Discover how to successfully implement Generative AI in your organization.
Chemical Manufacturing
August 13, 2024
Artificial intelligence (AI) emerging in the chemical industry is now a reality — one that was only inevitable. As you read this, AI is unfolding new opportunities for chemical companies to streamline their processes and level up their technical sales teams. While technical sales is a standout point of change, advanced machine learning systems improve efficiency and accuracy in countless applications for chemicals and materials.
Over the past decade, the chemical sector has seen a rapid evolution in AI adoption, moving from Industry 4.0 techstacks to sophisticated generative AI systems capable of recommending detailed product formulations with the click of a button. As more chemical companies look for ways to stand out in this complex and competitive market, generative AI is reshaping everything from laboratory research and chemical engineering to technical sales and customer support.
In this guide, chemical technology specialists at Nesh address specific types of chemical companies and how they’re using AI to support the sales process from beginning to end. More importantly, we consider potential outcomes for your company’s future in the chemical industry moving forward.
If you’re new to the idea of AI in chemicals, here’s the gist. Generative AI (genAI) is a form of artificial intelligence that generates new data or content by learning patterns from existing datasets. It stands out from other AI technology by proactively using large language models to create new data and communicate via natural language with humans, rather than just analyzing and reacting to existing information. It moves beyond mere insights to actively generate innovative solutions and processes and dynanically change change into something new.
A standout component of generative AI is Retrieval-Augmented Generation (RAG). Instead of relying solely on large open sources of data, RAG integrates specified, closed-source knowledge. RAG combines the strengths of large language models with structured retrieval processes, resulting in accurate and contextually relevant information. For example, taking a GenAI approach with RAG allows platforms with solutions like Nesh's AI agents to deliver comprehensive workflows tailored to industry needs, such as developing more eco-friendly chemicals or optimizing supply chain operations. It does this by leveraging data from the assigned sources — such as your company’s sales software, product catalogs, SOPs, technical handbooks, and more.
Importantly, generative AI empowers chemical companies to address deeply specific challenges that are unique to their processes, customers, and products. Compared to other AI-supported tech that came before, genAI holds a world of potential for workers in the chemical industry.
Some of the biggest transformations generative AI is having on the chemical industry are through sales and sustainability.
When it comes to sales, platforms like Nesh provide technical sales teams with specific insights into customer behavior and preferences so that they can implement more effective sales strategies that accelerate deal cycles and drive revenue growth. This also applies to customer management where genAI can use CRM insights and internal product data to help sales reps predict customer needs and offer tailored product solutions.
Then, there are product portfolios. Generative AI technology accelerates the go-to-market activies of new, innovative products, helping companies stay competitive as the market and customer needs evolve. Additionally, generative AI supports Environmental, Social, and Governance (ESG) initiatives (more on this later).
While generative AI's ability to generate new data and solutions positions it as a pivotal tool, it also addresses internal challenges — particularly for technical sales teams who must constantly adapt to new products and regulations.
Want to learn more about the potential of GenAI in chemical sales?
Here are 4 Ways to Accelerate Your Technical Sales Cycle With AI.
According to a Research and Markets report from May 2024, the market for AI systems in the chemical industries is projected to reach $3.8 billion in the next five years. This is good news for technical sales teams facing unique challenges that require innovative solutions. But to effectively overcome these challenges with the help of AI, sales teams must prepare for a major shift.
The specialty chemicals industry is at a pivoting point. It’s currently driven by increasing ESG pressures, an overwhelming growth in product portfolios, hyper-niched market demands, and competitive pricing in the global marketplace. Sales teams have to harness a thorough understanding of products, trends, processes, and customer needs to be competive. The expectations are endless.
Generative AI platforms help chemical companies adapt to rapid change by quickly accessing and synthesizing complex information, enabling sales teams to respond effectively to whatever comes their way.
For example:
Generative AI helps sales teams stay informed and agile, addressing these challenges in real-time. It supports quick knowledge transfer and equips teams with the insights they need to navigate the evolving industry so that they remain competitive and responsive.
As experts in the chemical field retire, specialty chemical companies need a way to preserve and transfer decades of expertise and experience to newer team members. Otherwise, this knowledge gap can negatively impact sales performance and client relationships.
Generative AI + RAG systems bridge this gap by storing expert knowledge and digital assets, making it easily accessible for both new and existing team members. This technology facilitates faster onboarding and reduces ramp-up time for new hires, making sure they are all well-equipped to handle complex person-to-person interactions.
By leveraging AI-powered knowledge management systems, chemical sales teams keep the funnel flowing and deliver customer satisfaction. This approach not only bridges the knowledge gap but also enhances overall team efficiency and effectiveness, as detailed in our blog, Ramp New Technical Sales Reps with GenAI.
Another challenge that arises as experts retire is the demographic shift underway in the chemicals space. How do companies with younger, newer, and more digitally savvy sales employees prepare for success?
Address the consequences of demographic shift:
Generative AI helps bridge this generational gap by combining the deep industry knowledge of experienced professionals with the digital fluency of younger team members. This fosters a collaborative and transparent sales process, leveraging the strengths of both generations to enhance team performance and adaptability.
For more insights on this issue, see Overcoming the Changing Demographics of Specialty Chemical Experts.
If you implement AI now to overcome knowledge transfer roadblocks and rapid industry change, your technical sales representatives will gain access to strategic technical tools that put your company ahead of those who aren’t prepared.
AI streamlines the sales process by automating routine tasks, equipping teams to 10x the sales process:
By automating some of the most critical selling tasks, GenAI equips sales teams to focus on strategies that build the company. This includes locating and summarizing up-to-date product messaging, comparing your company’s products with competitor products, identifying products that fit specific use cases, and gaining an honest look into customer pain points. Through these sales-specific capabilities, AI empowers chemical sales teams to operate more efficiently, leading to improved business outcomes.
Solutions like Nesh integrate multiple business processes to create a more cohesive workflow. In product development, AI pinpoints different ways to refine formulation processes and control production variables. In technical sales, AI guides technical support teams through customers' product evaluation, preparing them with accurate product training and supporting critical sales activities like pre-call planning.
GenAI also plays a crucial role in troubleshooting applications, providing quick answers to customer’s engineering concerns. If a customer needs help reformulating a product, GenAI solutions like Nesh can guide sales reps toward uncovering the best comprehensive solution for their customer. This streamlined access to data ensures that chemical companies can respond swiftly to market demands while maintaining high standards of safety and compliance.
AI is essential in driving ESG (Environmental, Social, and Governance) and sustainability initiatives within the chemical industry. It supports companies in several key areas.
As a leader in AI solutions for specialty chemicals, the Nesh platform was developed to help technical sales teams identify sustainable product alternatives within a company's portfolio and support customers transitioning to cleaner options. Nesh also aids sales representatives in maintaining consistent messaging on sustainability products so that they effectively communicate the benefits of alternative, more sustainable materials.
Learn more about GenAI at the forefront of sustainability in chemicals: The Future of Chemical Sales: Generative AI and the Sustainable Product Portfolio
Now that we know the many benefits of AI in chemicals and materials, let’s look at how it can be applied to various industrial use cases.
Technical sales teams in paints and coatings must navigate complex regulatory environments — such as those involving volatile organic compounds (VOCs) and greenhouse gas emissions. Now more than ever, paints and coatings sales reps are being asked for sustainable product alternatives.
AI technology addresses these concerns while managing rising raw material costs, suggesting optimal procurement strategies and cost-effective formulations. Furthermore, AI augments the customer experience through personalized product recommendations based on relevant insights into customer behavior and preferences. Nesh, for example, empowers sales reps to act as trusted advisors to their customer’s procurement and engineering teams, helping customers transition to eco-friendly paints and coatings while maintaining high-performance standards.
Want to go more in-depth about Paints & Coatings? Read our recent article: Generative AI in the Chemical Industry: Transforming Sales for Paints and Coatings
In the chemical industry's catalyst sector, genAI helps sales reps navigate regulatory changes and customer needs. By automating tasks and analyzing data, Nesh AI accelerates deal cycles, enabling faster responses and better decision-making.
Catalyst sales teams can also use AI to identify potential customers and calculate ideal product recommendations to align with their sustainability goals. More importantly, genAI aids in competitive benchmarking, positioning products effectively by highlighting their unique benefits and environmental advantages.
Read more about GenAI solutions for catalyst companies on the Nesh blog: Generative AI in the Chemical Industry: Catalysts
Chemical testing processes require precise, specialized machinery for processes spanning verticals like water, food & beverage, environmental sciences, life sciences, pharmaceuticals, and personal care. Each unique peice of chemical testing equipment supports critical end processes that ensure a product is safety, regulatory, or quality requirements.
The chemical testing equipment industry rely on AI to support technological innovation and advancement, building tailored solutions for the needs of each customer, and optimizing offering that support customer sustainability or ESG goals.
Sales reps rely on GenAI solutions like Nesh to better understand the end applications of the testing equipment they sell, enhance customer engagement, sell more effectively, and align on the market priorities and equipment messaging of their company.
Read more about GenAI solutions for chemical testing equipment companies on the Nesh blog: Generative AI in the Chemical Industry: Chemical Testing Equipment
The textiles and dyes sector is rapidly embracing ESG principles and aiming to achieve a more circular economy. AI enhances textile color formulation and matching, revealing precise results while suggesting alternative products when necessary. Sales reps use GenAI to craft messaging and educate customers on details regarding dye performance on various fabrics, optimizing dyeing processes for sustainability, and proposing alternative dye chemicals to reduce environmental impact.
AI also helps techncal services aid their customers in the development of innovative textile treatments using new chemical products, helping to mitigate one of the biggest harms of textile production: excess waste and pollution. By educating customers on sustainable practices, AI supports the industry's transition to more eco-friendly solutions.
Want to go more in-depth about Textile Dyes and Pigments? Read our recent article: Generative AI in the Chemical Industry: Textile Dyes and Pigments
Generative AI is revolutionizing personal care chemical manufacturing by enabling agility in an industry marked by tight regulations and intense competition. With the personal care market forecasted to surpass $1.15 trillion by 2034, consumer expectations around product safety, sustainability, and personalization are pushing manufacturers to innovate at every step—from sourcing raw materials to enhancing customer interactions.
AI tools offer support for navigating supply chain shifts, meeting compliance standards, and aligning product portfolios with customer values and sustainability goals. Sales teams benefit from AI-driven insights, enabling them to provide quick, personalized recommendations, improving customer engagement and helping brands stand out in a crowded market.
Want to go more in-depth about Personal Care? Read our recent article: Generative AI in the Chemical Industry: Personal Care Product Manufacturing
In 2023, the U.S. Food and Drug Administration (FDA) established a Digital Health Advisory Committee to ensure responsible, safe use of technologies like AI in medicine and food production. This marks the beginning of evolving standards and regulations in the life sciences sector.
AI is crucial for discovery and development, playing a significant role in pharmaceutical manufacturing processes and identifying drug interactions and side effects. Chemical companies involved in life science need AI solutions that secure chemical product requirements across niches like marine life, biotech, food, and biopharma. Innovative companies are currently proving AI's role in enhancing quality and compliance. As AI continues to advance, it will play an increasingly vital role in transforming life sciences.
Can chemical companies rely on the help of AI when formulating feed products for human or animal consumption? While no AI system is infallible, an intelligent, RAG-based solution is ideal for bringing together multiple sources of secured data for improved decision-making.
GenAI solutions support the development and go-to-market activities of sustainable feed solutions and calculated nutrition plans for different species, encouraging precise dietary requirements to be met. In technical sales, AI conducts product comparisons so employees can make sure chemicals comply with regulatory standards. Technical sales and services rely on GenAI to quickly troubleshoot customer issues and find the right feed additives.
One of the main ways AI brings solutions to paper and pulp companies is by helping chemical companies collaborate with their customers on ways to reduce waste in their paper & pulp production process. Sales reps use GenAI to reveal more sustainable product solutions and more responsible waste removal methods. Customers see enhanced paper quality and consistency with more tailored product recommendations.
According to the American Forest & Paper Association, advanced, efficient technology solutions like AI continue to make the paper industry more eco-friendly. In addition to recommending more sustainable materials and chemicals used in production, AI enables predictive maintenance for paper mills to keep up with operations. AI-driven supplier management and customer relations improve service and support. By integrating these capabilities, AI empowers paper and pulp companies to meet sustainability goals, further enhance product quality, and maintain strong customer relationships.
In the production of adhesives, companies rely on critical information to delegate raw material selection, safe curing processes, and precise sales partnerships. Sales and service reps use AI to streamline product recommendations based on predicted performance in various conditions.
GenAI applications equip sales reps to suggest products that support the development of sustainable and bio-based adhesives. AI could also instruct more responsible and effective curing processes and help technical sales reps assist a customer’s engineers as they evaluate products or troubleshoot application issues.
In the cleaning products industry, chemical companies play a crucial role by supplying the chemicals used in manufacturing eco-friendly solutions. AI aids in evaluating cleaning efficacy across various surfaces, allowing sales and service reps to explain and position specialized product recommendations for ideal formulations.
In cleaning chemical manufacturing, genAI technology helps formulators ensure that products meet regulatory requirements so that manufacturers maintain compliance. By supporting the development of innovative formulations, sustainable practices, and sales cycles, AI equips these companies to offer high-quality, environmentally friendly cleaning products that meet consumer demands and regulatory standards.
Supporting sales, sustainability, and customers are the three common solutions AI promises chemical companies. Implementing AI for your chemicals and materials company involves first choosing the right systems.
To do this, start by making sure it properly integrates with your company’s technologies that are currently in place. These include:
Second, effective data management and quality assurance are required for AI agents to deliver reliable and up-to-date insights. Training and upskilling sales teams will reduce ramp time, enabling them to leverage AI tools effectively and focus on building strong customer relationships.
Addressing potential team challenges and resistance to new technology is also important to encourage buy-in across the company. Your business must communicate the benefits of AI adoption, such as improved efficiency and enhanced customer support. By embracing AI, your chemical company can enhance your sales processes, accelerate deal cycles, streamline customer support, and maintain a competitive edge in the industry. Ultimately, AI supports activities grow topline revenue.
Take our step-by-step journey through AI implementation here: The Buyer’s Guide to Choosing the Right GenAI Solution for Chemical Companies
The future of AI in the chemical sector is here — and it’s highlighting a whole new level of potential for brands around the world.
The chemical industry is quickly growing, driven in part by AI's ability to generate innovation and streamline processes. By adoptiong Generative AI, your company can:
As companies like Nesh continue to develop AI-driven solutions, these technologies are set to become not a luxury but a necessary tool for growth. As the landscape evolves, staying ahead and informed about emerging technologies is crucial for leveraging AI's full potential in chemicals.
Generative AI is the new competitive advantage in the chemicals industry, with its process optimization, product innovation, and customer support capabilities.
To leverage these incredible opportunities, start integrating them into your operations now. Discover how Nesh can support your chemical company through its next phase of growth. Reach out to our team to discuss the right solution for yours.
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Discover how to successfully implement Generative AI in your organization.
Check out these four technical sales use cases for GenAI in Chemical Manufacturing.
Choosing the right Generative AI solution for your chemical company can be difficult. Discover how to make the best choice with our guide.
