Top 5 Ways Artificial Intelligence is Impacting the Food Industry

Artificial Intelligence (AI) is a wide-ranging branch of computer science that has the power to revolutionise the way we live. Its impact on the food and beverage industry is powerful too, and in recent years many leading food manufacturers have invested in a suite of technologies which improve food safety, reduce waste and increase their profits. Here we outline the top 5 ways AI can help grow and improve the food industry today.

1. Demand Planning and ERP

A well managed and efficient supply chain can reduce purchasing and production expenses and can play an important role in improving customer satisfaction. Today intelligent demand planning and ERP (Enterprise Resource Planning) software can provide a complete view of all products and all ingredients, all of the time. The software, powered by machine learning (a subset of AI), works by combining all data relating to a supply chain — behavioral data, weather, macroeconomic indicators, social media signals (retweets, shares, spikes in followers), to deliver accurate AI-driven demand predictions for food and beverage manufacturers.

2. Waste Reduction

The power of AI can also be seen in food and beverage waste reduction. AI tools employ real-time monitoring to identify anomalies as soon as they occur. According to McKinsey, “AI can also help farmers at the outset by designing out avoidable food waste and preventing edible food from being thrown away. Farm-based food supply chains can become more efficient using visual imagery technology during food inspections. AI-enabled tracking can help retailers sell food before it goes bad, and AI algorithms can forecast and predict sales to allow restaurants and retailers to more effectively connect supply to demand when ordering food, thereby reducing avoidable food waste. By using these techniques to design out food waste, we found that AI can generate an estimated economic opportunity of up to $127 billion a year in 2030, calculated as growth in top-line revenue”. According to the United Nations, one-third of all global food is lost or wasted each year, so it’s certainly important to turn to the power of AI to make a serious change. 

3. Food Safety 

Food safety is undoubtedly a public health priority. According to the World Health Organization, 600 million people (almost 1 in 10) fall sick each year after eating contaminated food, which results in approximately 420,000 deaths worldwide. In response, in September 2020, the FDA presented its FSMA Proposed Rule for Food Traceability, a 55-page document which hopes to standardize traceability practices for foods which are considered high risk. To meet these demands, food and beverage manufacturers are again turning to the power of AI. Traceability software, powered by AI, can track all products from ‘farm-to-fork’; providing total transparency to all businesses who invest in the technology. 

4. Production Efficiencies

Artificial Intelligence and can also streamline food and beverage production and reveal the best manufacturing practices in order to meet operational KPIs. For example, ML algorithms in food manufacturing software can predict and identify production bottlenecks before they become a logistical issue. 

5. Packaging 

Recently AI has helped Amazon deliver sustainable packaging. AI applications have led to Amazon experiencing a 33% reduction in their packaging requirements over the last 5 years, which equates to them having used 1.6 billion fewer shipping boxes. They used a cloud-based machine learning app, which automated the process of optimising packaging choices, thereby saving 915,000 tons of packaging. Furthermore, Artificial intelligence-driven robotics are having a huge impact in warehouses and factories, as advanced AI robots work side-by-side with human operatives to ‘pick and pack’.

The increased adoption of AI across the food and beverage industry over the next decade will undoubtedly strengthen the industry, reduce waste, and improve food safety. If you want to gain a stronger grip on the demand planning side of your enterprise, get in touch with Cashmere today. Our inventory and order management software, purchasing software, demand planning software, and advanced ERP solutions are powered by AI and serve leading F&B clients around the world.