Enhancing our passion for food and agriculture with AI

Artificial intelligence (AI) and more specifically Generative AI (GenAI) is one of the most exciting and promising technologies of our time. It has the potential to revolutionise various industries, from healthcare to education, from manufacturing to entertainment.

The Food, Beverage and Agriculture sector is a cornerstone to our Irish market. It brings to life our passion for delivering exceptional products that delight our customers and showcase the Irish heartbeat and our passion for life. But how does AI help those working hard to support this sector.

The challenges and opportunities of food and agriculture

The many challenges facing the food and agriculture sector in the 21st century, require innovative solutions that can increase productivity, efficiency, quality, and the sustainability of food production, distribution and supply chain resilience

AI can offer solutions, alongside the working knowledge from those that have lived and breathed the growth of the sector. It can enable data-driven decision making, automation, and the optimisation of growth and manufacturing processes. For example, AI can help farmers monitor crop health, predict yields, optimise irrigation and fertilisation, detect pests and diseases, and reduce environmental impact. AI can also help food and beverage producers and retailers optimise supply chains, reduce waste, enhance product safety, deploy dynamic pricing, and tailor products and services to consumer preferences and needs.

AI is already delivering substantial value across industries:

Healthcare: AI can help diagnose diseases, analyse medical images, recommend treatments, design drugs, and improve patient outcomes.
Manufacturing: AI can help automate processes, improve quality control, reduce defects, predict maintenance, and optimise logistics and inventory.
Finance: AI can help detect fraud, manage risk, automate trading, provide customer service, and offer financial advice.

Adoption in the food and beverage sector has been slower, but the opportunity is vast and includes applications at the farm level such as crop and soil monitoring, on the food processing production floor with supply chain optimisation right to the end of the food chain in the retail setting with applications to enhance customer experience through personalisation of shopping. Here are some key benefits that AI is already bringing to this sector:

Increasing crop yields by 10 to 15 percent through precision agriculture, which uses data from sensors, drones, satellites, and weather forecasts to optimise irrigation, fertilisation, and pest control.
Reducing food waste by 20 to 35 percent through smart packaging, which monitors the freshness and quality of food products and alerts consumers and retailers when they are nearing expiration.
Improving food safety and traceability by 30 to 55 percent through blockchain and machine vision, which enable transparent and secure tracking of food products along the supply chain and detecting any anomalies or contaminations.
Enhancing consumer experience and loyalty by 15 to 25 percent through personalisation, which leverages data from online platforms, social media, and IoT devices to tailor food products, services, and recommendations to individual preferences and needs.

Key considerations and enablers to AI adoption

Artificial Intelligence can bring many benefits to the food, beverage, and agriculture sector, but it also comes with some challenges and risks. Therefore, business owners who want to adopt AI in this domain should consider the following points:

AI is not a magic bullet. AI can augment human capabilities, but it cannot replace them. AI systems need human input, guidance, and oversight to ensure their reliability, accuracy, and ethical application. Business owners should not rely solely on AI, but rather use it as a tool to complement and enhance human knowledge, expertise, and judgment.
AI is not a one-size-fits-all solution. AI systems need to be tailored to the specific context, goals, and constraints of each use case. Business owners should not adopt AI blindly, but rather evaluate its feasibility, suitability, and value for their particular use case. They should also consider the data availability, quality, and security, as well as the technical, legal, and social implications of using AI in their domain.
AI is not a static technology. AI systems are constantly evolving, learning, and improving, based on new data, feedback, and innovations. Business owners should not adopt AI once and for all, but rather update and maintain it regularly, to ensure its performance, relevance, and compatibility with changing conditions and requirements. They should also monitor and measure the impact and outcomes of AI and adjust their strategies and practices accordingly.

Despite the opportunities that AI presents, only a relatively small number of organisations have robust processes and teams in place to plan for adoption. To make the most of this emerging technology, food and beverage companies must lay the groundwork for the effective, productive and safe use of generative AI. According to KPMG, food and beverage companies should undertake five key actions in order to fully exploit the opportunities presented by Gen AI.

1. Assemble trusted data sources and start mapping out ways to measure outcomes

Generative AI requires two key components of trust for adoption: trust in data sources and trust in outcomes. Generative AI engines are trained using a vast expanse of data that is largely available to the public. However, not all publicly accessible data sources are reliable nor, in most cases, do they include all the data individual organisations will need to leverage the technology.

These shortcomings illustrate the importance of building a connected data infrastructure that will allow AI and GenAI to thrive and deliver focused insights, drive better decision-making, spot risks, and capitalise on opportunities that might otherwise go overlooked. Importantly, a connected data infrastructure that supports cross-functional data can help organisations learn more about customers and their end-to-end journey. Food and Beverage companies can benefit from more connected data infrastructures to tackle many of the risks and new reporting requirements around global supply chains. Furthermore, better data infrastructure can be used to communicate information about the nutritional and sustainability status of food and beverage products to the consumer.

2. Develop a “responsible AI” framework

Many organisations are already using AI in some form and it is important to create and maintain a framework for the responsible use of AI which should include governance and ethical intentions, taking into consideration regulatory compliance, the impact on customers, employees, and other stakeholders. As Food and Beverage companies begin to use and exploit GenAI the development of a responsible AI framework will be critical for maintaining an authentic relationship with customers, gaining their trust, and, in the process, protecting their reputations for responsible use of their personal data.

There are risks around the use of GenAI relating to inaccurate results, fraud and potential infringement of intellectual property and as such Food and Beverage companies will need to ensure that the technology is being used not only ethically, but also legally. In addition to mitigating risk, building a responsible AI framework will allow food and beverage companies to develop and use AI in a more optimised manner, allowing for faster speed to value for the business.

3. Develop a backlog of relevant and exploratory use cases

As part of a broader data and AI strategy, companies should clearly state that GenAI is worth exploration and investment. Companies should develop a clear strategy that identifies roles and responsibilities, including the people and teams that will be responsible for decision-making around the GenAI agenda and for the technology’s adoption.

KPMG advises Food and Beverage companies to establishing a roadmap and conduct proof of concepts or pilots using GenAI to prepare for future adoption. As this technology’s capabilities are expected to transform rapidly over the coming years, companies are advised to have a technology strategy and to perform a continual scan of market capabilities against the requirements of their use cases.

4. Deploy an enterprise-class AI engine, underpinned by good data management practices

GenAI holds significant potential to improve business processes and create a more engaging experience for customers. However, underpinning its success is the design and management of robust data principles and trusted data sources.

Many Food and Beverage companies already have strategies and systems to gather, store and track data on their business processes, to take full advantage of that data, companies can now deploy an enterprise-class GenAI engine, one that can be trained in a secure environment using proprietary data that is uniquely applicable to an individual business. In addition to safeguarding data while sharpening the value of the GenAI output, GenAI will also facilitate the safeguarding of the questions or “prompts” given to the engine to trigger new outputs. Those prompts or questions have inherent value to companies and are best kept away from public platforms that can be accessed by competitors.

5. Acquire the right technical talent to take advantage of AI

For organisations to properly execute on their AI strategy and implement use cases they will require the right people and talent. These positions will include experienced data scientists, software engineers, data engineers, and others with industry and domain expertise, all of whom have been important to leveraging AI in the past. But need new specialists, e.g., prompt engineers, will also be needed to test and validate GenAI models and outputs. Food and Beverage companies should empower and support these teams to explore this game changing technology to the benefit of their businesses.

Closing thoughts

Artificial Intelligence has the potential to transform consumer behaviour and the food and beverage retail sector. The 2024 Next Gen Retail Survey Volume 6, provides some interesting insights into the attitudes of Irish consumers to AI. Key results show that,

2 in 5 consumers feel they will have to trust how retailers are using AI to determine their shopping choices in the future,
Younger consumers feel more strongly that AI will contribute to a better shopping experience online,
Less than 1 in 5 feel AI will improve in-store shopping experiences, and
Males and under 35s feel AI will improve the customer experience and make it safer to complete transactions.

Overall, there is a balance of confusion, curiosity, and uncertainty among consumers of the role AI has to play and what it can offer for their shopper experience, with only 18% saying AI will improve their in-store experience. Unsurprisingly, under 35s are notably more likely to be favourable towards AI and the positive impacts it can have on shopping online and in physical stores.

Seek support. Artificial Intelligence is a complex world of technology, tools and science. No business owner should feel alone on this journey. There is expertise across sectors to help, to provide guidance and support, and to help navigate this new wave of advanced technology.