Phrases such as “artificial intelligence” and “machine learning” are dominating headlines – and boardroom discussions – but what do they really mean? And more importantly, what can they do for food and beverage manufacturers?

Infor, the industry cloud complete company, has developed a guide for food and beverage producers seeking to learn more about artificial intelligence (AI) and machine learning (ML), and how they can incorporate them into their operations.

What is AI/ML?

Confusion still exists around AI, even though employees use it in everyday activities. A recent study¹ from technology analyst firm Valoir found 84% of workers have experimented with one form of AI, despite not fully understanding what it is. Additionally, 17% of employees believe AI can’t help them with their work activities.

AI refers to the concept of machines sensing, reasoning, acting or adapting like a human – but not to think or feel like humans. Instead, AI involves building systems that mimic certain human abilities, allowing machines to perform specific tasks efficiently and accurately, enhancing human intelligence.

To learn more about how Infor supports food and beverage companies with AI, check out this ebook!

Meanwhile, ML is a subcategory of AI. It entails developing and training algorithms that allow machines to make predictions and decisions based on data they receive.

There are three main types of AI that food and beverage manufacturers should focus their attention on. Predictive AI combines statistical techniques, ML algorithms and historical data patterns to make educated guesses about what will happen in the future – including events, trends, outcomes and behaviors.

Prescriptive AI can support decision making by suggesting possible courses of action to achieve specific goals, such as reducing energy consumption or accelerating throughput.

The third type of AI – generative AI – is likely the most familiar to people. Through widely available tools, people can create text, images, music and other types of content based on learned patterns from existing content examples.

The Application of AI for Food & Beverage

AI – particularly predictive and prescriptive AI – can support food and beverage manufacturers in many ways to achieve tangible business value.

Before implementing predictive AI, Infor witnessed customers spending 40 hours or more per month to manually forecast future demand using Excel spreadsheets. They found the forecasts were not accurate, since discrepancies existed across different lines of business, and the typically huge volumes of data involved, presented a very challenging analysis task for the average human. In addition to demand and labor predictions, predictive AI can help food and beverage companies optimize yields and support quality control.

Prescriptive AI can guide food and beverage manufacturers in making decisions. Specifically, that includes tailoring product recommendations, optimizing recipes and suggesting strategies for pricing and improving margins.

With generative AI, creating new content – especially text – can help increase productivity and scale efforts across complex, highly repetitive workflows. For example, generative AI can help manufacturers develop and translate product descriptions for marketing materials, create product briefs to support product development, and compare documents to ensure compliance with internal standards.

Build or Buy AI?

Selecting uses for AI is only one part of the process. If food and beverage manufacturers decide to implement AI in their operations, they must also determine whether to build their own AI solutions or seek help from an existing technology partner.

To build AI solutions, food and beverage companies can assemble a team of in-house data scientists, data architects and ML engineers. They’ll also need tools for integration, data repository, data management and cleansing, AI and ML processing, and results visualization. This method requires expertise, time and money – though some manufacturers may have the timeline and budget to develop and manage their own AI tools and solutions.

Alternatively, food and beverage manufacturers can turn to technology vendors for AI solutions, potentially reducing labor and software costs and shortening implementation timelines. However, before using a technology service provider, food and beverage manufacturers should ask questions around the service provider’s expertise in micro-verticals, such as poultry, snacks or confectionery.

Food and beverage companies should also ensure that AI solutions partners have the ability to help customers at any stage in their AI journey, especially if the company requires guidance through every step of the process, from assessment to continuous post-implementation support.

It’s also recommended to ask about data privacy and system integration, since security and connectivity is necessary to derive insights from data in a way that is protected with a responsible usage of AI. Additionally, manufacturers should inquire about the technology partner’s comfort in sharing how its AI solution generates its recommendations. Clarity in this process builds trust among manufacturers and technology vendors.

To learn more about how Infor supports food and beverage companies with AI, check out this ebook!

Moving Forward

The potential for AI and ML is endless, and there are many practical applications of AI for the food and beverage industry, including enhancing operations, improving yields and refining forecasting and decision-making processes.

Infor is a global leader in business cloud software specialized by industry. Over 60,000 organizations in more than 175 countries rely on Infor’s 17,000 employees to help achieve their business goals.

¹ “Language Matters: AI User Perceptions.” Valoir, February 2024.