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### Unveiling Yili’s Internal AI Platform: Benefits, Limitations, and Realities

Chinese dairy giant Yili believes that artificial intelligence (AI) in product innovation lies in f…

Yili created its proprietary AI platform, Yili-GPT, a few years back to enhance problem-solving capabilities across different business domains. While the platform has proven to be beneficial, it also has its limitations.

According to Tiger Shang, General Manager of Yili Digital Technology Centre, “Yili-GPT has shown effectiveness in generating AI responses for product and concept development challenges. However, it is not a standalone solution for achieving final outcomes.” The platform excels in expediting innovation processes and enhancing efficiencies, serving as a valuable tool for refining concepts but not as a substitute for human creativity.

Shang emphasized that Yili-GPT aids in overcoming language barriers and conventional thinking patterns by swiftly analyzing global consumer feedback from social media. Nonetheless, he stressed that human intervention remains essential in translating this analysis into innovative actions.

The AI platform is instrumental in analyzing diverse data sets, including consumer trends, ingredient information, regulations, and flavor profiles, to accelerate the creation of trendy recipes. Shang noted, “AI has significantly expedited our product innovation process, which traditionally relied on limited expert inputs.”

Yili strategically integrates AI across its supply chain, spanning product strategy, development, design, production, and market entry, resulting in enhanced operational efficiency. The evolving consumer demands in China necessitate rapid and personalized product innovations, driving food and beverage brands to leverage efficiency-enhancing technologies like AI to stay competitive.

From a global perspective, AI, with its Natural Language Processing (NLP) capabilities, has been pivotal in Yili’s international expansion endeavors. Shang highlighted AI’s role in deciphering consumer data from various markets worldwide, facilitating the company’s product development and launch strategies in regions such as South East Asia, Japan, and the United States.

In recent years, Yili has expanded its presence beyond China, notably in South East Asia, through strategic investments in Indonesia’s new factory and the acquisition of Thailand’s prominent ice cream brand Chomthana, establishing regional operational hubs termed ‘dual centres.’

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Last modified: January 23, 2024
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