Morgan Stanley selected the early winners and losers from the race to implement AI in the consumer sector. To comprise the list, the firm scored 114 companies on current implementation and future opportunity. Importantly, it was highlighted that consumer AI leaders are shifting from experimenting in pockets to enterprise-wide intelligence. Companies with robust access to customer data, operational scale, and fully embedded AI across their ecosystems were said to be pulling ahead.
The top leaders of AI implementation in the consumer universe include Walmart (WMT), Target (TGT), and Wayfair (W) within the broadlines category. DraftKings (DKNG), Sportradar (SRAD), and Flutter Entertainment (FLUT) stood out in the gaming category. As far as consumer staples, the list of AI winners included Oddity Tech (ODD), Procter & Gamble (PG), Colgate (CL), Coca-Cola (KO), and PepsiSo (PEP). Yum! Brands (YUM) was called out in the restaurant category. Looking ahead, structural advantages seen allowing the leaders to embed AI across operations include superior supply chains, scale and prevalent competitive positions, and access to a wealth of consumer data to inform decisions.
The consumer companies listd as AI implementation laggards included Arhaus (ARHS), Five Below (FIVE), Sally Beauty (SBH), AutoZone (AZO), O’Reilly Automotive (ORLY), Advance Auto Parts (AAP), PVH (PVH), and Amer Sports (AS). Morgan Stanley said the group of laggards reflect a combination of reliance on hard-to-automate manual labor, low-frequency purchases and/or weak data infrastructure. Looking ahead, those companies are seen as still having the potential to catch up.