P&G CEO says AI will help improve products, not justify price hikes

In short: Procter & Gamble’s new CEO says the company is being careful about price increases and is using AI to help teams improve products faster.

What happened

Shailesh Jejurikar became CEO of Procter & Gamble in January 2026. In an interview with The New York Times, he described a tough moment for big consumer brands, with shoppers tired of inflation and more people choosing cheaper store brands.

Jejurikar said P&G does not treat every increase in costs as an automatic reason to raise prices. Costs have gone up for reasons like tariffs (taxes on imported goods) and energy. P&G said it looks at what shoppers can afford and whether the product’s benefits make a higher price feel worth it.

He also pointed to “productivity,” meaning getting more done with the same resources, and to improving products. P&G has raised prices in recent years to cover some higher costs, but the company faces the risk that shoppers will switch to lower-priced options if they do not see enough value.

On AI, Jejurikar said P&G is using it together with the company’s data to spot consumer needs and develop products. AI, which is software that can find patterns and generate suggestions, may help speed up the search for new ingredients and formulas for items like detergents and hair care (like having a faster assistant for testing recipe ideas).

Why it matters

Many households buy P&G brands regularly, from cleaning products to personal care items. How P&G decides between raising prices and cutting internal costs can affect what people pay at the store. The interview also suggests AI is becoming a behind-the-scenes tool in everyday products, but there is no promise it will lower prices by itself.

Source: NYTimes