[BFM Business Logo, text appears: “Special Edition, BFM Business files” then “AI Uncovered: Leaders deploying AI with confidence.”]
[Voiceover]
Special Edition. BFM Business files. "AI Uncovered: Leaders deploying AI with confidence," with Frédéric Simottel.
[Frédéric Simottel]
Welcome to our show "AI Uncovered: Leaders deploying AI with confidence," in partnership with Sopra Steria Next.
We will obviously talk about the implementation of AI, generative AI in companies, and we will focus more specifically on AI within a global group that has a multitude of brands. Digital technology has long been a strategic focus for this group, and we will discuss it with you, Hélène Chaplain, CIO of the Pernod Ricard group.
Hello.
[Hélène Chaplain]
Hello.
[Frédéric Simottel]
Thank you for joining us. And also with us is Fabrice Asvazadourian.
Hello.
[Fabrice Asvazadourian]
Hello Frédéric. Hello Hélène.
[Frédéric Simottel]
Fabrice is the CEO of the consulting firm Sopra Steria Next. So, who exactly is this group? Four thousand consultants, right?
[Fabrice Asvazadourian]
Exactly.
[Frédéric Simottel]
And obviously a subsidiary of the IT services company Sopra Steria.
Hélène, I’ll start with you. Beyond productivity, how does Pernod Ricard use technology today, especially artificial intelligence, to promote its products, generate demand? And how do you convince yourself that you’re making the right technology choices?
[Hélène Chaplain]
That’s a very broad question, but maybe to start, the strength of our model, or our group, is indeed to rely on two very structuring and demanding competitive advantages: a very wide brand portfolio and, on the other hand, a very broad distribution presence.
So, in addition to the quality of our spirits, we need to work on visibility and value proposition to bring the right brand through the distribution model to our consumers.
Overall, we have worked on this visibility in a very granular, structured, and advanced way by using AI to define again within the brand portfolio and our multichannel presence, what is the right combination for a given consumer and ultimately for each individual consumer.
What we saw come as a wave of disruption initially was that we had to get referenced on Google, so it was standard SEO, whether organic or acquisition. Then we saw that Amazon actually became the product search engine because we have consumable products, so we had to be visible there. That involved a commercial relationship with Amazon or its marketplaces to be available with the right value proposition, the right content, the right message, the right price, at least, with the consumers.
And what we see today is this new disruption with a new intermediary in the consumer experience, in the relationship with the consumer via generative AI.
So we are fundamentally disrupted or impacted, or at least very vigilant to bring our brands — since we are fundamentally intermediated — to bring our brands and work with all intermediaries. Generative AI is a new intermediary in the landscape.
[Frédéric Simottel]
And we will even talk about the new wave behind generative AI, which is the agentic wave. Fabrice, how can AI lead to changes in business models?
[Fabrice Asvazadourian]
First of all, I think everyone is convinced it will take some time, and slower than what we might have dreamed two years ago.
But, AI will enable companies to generate productivity gains by optimising processes beyond what is already embedded in company systems, which is probably the primary challenge. The cultural adoption phase is, in my opinion, largely behind us.
[Frédéric Simottel]
Yes, yes.
[Fabrice Asvazadourian]
That is probably a victory never fully won, but well. Today we are entering the phase of AI very focused on productivity, on all administrative tasks which today have enough added value, but are quite reusable by not super sophisticated AIs. That is the basic quantity-driven AI.
Then, as Hélène mentioned, AI is not just that.
[Hélène Chaplain]
No.
[Fabrice Asvazadourian]
It is also disruption. What I mean is optimisation — companies are used to optimising. Big companies, in particular, are optimisation machines. Disruption is more complicated. Disruption will come in value propositions, in how to showcase these products that can be fundamentally disrupted. This is where we will see real innovation AI will bring.
The key question for a leader is not to miss the first wave, which is essential — the one that generates the first ROI. Today everyone questions the ROI of their investments.
[Frédéric Simottel]
Yes, even if sometimes there is a disappointing effect for some...
[Fabrice Asvazadourian]
Yes, it is hard; it’s harder than what was promised.
[Hélène Chaplain]
It’s not magic.
[Fabrice Asvazadourian]
So, it’s not magic. Even though we discovered something magical two years ago. So we have to keep doing this, and in my opinion, this is the very short-term challenge to keep investing because the sums involved in budgets are still significant.
On the other hand, we must remain alert and active on these disruptions that are coming and that are simple but not easy to fully integrate into these models.
[Frédéric Simottel]
And precisely, I was saying to Hélène Chaplain that the agentic wave is arriving behind this generative AI, with its power. For you, it could change a lot, within your offerings, your own works, the usage, the impact it can have for user companies like yours.
But it also has an effect on the IT or digital suppliers you deal with.
[Hélène Chaplain]
Exactly. Beyond productivity and competitiveness it can generate, there are other implications because, ultimately, the users of generative AI are consumers.
That means in interaction with GPT, the user will provide information about who they are, their feelings, emotions, seeking an experience, just by simply asking questions, they give a lot of information. What happens in this new intermediary, GPT or other AIs — OpenAI just announced opening their e-commerce section.
So, it’s significant. We observe this new intermediary which presumably has very advanced knowledge of the user, who is also a consumer with knowledge, and will propose, push or not our products. How it selects, what content it pushes, if we talk about e-commerce, which channel it uses — these consumer interactions are things we do not control because we don’t know what data underlies this routing.
So this creates a very strong implication: a new intermediary we have to address, prepare for, and more than prepare for, since it’s already here. It’s like before, referencing on Google; now it’s the ability to exist with our content, offers, and brands — but without knowing how decisions are made. This has implications, and I wouldn’t call it a risk, but rather an opportunity, on our value chain.
[Frédéric Simottel]
Yes, because that’s the difficulty: usually when we hear companies using generative AI, it’s within their own environment, with data they control.
You, at Pernod Ricard, have many brands, distributors, and so on. You cannot control all these brands.
[Hélène Chaplain]
No, and also, some data is generated by our users, by our consumers — UGC (User Generated Content). We have data generated by third parties, by our distributors. And since models source data we don’t own, or even if we do, it has been exposed, we don’t know exactly which data is used as a source and how the value proposition is formed.
We all seek experiences and offers that are individualised and personalised. In this case, we don’t know the user who has become a consumer, and we don’t know how the algorithm or the model operates and what it is sourcing to finally push one thing, push our product, or push another product.
[Frédéric Simottel]
So, Fabrice, does this agentic wave mean there will have to be agents, agents of agents, super agents, right? Orchestrators?
[Fabrice Asvazadourian]
Orchestrators, commanders, captains so agents communicate well.
Yes, we already see it today. When you see a fleet of drones flying synchronously, they talk to each other and interact — so we see it maybe in a more applied way.
There will be agents working in warehouses managing entries and exits who will communicate with agents in charge of logistics optimising fleet routes.
So, they must communicate. The question is: at some point, who decides?
[Hélène Chaplain]
The super agent.
[Fabrice Asvazadourian]
For large companies, super agents or commanders will decide when different agents have proposals or inputs that are potentially conflicting.
I think that will be the future challenge.
What Hélène said is very insightful because when Google was there, when Amazon was there, large companies learnt how to decode how to influence and position themselves well.
[Hélène Chaplain]
Yes, organically or by acquisition.
[Fabrice Asvazadourian]
Here, we have much blacker boxes. Before understanding algorithms which say: because you have such a feeling, or such information we don’t know well, we propose this or that. We will have to learn this.
So, the sooner we start testing, the faster we will learn.
And then, I think we will see what strong brands do — they always manage. Average brands will struggle a lot.
[Frédéric Simottel]
We will see that on the market. So, in all this, Hélène, what should be the role of the CIO, the IT director in this orchestration, this organisation?
[Hélène Chaplain]
It is very broad.
First, we talked about disruption for actors like Pernod Ricard, but also disruption among our suppliers, the software industry.
We see that they built themselves around process structuring, selling productivity — I won’t name the German company — with extremely rigid processes governing many companies.
But AI brings disruption to this very monolithic vision of processes, creating the opportunity to generate code on the fly, flows of interface, even synthetic data to feed the model.
So, there is a potential rupture among our suppliers and partners, and we must make choices.
And the first point I want to recall is that in these choices, the main point is the technology investment strategy of a company — at least a CAC40 group.
It is extremely significant because it usually sits around 3% of turnover.
When you invest 3% of turnover every year, you are manoeuvring to correlate technology investment strategy with what it should bring in productivity and competitiveness internally, but also in what it should enable in terms of value chain disruption. We talked about the e-commerce business model on ChatGPT.
So, we have very high requirements. We must treat investment strategy as if it were at the core of the company’s engine. We must also choose technologies that have a foundational character.
Again, these are significant sums committed for the long term because we normally build things to last and never start from scratch.
So, the agent, the super agent, the agent of agents, we must build around what we call legacy, which is far from modern.
We must consider the complexity of the information system, its integrity.
Obviously, we must scale all that.
Before this interview, we talked about defining guiding principles, evaluation principles for self-financing loops.
We must connect technological strategy and business strategy complementarily — one no longer serving the other.
[Frédéric Simottel]
So the CIO also becomes Chief AI Officer at the same time.
[Fabrice Asvazadourian]
Yes, well, we should ask Hélène what she thinks, but if we look at history, we’ve had generations of Chief Digital Officers, and today you don’t hear much about them anymore.
So now, we need to have Chief AI Officers. This is the moment because companies need focus; otherwise, we can’t structure today.
We see many of our clients building AI factories to concentrate all resources.
In five years, we will talk again.
[Frédéric Simottel]
Thank you both for coming to talk about all this in this show, "AI Uncovered: Leaders deploying AI with confidence." Thanks to Hélène Chaplain, CIO of Pernod Ricard group, and Fabrice Asvazadourian, CEO of the consulting firm Sopra Steria Next. See you soon for a new programme.
[Voiceover]
Special Edition. BFM Business files.