Next-gen PIM: AI, digital product passport & EU regulatory readiness

How PIM is redefining what businesses must do to achieve sustainable practices and growth.

As businesses look ahead, three key topics are at the forefront: EU documentation requirements relating to Environmental, Social, and Governance (ESG) compliance, the EU’s Digital Product Passport (DPP), and the growing importance of enhancing customer lifetime value (CLV). Combined with the transformative role of AI in data handling and content generation, and the scalability of cloud-based solutions, these trends are reshaping the use of PIM systems.

EU regulations: ESG and the digital product passport

ESG Compliance and the Packaging Directive (PPWR)

The Environmental part of the ESG criteria is getting more attention due to the European Union’s updated Packaging and Packaging Waste Regulation (PPWR). This regulation marks a significant move towards sustainability and responsibility in packaging practices. Under the PPWR, companies must carefully track and report detailed information about their packaging throughout the entire supply chain. This includes not only primary packaging (the material that directly holds the product) but also secondary packaging (the outer packaging that groups products) and tertiary packaging (the bulk packaging used for transport). The requirement to oversee all these aspects, from production to the end of the product’s life, ensures that businesses are not just following rules but also practicing responsible packaging.

A PIM system makes it much easier for businesses to stay compliant with these new regulations. For example, a PIM system can store crucial data on the exact amount of packaging used for each product, detailing the materials involved and their recyclability. This organized approach helps companies meet the PPWR’s transparency requirements and gain a better understanding of their packaging impact. Having all this data in one place allows businesses to comply with regulations more easily, avoiding fines for non-compliance. It also simplifies the process of creating compliance reports, making audits and inspections a much easier feat.

The digital product passport: traceability from start to finish

The concept of the DPP is poised to transform how we think about product traceability. Initially focusing on batteries, the DPP will soon expand to include textiles and other product categories, requiring detailed traceability from the beginning of the production process to the product’s end-of-life.

Battery as an example: every detail, from its raw material sourcing to its production, use, and recycling, must be documented in a central repository. This repository is where PIM solutions can help. By integrating data into a digital depository, PIM systems provide a central platform where information such as product barcodes, composition, and recycling instructions can be stored, updated, and accessed as needed.

This centralized data management not only helps ensure compliance but also supports business-to-business and business-to-consumer transparency. Customers are increasingly interested in the environmental impact of the products they buy, and the DPP allows companies to share this information in a reliable, verifiable way. With PIM systems facilitating this end-to-end traceability, companies can transform regulatory requirements into competitive advantages by building stronger relationships with sustainability-conscious consumers.

Cloud-based solutions

The transition to cloud-based PIM systems is accelerating, driven by the demand for greater flexibility, scalability, and collaboration. These solutions allow businesses to access their PIM platforms from anywhere, enabling real-time updates and seamless coordination across distributed teams.

Cloud-native PIM systems also simplify integration with other tools and technologies, such as ERP systems, e-commerce platforms, and AI-driven analytics. This compatibility ensures that businesses can maintain a cohesive digital ecosystem, even as they adopt new innovations.

Customer lifetime value

Building long-term relationships enhancing CLV has become a pivotal focus for businesses aiming to drive growth and profitability. PIM systems play a crucial role in delivering personalized and consistent experiences across all customer touchpoints.

PIM systems contribute to CLV by enabling dynamic product recommendations and intelligent bundling based on customer behavior and purchase history. By leveraging AI-driven insights, businesses can tailor their offerings to meet the unique needs of each customer, increasing retention rates and encouraging repeat purchases.

Additionally, PIM systems support ecosystem consistency, ensuring that customers receive accurate and up-to-date product information whether they’re shopping online, in-store, or through mobile applications.

AI in PIM: from data production to intelligent management

AI as a First-Mover in Data Structuring

AI’s potential in the PIM space is enormous, particularly when it comes to dealing with unstructured data. Traditionally, product data collection has been a labor-intensive task — pulling information from various sources, formatting it correctly, and entering it into the PIM system. With AI, this process can be largely automated.

AI algorithms can gather unstructured data, classify it, and structure it appropriately, making PIM systems smarter and more efficient. A company might have dozens of similar products that need classification according to industry standards. Rather than manually entering these categories, AI can compare product attributes and automatically suggest classifications.

Shifting roles: from data producers to controllers

Another key trend in AI is its role in content generation. AI can draft marketing texts, generate descriptions, and even provide translations — tasks that used to take up a significant amount of a marketer’s or product manager’s time. Rather than spending hours generating product details, these professionals will be focused on reviewing AI outputs, ensuring compliance, and optimizing messaging. This evolution has the potential to create massive efficiency gains and free up resources for strategic activities.

Comparative analysis and smart recommendations

Additionally, AI can compare the product data stored in a PIM system against competitors or similar items in the market, suggesting enhancements to descriptions, features, or even pricing strategies. Such insights can help companies stay competitive without having to manually comb through thousands of competitor products.

The road ahead: stay compliant, cloud-ready and competitive

PIM systems are evolving into essential tools that do far more than store product information. The dual forces of compliance requirements and technological advancements are pushing companies toward greater transparency and market responsiveness. EU regulations like ESG documentation and DPP implementation are certainly challenging, but they also provide an opportunity for businesses to distinguish themselves in the eyes of increasingly discerning consumers.

Interested in how PIM can help your business meet upcoming EU regulations and take advantage of AI? Read the white paper Next-Gen PIM: AI, Digital Product Passport & EU Regulatory Readiness by Boyum IT to learn more.

Antonia Chausheva, Head of Growth at Boyum IT

Antonia has a strong background in Product Information Management systems, supporting business growth by optimising processes and improving overall efficiency.

Contact Antonia at [email protected]