Product data management in transition: Why AI and PIM are the future

The combination of AI and PIM is essential to efficiently manage product data, reduce costs and accelerate time to market by automating manual processes and improving data quality.

In an increasingly digital world, product data is the key to success. Companies must manage vast amounts of information, provide consistent data across multiple sales channels, and meet ever stricter regulatory requirements. But many companies are still struggling with outdated, manual processes that are inefficient and prone to errors. The solution? Artificial intelligence (AI) and product information management (PIM). These technologies enable companies to optimize their product data processes, reduce costs and significantly accelerate market launch.

The growing challenge: flood of product data and manual processes

Companies now manage an average of over 300,000 product data records per year — and the trend is rising. With the increasing number of product variants and growing internationalization, the effort required to maintain this data is also increasing. Studies show that maintenance costs are growing by up to 25% annually, which increases pressure on companies to find more efficient solutions.

In addition, there is the increasing number of sales channels. In the last five years, the number of online and offline sales channels has more than doubled. Customers expect consistent and high-quality product information — regardless of whether they buy on marketplaces such as Amazon, in web shops or in stationary retail stores. If you don't get involved, you lose competitiveness.

Why traditional methods are no longer enough

Many companies still rely on manual data maintenance and confusing tables. This not only requires a lot of time, but also leads to a high error rate: Around 80% of data maintenance time is spent on repetitive, manual tasks. These inefficient processes are not only costly, but also significantly delay the launch of products — by an average of 30-40%. The result is sales losses and a weaker market position.

Regulatory requirements are also increasing. Companies must spend an average of 10% of their turnover to comply with legal requirements such as textile labelling or packaging regulations. Manual processes are an enormous risk here, as errors in product information can lead to heavy penalties or recalls.

The solution: PIM and AI for automated product data management

A central PIM system combined with AI technologies provides a remedy. Automation makes it possible to efficiently collect, manage and display product data in real time on various channels. The benefits are obvious:

  • Increasing efficiency: Companies that use a PIM system can reduce manual work by up to 40%.
  • Get to market faster: Automated processes reduce time-to-market by up to 30%.
  • Higher data quality: AI detects errors, adds missing attributes and automatically optimizes product descriptions.
  • Consistent multi-channel communication: Data is controlled from a central source and is always up to date on all platforms.

AI is revolutionizing product data management

The role of AI in product data optimization is particularly exciting. AI-based systems, for example, can perform automatic translations and thus reduce internationalization costs by up to 70%. They can also automatically generate product descriptions and technical attributes so that companies can automate almost 100% of their product data maintenance.

Another area of application is compliance testing: AI-based solutions analyze product information and ensure that it meets regulatory requirements. This reduces the risk of expensive recalls and significantly increases legal certainty.

Future-proof with PIM and AI

Digital transformation does not stop at product data management either. Anyone who invests in PIM and AI now secures long-term competitive advantages. Companies that already rely on these technologies benefit from more efficient data management, lower error rates, and faster time to market.

sources:

  • Ventana Research, “Product Information Management Benchmark Report,” 2019
  • Forrester Research, “The Forrester Wave™: Product Information Management,” 2021
  • Google/Ipsos Consumer Insights Report, 2020
  • Gartner, “Multichannel Marketing Effectiveness Survey,” 2020
  • Accenture, “Cross-Border E-Commerce Compliance Study,” 2021
  • McKinsey & Company, “Automation in the Digital Age,” 2020
  • McKinsey & Company, “Time-to-Market Benchmark Study,” 2019
  • TechValidate, “Product Data Quality Survey,” 2019
  • Accenture, “Unlocking the Value of Product Information Management,” 2020
  • Forrester, “PIM Case Studies: Best Practices,” 2021
  • Gartner, “The Future of AI in Content Management,” 2020
  • IDC, “Regulatory Compliance and Cost Saving in E-Commerce,” 2021
  • Forrester Consulting, “Localized Content and Its Impact on Global Markets,” 2019
  • AX Semantics, “NLG (Natural Language Generation) Pilot Studies,” 2021
  • HubSpot, “AI in eCommerce Content Creation Survey,” 2020
  • Nucleus Research, “Improving Conversion Rates with Quality Content,” 2019
  • Adobe Digital Insights, “The State of Digital Advertising,” 2020
  • IDC, “Optimizing Creative Workflows with DAM,” 2018
  • Forrester Research, “The ROI of DAM Solutions,” 2019

Picture from Lorenz Schneidmadel

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Lorenz Schneidmadel
CEO – Betrieb & Produkt

contact@ainavio.com
+49 (0) 2842 - 929987-3

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