Coca-Cola turns to AI marketing as price-led growth slows

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Coca-Cola turns to AI marketing as price-led growth slows
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Shifting from price hikes to persuasion, Coca-Cola’s latest strategy signals how AI is moving deeper into the core of corporate marketing.

Recent coverage of the company’s leadership discussions shows that Coca-Cola is entering what executives describe as a new phase focused on influence not pricing power. According to Mi-3, the company is changing its focus from “price to persuasion,” with digital platforms, AI, and in-store execution becoming increasingly important in building demand. This reflects a change in consumer brand behaviour as inflation pressures ease and companies seek new strategies to maintain revenue growth.

That means expanding the role of AI in Coca-Cola’s marketing production and decision-making. The company has already experimented with generative AI in creative campaigns and continues testing how automation can help with content creation, campaign planning, and distribution.

Industry analysis from The Current points out that Coca-Cola has been embedding AI into marketing workflows and scaling its use in creative production and campaign execution. These efforts include using AI tools to generate images, assist with storytelling, and adjust campaigns in channels.

Testing AI in the marketing pipeline

The week’s reporting suggests the company is now testing AI-driven systems that can help automate parts of the advertising process, including drafting scripts or preparing social media content. While these initiatives remain in testing not full rollout, they illustrate how large brands are moving toward more automated marketing pipelines. Instead of relying only on agencies or long creative cycles, companies are exploring ways to shorten the path from concept to campaign.

During the past two years, many consumer goods have firms relied on price increases to offset rising costs. As inflation slows in several markets, analysts say that strategy has limits. Growth increasingly depends on persuading consumers to buy more often or choose higher-margin products. AI offers a way to refine that persuasion at scale, using data to shape messages, target audiences, and adjust campaigns in near real time.

Coca-Cola’s approach fits a wider trend in marketing technology. Generative AI tools have quickly moved from experimental use to regular deployment in large enterprises. According to McKinsey’s 2024 global AI survey, about one-third of organisations already use generative AI in at least one business function, with marketing and sales among the most common areas of adoption. Analysts expect that share to keep rising as companies test automation in creative work and customer engagement.

AI moves upstream in enterprise strategy

What strikes out in Coca-Cola’s case is how the corporation frames AI not only as a cost-saving tool, but also as part of a broader operating shift. By focusing on persuasion, the company signals that AI’s value lies in shaping demand, not improving efficiency. That includes using AI to analyse consumer behaviour, tailor messaging to different markets, and support local teams with adaptable content.

The strategy also reflects a growing tension in the marketing sector. Automation can speed up production and test more campaign ideas, but it also raises questions about creative quality, brand consistency, and the role of human teams. Companies experimenting with AI-generated content must still ensure that messaging aligns with their brand identity and cultural context. For global brands like Coca-Cola, that challenge becomes more complex because campaigns frequently need to work in many regions.

Another factor shaping this transition is the rapid growth of digital advertising channels. As spending shifts toward social platforms, streaming services, and online retail media, the volume of content required has expanded. AI tools offer a way to produce many versions of ads, test different approaches, and adjust messaging based on performance data. This makes automation appealing not only for cost reasons, but also for speed and flexibility.

Coca-Cola’s move reflects a broader pattern: AI adoption is moving upstream in business processes. Early deployments frequently centred on analytics or internal automation. Companies are now applying AI in customer-facing functions like marketing strategy, creative development, and campaign management. That change suggests that AI is becoming part of how companies compete for market share, not how they reduce expenses.

The firm has not indicated that AI will replace creative teams or agencies. Instead, the current direction indicates a hybrid model in which automation handles repetitive or data-heavy tasks while human teams guide brand voice and campaign concepts. Many marketing leaders believe that this blended approach will define the next phase of AI adoption.

Coca-Cola’s emphasis on persuasion over pricing may impact how other consumer brands approach growth in a post-inflation environment. If AI can assist businesses in more precisely shaping demand, it may minimise reliance on price increases or mass-market campaigns.

(Photo by James Yarema)

See also: PepsiCo is using AI to rethink how factories are designed and updated

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