The future of world economy is dependent on Artificial Intelligence (AI) – a significant catalyst for development. The overall market for AI is anticipated to grow to $5.05 billion by 2020. That is why almost every industry is trying the catch up the sphere, so as the food industry. Food industries can leverage AI to improve their operations and deliver a better customer experience.
Till date, we have this misconception or idea that food industries cannot be so advanced in terms of AI but now they’re starting to anticipate the value AI adoption in their supply chain planning processes.
For food industries, AI is improving the overall production and manufacturing process. For example, sorting of products or packages, food safety compliance, Improved sanitation, Produce development and improved marketing. With most food industries, having hundreds of customers and products to deal with on a daily basis, AI may become a feasible alternative (or augmentation) to human expertise.
Food industries are following the AI trail
The obvious benefits of Artificial Intelligence over humans is reflective efficiency and speed. Latest news updates suggest that food manufacturing industry can be one of the most pretentious sectors with AI technologies implementation. Already most of the companies have joined the race and started to make best of the initial wave by venturing in this direction.
With most food manufacturers and retailers, AI is proving much more efficient results at unscrambling complex data quickly and meaningfully. One of the biggest growth areas where AI can make a major difference is in ‘Intelligent Forecasting Systems’. Before this, most of the retailers or food manufacturing companies were only able to predict roughly the total quantities of products to order to keep stocks, inventory levels and historical sales data (usually looking for data of a few years, at best). Now a day, AI can forecast a much more accurate picture of exactly what types of products to sell, by looking at multiple setups in real time and fetching data from the internet. This means forecasting is no longer so much of stab in the dark or guesswork.
And that’s where Artificial Intelligence comes in picture. AI depends upon a continual process of scientific learning from experience and gets better with time answering complex questions. AI-powered algorithms acquire information from multiple factors that are likely to influence consumer behavior – including product promotions, social media channels, or the weather. Not only this, Artificial Intelligence technology know when stocks are going to be empty, but more importantly, they can also predict what will happen next. This means wasting of stocks and waste (or discounting) can be minimized.
Now a day, many retailers are dependent on promotions of their multiple products by dedicating between 20 to 30 percent of their total sales – to know which promotions are performing better. Artificial Intelligence is more effective at gathering promotions based data. For instance, one of a leading food industry company used AI to analyze demand variations and top shopping trends during their promotion cycle, resulting in a 30 percent reduction in total sales cost.
A few food processing industries have already switched to Artificial Intelligence technology to better regulate their production lines to manage multiple products sizes and reduce waste and costs. Others have also been able to identify the optimum use of raw materials which are dependent on size and varieties.
For example, one potato based food processing industry has turned into AI to define which potatoes would produce the minimum waste when they are being cut for making fries, which ones will work best for fries crisps. Similarly, few beverages based food industry have also used AI to rank flavor predilections among consumers.
Artificial Intelligence will traverse from effective data analytics to offer efficiency, advanced references, broader reach, new product expansion, and improved consumer engagement. It could mean growth transformations for companies in the food processing industry.
Algorithms powered by Artificial Intelligence can quickly come up with alternative options rather spending time on laborious tasks using traditional computer-powered A/B testing. Like the human brain, Artificial Intelligence adapts to the environment and gets better with the time, especially with boring, repetitive tasks with precise and crisp results.
Source Edge Software Technologies offers AI as a new age technology solution to our clients across the world. We can help build AI solutions especially for food processing industry which can help you improve the overall production and manufacturing process. We have been developing deep expertise around AI by which food processing industries can leverage to improve feedstock sorting, increase safety and find efficiencies to save considerable labor time and costs in the future.