Is your labeling process costing your business more than you think? Many businesses overlook the critical role that labeling plays in product production costs and overall profitability. Are you aware of how much your labeling process is affecting your bottom line? Would you like to understand more about how optimizing this process can help you reduce unnecessary costs and boost your business revenue?
For Fortune 500 CFOs, staying ahead means more than just managing financials—it’s about investing in the right technologies to streamline operations. The solution lies in adopting future-proof, end-to-end, cloud-based software powered by artificial intelligence (AI) and automation. This strategic shift can optimize labeling processes, accelerate time-to-market, minimize errors, reduce dependency on external stakeholders, and enhance return on investment (ROI). Understanding the long-term benefits of this investment is crucial for CFOs aiming to cut costs, improve efficiencies, and maintain a competitive edge in a rapidly evolving marketplace–and it’s not as simple as you might think.
How Do AI and Automation Help With Labeling Costs?
Firstly, it’s important to understand the many ways AI is already transforming the labeling process. As AI continues to evolve, its impact is expanding beyond labeling to influence the entire product manufacturing lifecycle. Gartner predicts that by 2028, at least 15% of day-to-day work decisions will be made autonomously through agentic AI, up from 0% in 2024. For businesses managing complex labeling and artwork processes, this is a clear signal: the time to embrace AI and advanced technologies is now.
Let's explore some the key ways AI is already transforming labeling—and how these advancements are driving significant long-term cost savings for businesses:
Accelerating Time-to-Market - Speed-to-market is a critical factor in maintaining competitiveness. Traditional labeling processes, often manual and fragmented, can delay product launches. AI-driven automation addresses these challenges by streamlining workflows. For instance, AI algorithms can analyze vast amounts of data to ensure labels and artwork are consistent across all products and regions, reducing the risk of errors and non-compliance. This optimization can lead to significant reductions in cycle times, enabling faster product availability and revenue generation.
Minimizing Errors and Preventing Costly Recalls - Errors in labeling can lead to regulatory non-compliance, resulting in expensive product recalls and reputational damage. AI enhances accuracy by automating data validation and ensuring adherence to regulatory standards. For example, AI algorithms can analyze vast amounts of data with unprecedented accuracy, ensuring that labels and artwork are consistent across all products and regions, reducing the risk of errors and non-compliance. By mitigating such risks, companies can avoid recall-related costs and protect their brand integrity.
Reducing Dependency on External Stakeholders - Traditional labeling processes often involve multiple stakeholders, including design agencies and compliance consultants, leading to increased costs and extended timelines. AI-powered solutions enable companies to internalize these functions, reducing reliance on third parties. For example, AI allows for the creation of highly personalized labels and artwork tailored to specific consumer segments. This internalization not only streamlines operations but also results in substantial cost savings.
Increasing Scalability for Global Enterprises - Traditional labeling processes often struggle to keep up with complex global operations, leading to inconsistent branding, regulatory compliance issues, and increased costs. AI-driven labeling solutions provide a scalable framework that adapts to multiple regions, languages, and regulatory environments without additional overhead. With AI, businesses can ensure consistency across multiple product lines and markets and automatically adapt labels to meet region-specific compliance requirements all with a few simple clicks. This level of automation allows enterprises to expand into new markets faster while maintaining accuracy, compliance, and cost control.
Financial Implications and Long-Term ROI
It’s clear that utilizing AI can lead to major cost savings in the long run. But just how significant are these financial gains on a global scale? According to McKinsey & Company, AI use cases could unlock an additional $160 billion to $270 billion annually in profit for consumer packaged goods companies globally. These savings stem from enhanced operational efficiencies, reduced error rates, and faster product launches, collectively contributing to a robust ROI.
Many CFOs underestimate the hidden costs of manual labeling processes. Below is a direct comparison of the inefficiencies of traditional methods versus the cost-saving advantages of AI-driven automation:
Cost Comparison: Traditional vs. AI-Driven Labeling
| Cost Factor | Traditional Labeling | AI-Driven Labeling |
|---|---|---|
| Labor Costs | High – manual reviews, approvals, and edits require significant staff hours. | Reduced – automation minimizes human intervention. |
| Error-Related Costs | Expensive – labeling mistakes can lead to recalls, fines, and reprints. | Minimal – AI ensures accuracy and compliance, preventing costly errors. |
| Time-to-Market Delays | Slow – manual processes extend product launch timelines. | Fast – AI-driven workflows accelerate approvals and printing. |
| Regulatory Compliance Efforts | High – constant manual updates to comply with evolving regulations. | Efficient – AI continuously updates labeling requirements to maintain compliance. |
| Stakeholder Dependency | Requires multiple external vendors for design and compliance checks. | Reduced – AI automates these processes in-house. |
| Scalability | Limited – manual processes struggle with global expansion. | Seamless – AI enables rapid scaling across regions and product lines. |
By eliminating inefficiencies, AI transforms labeling from a cost center into a strategic advantage, significantly reducing operational expenses.
Kallik's AI-Powered Solution, Veraciti™
Kallik stands at the forefront of AI innovation in labeling and artwork management. Our Assisted Technology of Migration (AToM) revolutionizes the migration process by eliminating human input, thereby reducing errors and expediting timelines. AToM extracts labels regardless of format, producing Intelligent Templates that embed regulatory or brand logic. It establishes a single, reusable system for accurate artwork management and labeling, streamlining complex data into digitized solutions. This “right first time” approach not only maximizes efficiency but provides complete regulatory confidence. This precision not only enhances regulatory confidence but also eliminates the need for manual intervention, saving time and reducing errors throughout the product lifecycle.
Don’t just take our word for it, we recently partnered with a leading American consumer health company to transform their labeling and artwork management processes. By implementing Veraciti, they achieved a 70% reduction in cycle times and a significant improvement in accuracy due to reduced human intervention. This collaboration not only ensured compliance but also accelerated time-to-market, enhancing their competitive position. You can find more case studies here to see how we’re helping some of the world’s biggest manufacturers.
To further enhance quality control, Kallik has partnered with GlobalVision, integrating their AI-powered proofreading tool into our software. This collaboration adds an extra layer of assurance, ensuring that all labeling content is accurate and compliant before reaching the market.
Kallik's innovative approach has garnered attention from industry and political leaders alike. We recently had the honor of hosting Shadow Culture Minister Saqib Bhatti MP at our Solihull headquarters, where we showcased our game-changing AI technology. This visit underscores our commitment to driving innovation and excellence in labeling and artwork management.
Want to Learn More About AI in Labeling?
AI is transforming labeling processes, offering CFOs opportunities to enhance efficiency, reduce costs, and achieve substantial ROI. Kallik's software is at the forefront of this transformation, delivering accuracy, compliance, and speed-to-market for global enterprises. Not sure where to start with assessing your current labeling process? Read our recent blog here. Alternatively, why not speak to one of our labeling and artwork management experts? Get in touch with a Kallik expert today by clicking here, emailing enquiries@kallik.com, or calling +44 (0) 1827 318100.