Manufacturing
Praises of AI and ML include minimising the potential for human error in manufacturing, reducing costs and speeding up processes.
wearing the correct workwear and performing the necessary cleaning procedures – could have a dramatic impact on food safety.
Supply chain management can also benefit from the power of AI. As transparency is paramount for food safety and regulatory compliance, AI is uniquely positioned to assess the deluge of data from monitors throughout the logistics process to ensure that all safety standards are met. For example, any deviation from the required parameters of the cold chain can be swiftly identified and reported.
As well as the automation of processes, AI can also play a key role in the development of new products, helping food manufacturers to identify new trends, incorporate new and popular ingredients, and create more healthy and nutritious recipes in response to customer preferences. In the age of social media, it is easier than ever to conduct surveys or to parse the comments from major platforms to see what customers want, and AI can ensure that the valuable information hidden within a huge quantity of data comes to the surface.
Big companies are the prime movers Nestlé is an early mover into AI, using it primarily to analyse clinical data to inform the creation of new healthy and sustainable products. Speaking at a recent investor conference, Nestlé’s chief technology officer, Stefan Palzer, noted that data science, AI and ML will be crucial for the company’s rapid response to industry trends, remarking that the company had developed “AI-based concept generation” that could respond to trends on social media to gain insight into what customers want. To leverage the vast amount of information available on social media – along with market data and customer input – the company’s AI concept engine can provide the platform for the
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generation of innovative ideas for new products, which can be assessed by employees and potentially put forward for full development. The company has also built an AI module for recipe development, leveraging the ability of the system to rapidly identify food trends and customer preferences to rapidly create goods that appeal to market needs.
Nestlé is not confining its use of AI to product development either as it is also used to improve the efficiency of its digital marketing strategy. Of its total media spend, 55% goes on digital media assets, and almost 16% of its sales are through e-commerce platforms, so it is vital to understand how its digital presence is generating value. AI can provide quick access to actionable data insights that enable the company to keep pace with fast-changing consumer needs. The company’s analytics capability helps it to steer a steady course through a volatile retail environment, where the rising cost of raw materials is a big challenge to the bottom line. Nestlé has developed a strategic revenue management programme that covers almost 95% of its markets, with AI playing a key role in tracking and enhancing the relevance of more than 500,000 digital assets per year across a variety of digital platforms. The result is a 66% improvement in performance in return on ad spend across Meta platforms, Facebook and Instagram.
Fellow industry giant PepsiCo has fully embraced AI, with the company’s chief strategy and transformation officer, Athina Kanioura, recently noting that “businesses have systems that have intelligence behind them that have transformed the way we solve problems, engage with consumers and make products”. PepsiCo’s digital transformation process includes using AI for a variety of purposes, from analysing the best time to plant crops to forecasting how many
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