The Implications of Coca-Cola's Generative AI Experiments on the Brand's Future

The Implications of Coca-Cola's Generative AI Experiments on the Brand's Future

Coca-Cola's groundbreaking generative AI experiments, discussed by Selman Careaga, President of the global category, showcase the brand's innovative approach in harnessing artificial and human intelligence for enhanced personalization and marketing strategies

Since the launch of OpenAI's ChatGPT, generative AI has been a hot topic in advertising, technology, and culture. Coca-Cola has been a prominent leader in the use of this technology, implementing it in various ways to create successful campaigns. This has set a standard for other brands to follow in the coming years. In early 2023, while many brands were still observing the AI trend, Coca-Cola seized the opportunity to partner with management consultancy Bain & Company and OpenAI to introduce its "Create Real Magic" platform. Since then, the company has utilized generative AI for various digital and experiential channels, including a recent campaign tied to the Las Vegas Sphere.

Our website interviewed Selman Careaga, the president of the global Coca-Cola category, to discuss the soft drink giant's partnership ecosystem, the recent launch of the AI-assisted Y3000 flavor as part of Coke's Creations platform for limited-run products, and the company's use of generative AI for consumer-facing and internal tasks. The following interview has been condensed for brevity and clarity.

Coca-Cola was the inaugural company to enroll in the Bain-OpenAI offering. How has this partnership influenced your work this year and how does it integrate with your other partners and agencies?

SELMAN CAREAGA: It's a collaborative effort. We work with a range of agencies and partners, rather than aligning with just one. The lines are blurred now. Bain is a consulting firm, OpenAI is a technology trailblazer, and WPP agencies are also pushing boundaries in the digital realm.

We have formed an ecosystem of partners to drive progress, focusing on creating platform-based solutions rather than the traditional approach of working with a single agency to develop a platform over several months. Today's world allows for more flexibility in this regard.

Our initial project, "Create Real Magic," in collaboration with Bain and OpenAI, yielded impressive results. Over 120,000 pieces of content were generated and users engaged with the platform for over seven minutes on average. Building on this success, we identified the top 20 creators from the platform and convened with them at the Real Magic Academy to explore ways to enhance our future endeavors.

The Implications of Coca-Cola's Generative AI Experiments on the Brand's Future

One of Coke’s iconic polar bears, created with generative AI

Courtesy of Coca-Cola

 

How did Coke’s AI experiments come together in the Christmas campaign?

CAREAGA: The current Christmas campaign is the culmination of our learnings on the platform, particularly regarding how people can have a more engaging and simplified interaction. We have created a much more user-friendly platform for people to create and share Christmas cards with their loved ones using Bain and OpenAI.

We primarily partner with WPP when considering our agency ecosystem. The "the world needs more Santas" Christmas idea originated from our collaboration with WPP, particularly VMLY&R, within their agency network. We have a video content piece and are developing two short films for streaming, as we have recognized the importance of connecting with people through streaming. Additionally, we are exploring the impact of generative AI on Coke's approach to creators at the Real Magic Academy.

CAREAGA: We begin by consulting with the experts to understand how they utilize the technology and interact with Coca-Cola's assets. From there, we work on transforming the technology into a more widespread, scalable experience, as we have done with Christmas. We don't view AI as a complete replacement for human intelligence, but rather as a tool to obtain quicker and more accurate insights. We believe that the human intelligence component is essential, and consider it to be just as important as AI.

In what ways is generative AI assisting Coke in achieving personalized scale?

CAREAGA: In the past, we would create content or ads and hope people liked it. But now, with examples like the Christmas card, we have a two-way interaction that allows people to engage with iconic brands like Coca-Cola in new and highly scalable ways. It's a big shift from how we used to do things, especially during the Christmas season.

No matter what we do, we always uphold the values that Coca-Cola has stood by for its 137 years - authenticity, optimism, and uplifting moments of happiness. Whether it's a tool, technology, or experience, it must align with these brand values. Moving forward, we'll continue to honor these values while also exploring and learning from new technologies.

I'd like to hear more about the involvement of AI in the launch of Y3000.

CAREAGA: Y3000 is the eighth iteration of Coca-Cola Creations. With Creations, the focus is on creating experiences that bridge the digital and live worlds, rather than just introducing a new product or limited-time offer on the shelf.

It takes a significant amount of time for us to develop a new formula. We began exploring the use of AI long before it became a popular topic, aiming to utilize AI and human intelligence to understand people's visions of the future, including emotions, colors, flavors, and tastes. After gaining these insights, we collaborated with our R&D team to create the Y3000 formula.

Upon the product's release, the Sphere presented a unique opportunity to leverage the most innovative out-of-home space available in the world. This allowed for the creation of captivating visuals and provided individuals with the opportunity to interact with our Y3000 platform via a QR code, generating a high level of engagement.

How will Coca-Cola incorporate AI into both internal and external marketing strategies in the future?

CAREAGA: We're approaching it from all angles, from creating content geared towards consumers such as Y3000 and Create Real Magic, to leveraging AI within our internal design processes for better insights and improved resource efficiency. AI serves as a complementary tool alongside our human insights team, allowing for the generation of more relevant ideas and strategies.

Our team now has a deeper understanding of our partners and how to effectively navigate all things AI. This new capability promotes collaboration and allows us to build stronger connections. As long as we can deliver engaging experiences and enhance our brands, we will keep utilizing this tool. If it helps us work faster and gain even better insights, we have every intention of continuing its use.