use AI cases Will distribute around $ 2 billion in price during September conference.

“Either we will be able to process too much for the same money or spend less,” President and COO Daniel Pinto Said.

The cost of AI has also started slippingE, a welcome trend for enterprises. Accenture Identified 74% Annual cost fall between GPT-3 and GPT-3.5 Turbo from December 2021 to December 2024The existing cost structures were particularly placed under the microscope Launch Deepsek’s R1 Sample,

still, Aye skepticism is not inappropriate, Even enterprise with early signs of success.

Most technology decision -makers are dealing with the laundry list of adopting barriers. More than 90% leader Expressed concern about Liberal AI pilot According to the problems exposed by previous initiatives, according to InformationThe leaders also accepted the pressure to move rapidly to move the projects.