WASHINGTON, D.C. — Procter & Gamble’s newly appointed chief executive, Shailesh Jejurikar, told investors on Tuesday that brand loyalty alone cannot offset the pressure of rising input costs, and that the firm is leaning on artificial‑intelligence tools to protect margins as global inflation persists.

Jejurikar noted that raw‑material prices for key commodities such as palm oil and petrochemicals have climbed roughly 6 % year‑over‑year, pushing the company’s cost‑of‑goods‑sold higher across its core product lines. “We are forced to make disciplined pricing decisions,” he said, adding that about 40 % of the recent price adjustments have been passed on to consumers in North America and Western Europe.

He emphasized that consumer loyalty, while still strong—P&G’s brand‑trust score remains above 80 % in its latest survey—cannot be relied upon to sustain growth when households tighten spending. “Loyalty gives us a cushion, but it does not replace the need for value‑focused innovation,” Jejurikar explained, citing a 3 % dip in repeat‑purchase rates for premium segments.

To mitigate the cost squeeze, P&G has accelerated its AI programme, allocating roughly $500 million this year to machine‑learning models that optimize supply‑chain routing and demand forecasting. The company reports that AI‑driven insights have already shaved 2 % off logistics expenses and reduced out‑of‑stock incidents by 15 % in test markets.

Analysts see the strategy as a hedge against margin erosion. The firm reaffirmed its 2025 earnings‑per‑share target of $6.10 and maintained a 2.5 % dividend yield, while warning that further price hikes could trigger competitive backlash. Shares rose 1.8 % in early trading following the briefing.

Jejurikar concluded that the combination of selective price passes, targeted AI investments, and continued focus on product relevance will be essential for preserving shareholder value amid an uncertain macro‑economic environment.

Key Takeaways

• Raw‑material costs up about 6 % YoY, prompting selective price increases.
• P&G is investing $500 million in AI to cut logistics costs and improve forecasting.
• The company maintains its 2025 EPS outlook while monitoring consumer price sensitivity.

Overall, the new leadership signals a pragmatic shift: leveraging technology and data‑driven pricing to complement, rather than rely on, historic brand loyalty as global price pressures persist.