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Application of Artificial Intelligence in Food and Beverage Industry

The companies have been always looking for new ways to reach and serve the customers while keeping the costs low. Many companies including the food and beverage industry are turning to implement Artificial Intelligence (AI) to achieve better customers’ experience, efficient supply chain management and to achieve the best results in the business.  


The biggest advantage of the application of AI in the food industry is that there would less human errors and the automated process would bring more quality to the product. The ultimate aim would be to serve customers with the best quality services and products. The integration will dramatically reduce human errors and have a positive impact on the front-and-back-end process of the food and beverage industries.


The companies in Consumer Packaged Goods (CPG), food and beverages are benefits a lot by implementing AI and machine learning. The food and beverage industry has been facing a big challenge - consumer expectation. And, the shifting of the consumer from global conglomerate to local is also considered as a major challenge.


Challenges in the food and beverage industry


The multi-billion-dollar food and beverage industry is fast-paced and excessively customer-driven. The challenges are countless as the customer is the king and innovation is the life-line to guard its stand in the market. Unique flavor or taste is the signature for many companies and a big success factor, on the contrary, the swing of consumers’ attention is the biggest threat to the business.  Let’s have a look at some of the major challenges of the industry:


Healthy and Organic foods


Of late, ready-to-eat foods are not in the top list of the supply chain. These foods are losing the customers at a faster rate as consumers are much more aware of their health. The impact is very clear, the demand for such foods is reducing drastically. On the other hand, there is a huge demand for organic and health foods.  The organic rice protein market is likely to touch revenue of USD 105 million by 2024.  

The E-commerce Space


This is a major challenge for the food and beverages industry. Unlike other industries, the growth of e-commerce in this sector has been relatively slow. Despite highly tech-savvy and socially informed consumers, the e-commerce segment is not at a faster pace. Many companies have been investing in the e-commerce platform to ease risk to the supply chain. Many companies need to adopt e-commerce as a major marketing strategy to reach out to customers on digital platforms. Today, sales on direct-to-consumer sites and third-party e-commerce platforms account for 36 percent of specialty food and beverage sales.


Waste Generation


It is the major challenge in the sector. Companies generate ample waster at every stage from top to bottom. The recycling mechanism fails to check the huge wastage of the products and materials. The wastage is having a clear impact on the business process.


Advanced Technology


The industry is facing a major challenge in terms of the implementation of advanced technologies in food processing, canning goods, and packaging products. Technology improvement and automation are highly required to transform the industry.  


Production


Production is another major challenge for the food and beverages industry. Companies have been adopting many strategies to sale up the production.  The implementation of the AI will help these companies to scale up their production to meet the demand. 


Product packaging and tracking system


Packaging it the most crucial factor the companies in the sector. Packaging has been affecting the customers' view in regard to food safety and brand recognition. Any error to change in the packaging could have a direct impact on the foods products as the consumers connect it directly with food safety or brand recognition.


Inventory management & Logistics


The food and beverage industries have been facing challenges in inventory management and logistics. The companies need an application for the perfect inventory management and to streamline the logistics operations.

application of ai in food industry

Application of AI in Food and Beverage Industry


The Artificial Intelligence in Food & Beverages Market is expected to register a CAGR of 28.64%, during the forecast period, 2018 – 2023, according to Mordor Intelligence. The food processing industries are considered as major revenue generating unit in developed and developing economies.  The advent of the Internet of Things (IoT) and robotics in the industrial sector has helped these industries to cut the human error to a significant level and helped to check the redundant processes. Let’s have a look at the implementation of the AI:


Automate Inventory Management: Inventory is the main process in manufacturing as well as other industries. The implementation of AI will not only automate the process but it will ease all the concerns of the F&B retailer. There are fair chances of human error while managing the inventory; the technology will be helpful to deal with every scenario in a smarter way. The machine learning process will detect the stock move and performs the desired action.


Procurement Process: F&B retailers and manufacturing units could use AI and image-recognition technologies in the process for smoother operation. In order to automate the process, employees could take a photo of certain items and activate the automated process for the desired action. The process could be completed in a few minutes which could have taken hours in the manual process.  


Automated Customer Services: Of late, chatbots are being used to interact with the customers and to provide them with efficient services. These chatbots are powered by machine learning and NLP. The implementation of technologies in the CRM will not help the customers in getting the best services but it will also help the companies in managing the customers’ data and to make smarter business decisions.  


Customers Engagement: The implementation of AI in the industry will help the companies to reach to their customers and to understand their purchasing behavior. Accordingly, companies could plan their customer engagement and retain them by providing the best services.


Facial Recognition & Security: Currently, the user of social media are capable to tag their friends, in the process the technology process is capable to identify the person. The same process could be used in the manufacturing units, which will help to identify their employee and grant them certain privileges. This will also work as security mechanism without any human intervention. Similarly, the application will alarm over the entry of an unidentified person or outside to make the security more secure.


Administration Automation: It is highly essential for industries to focus on administrative tasks, which can be automated with the application of technologies. AI implementation will eliminate all the redundancies. It will allow data points to trigger actions, create reports, place orders, dispatch crews, and formulate many tasks and many other tasks.


Companies in the F&B industry could partner with technology providers for the adoption of the right AI technology for the process. A technology like AI is very important and relevant in today’s landscape. Food and Beverage manufacturers take can agile decisions by using the most advanced and available technologies.  


If you have any questions over AI implementation, please do write to us at info@learntechx.com, Learnitude Technologies, an Odoo ERP Development Company, has been helping SMEs, industries, and companies in ERP implementation.


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