By: Anita Beveridge-Raffo
The food and beverage sector is making waves with its use of AI technology. In 2024 alone, companies are projected to spend nearly $12 billion on AI. This investment aims to streamline supply chains, ensure safety, and meet the growing global demand for food. By 2030, spending in this area could soar to over $85 billion, as reported by Grand View Research.
The Shift in AI Use
Brands are increasingly focused on how to harness AI for both growth and efficiency. They’re asking, “How can we boost sales while cutting costs?” Today, AI isn’t just automating physical tasks like sorting and packing. It’s also enhancing data analysis and strategic planning. Companies are now deploying AI systems that analyze every product individually, linking operations across departments to create smoother workflows.
Automating with Human Oversight
Companies are realizing that AI needs to be flexible. Instead of merely providing data, AI systems must also execute tasks. Over the past few years, food manufacturers have implemented machine learning models to optimize logistics. However, they often find that by the time these plans are ready, they’re outdated. This happens because humans frequently need to manually transfer data between systems, leading to delays.
Currently, brands are exploring chained AI agents and APIs to handle these tasks, reducing the time it takes to update logistical plans. These agents can trigger actions based on real-time data without needing human prompts, although human oversight remains essential.
Granular Data Insights
More brands now focus on data at the SKU level rather than in broad categories. For example, Anheuser-Busch can track sales of individual cans versus six-packs in specific regions. This approach harkens back to earlier supply chain strategies before companies grew too large to maintain such detail. With scalable AI models, brands can gain deep insights that lead to better marketing and promotional strategies.
Cross-Departmental Collaboration
As brands adopt AI, they’re starting to break down silos that often hinder supply chain efficiency. By integrating sales data with promotional planning, AI encourages collaboration across various departments. This is crucial as consumer preferences shift quickly. Factors like rising prices or dietary changes, influenced by popular medications such as GLP-1 drugs, have transformed shopping habits. Companies need to grasp these trends to stay ahead.
The push for AI adoption is gaining momentum. Moving forward, businesses that embrace automated AI processes, granular data, and comprehensive integration across departments are set to become more resilient and efficient. However, achieving this kind of cohesive approach requires visionary leadership that looks at the company as a whole, rather than just focusing on isolated issues like supply chains.
As AI transforms the food and beverage industry, brands must adapt swiftly to remain competitive. The journey toward automation and detailed analysis is imperative for future-ready businesses, necessitating a cultural shift that promotes unity and collaboration across all levels.
Anita Beveridge-Raffo is a lead deployment strategist at Palantir Technologies, where she has driven technical deployments since 2015, focusing on retail and consumer goods.
