Artificial intelligence (AI) is making significant waves in the food and beverage (F&B) industry, as it is in many other industries. AI in the food and beverage business is predicted to increase at a CAGR of 45.77 percent over the next five years, with a market value of $3.07 billion in 2020.
AI’s ability to drive higher efficiency and profits, decrease wastage, and guard against supply chain interruptions is being recognised by an increasing number of companies in the industry. It’s all part of what’s known as Industry 4.0, which refers to the increased adoption of smart technology such as artificial intelligence in conventional industries like food and beverage.
Challenges faced by F&B Industry
Sustainability and local tastes, as well as changes in food and health consciousness, are important to today’s consumer. There is no space for error in the fast-paced, consumer-driven F&B market. The brand’s reputation can be seriously harmed if it is unable to manage food and safety regulatory compliance, inventory stocks, and food quality. AI is not only assisting firms in overcoming these obstacles, but it is also expanding their scope for product creation and enhancement.
Here’s what AI brings to the table
Predicting the sales cycle
F&B businesses have a large number of customers, making it difficult to maintain a positive relationship with everyone. Artificial intelligence can assist food manufacturers, retailers, and restaurants have a better understanding of their customers.
Artificial intelligence in the food sector can keep track of the customers, their preferences, and purchases, all of which are crucial variables for predicting sales. For example, a retailer can have a better understanding of its main customers based on their recurring purchases and hence stock up on inventory. Artificial intelligence takes the past data, processes it with AI-enabled algorithms, and then gives you findings that can anticipate the sales cycle over time.
Know your customers
AI can forecast your customers’ preferences and buying methods. AI tracks customers’ emotions on social media and utilizes natural language processing and data analytics to sort through their posts and label them as positive, negative, or neutral.
Many fast-food restaurants employ AI techniques such as content moderator to assess their customers’ sentiments. The results of these strategies can be used to develop new recipes and food products that best suit the tastes of your clients. Furthermore, such an analysis might give you more insight into how and when you should sell these products.
Businesses in the food and beverage industry frequently struggle to determine which products should be stocked, where they should be stored, and how they should be stored. Retailers can benefit from artificial intelligence since it can provide precise guidance for better market analysis.
Product advertising, social media, consumer demand, market trends, and even the weather are all aspects that AI-powered algorithms learn from. Consumer behaviour is likely to be influenced by these factors. As a result of applying AI, a business may be confident in stocking the products that are in high demand, as well as how they can be delivered at the last minute if demand increases.
Increased data and analytics are the key advantages of employing AI. This helps manufacturers understand inventory difficulties, while data may be utilised to develop pricing and inventory predictions for more accurate forecasting using machine learning.
Improving supply chain
For food and beverage businesses, supply chain management is an ongoing battle. Food safety regulations are becoming more stringent, necessitating complete transparency in the supply chain management of food and beverage businesses. The need to track the data-driven supply chain is critical, and AI can assist by offering new supply chain insights to stay ahead of the game.
AI can assist in the tracking of food and beverage across the whole supply chain, from the farm to the manufacturer, distributor, and retailer. This allows food and beverage distributors to be more transparent with their customers. AI has a lot of potential to enhance the food and beverage supply chain. AI can not only make items more traceable and provide more data to estimate supply and demand, but it can also make food consumption safer on a worldwide scale by detecting anomalies. AI can also be used to make judgments about supply chain operations.
Quality assurance sorting
Sorting is one of the most time-consuming steps in the manufacturing process. Sorting potatoes by size, for example, can assist manufacturers in determining which ones to utilise for French fries or hash browns. Sorting out off-colour tomatoes will also assist reduce retailer rejections, as all food items and products must be sorted.
Sorting can be simplified by artificial intelligence. This procedure is automated using AI, which employs a machine learning-powered sensor-based optical sorting approach. As a result, businesses spend less hours sorting while reaping the benefits of increased yields, decreased waste, and, of course, improved quality. Many food processing devices already use artificial intelligence (AI) to categorise foods or aid in co-manufacturing.
AI has a lot of potential for expanding its reach, making advanced recommendations, developing new products, improving user engagement, and, most crucially, increasing efficiency. It’s high time for food and beverage companies to embrace AI and realise its benefits.
Views expressed above are the author’s own.
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