Hershey Expands AI Across Supply Chain, Marketing Ahead of 2027 Recovery

The Hershey Company said it is expanding the use of AI systems across its supply chain, marketing, and manufacturing operations as part of a plan to recover margins by 2027 after cost pressure linked to cocoa prices. The company outlined the strategy during its April 1 Investor Day, positioning AI-driven systems as a core part of its operating model.

Hershey said it is deploying decision intelligence tools to automate supply chain responses across production and inventory planning. It said these systems are expected to generate about $50 million in productivity gains and reduce inventory by $100 million over two years.

The company said it is introducing “Connected Worker” tools and digitally integrated factory systems to support manufacturing and labor efficiency. These systems are designed to improve production visibility and consistency across facilities.

In marketing, Hershey said AI-enabled tools have reduced the cost of producing creative assets by 50%. It said these tools have shortened development timelines from months to weeks and allow campaigns to be deployed across multiple markets within days.