AI paves the way for improved products, supply chain processes, moreAI paves the way for improved products, supply chain processes, more
Artificial intelligence is transforming the food and beverage industry by enhancing product development, optimizing supply chains, reducing food waste and driving innovation, while also raising questions about transparency and ethical use.

At a Glance
- AI enables brands to create new, tailored products quickly by analyzing consumer trends and preferences.
- AI improves forecasting, inventory management and disruption mitigation, enhancing efficiency and reducing food waste.
- While AI offers transformative benefits, it also raises concerns about transparency, data accuracy and ethicality.
Artificial intelligence (AI) has touched almost every aspect of the food and beverage industry. From product development to supply chain management, the game-changing tool continues to evolve and offer sustainable, effective and efficient solutions to help the industry thrive.
“The big topic of the year is AI,” Lu Ann Williams, co-founder and global insights director at Innova Market Insights, explained in the company’s Nov. 2024 webinar about the top 10 food and beverage trends for 2025. “We see how brands are starting to communicate how they’re using AI to create new products that are perfect, enhanced or interesting.”
Innova Market Insights, a global market research firm that specializes in CPGs, observed a 720% increase in foods and beverages with an AI-related claim over the last year, confirming that the industry is welcoming AI with open arms. “We’re seeing AI being applied in different ways … food safety, flavor innovation, wellness and sustainability,” Williams said.
Streamlining F&B operations
Jordan Weitz, co-founder of the AI-powered platform Keychain, agreed that AI is revolutionizing the industry by driving efficiency in product development and streamlining the supply chain.
“With consumer preferences constantly evolving, AI-powered tools are helping brands quickly connect with the right manufacturing partners to simplify their workflows and stay ahead of the curve,” he explained. “Many brands have already started to use AI for supply chain forecasting and this trend is likely to continue in 2025 as companies will look to more effectively predict demand, optimize inventory and stay ahead of innovation curves. This will allow brands to bring products to market faster, and in turn, allow consumers to find more of the foods and beverages they actually want on their grocery store shelves at more affordable price points.”
Improving supply chain management
Ben Wynkoop, global industry strategist for grocery and convenience at Blue Yonder, echoed Weitz’s comments, highlighting how AI is being utilized across almost all areas of the supply chain to help enhance visibility, mitigate disruptions and identify potential issues before they escalate.
“Predictive AI models are being utilized to anticipate demand spikes, production delays, weather impacts and raw material shortages, enabling food and beverage companies to proactively respond to and minimize disruptions,” he said. “AI-powered computer vision systems offer real-time visibility and adjustment of inventory levels and flows, while digital twins allow companies to simulate a wide range of scenarios to optimize operations.”
Mitigating food waste
Another upside to AI technologies, according to Wynkoop, is their ability to help tackle a major problem the industry faces: food waste. “It goes back to the saying ‘garbage in, garbage out.’ The most effective AI-driven platforms are those that learn from themselves and operate as closed systems,” he explained. “This means the data included must be carefully managed to ensure accuracy, and the system needs to learn from best practices and not rely on publicly sourced data. The impact on fresh foods can be immensely valuable. By improving forecasting throughout the supply chain, increasing efficiency and significantly reducing waste, these AI-driven solutions not only improve the bottom line but also support our food ecosystem by reducing waste due to inefficient supply chains.”
The ability for AI to filter through massive amounts of data, run thousands of scenarios and determine the best approach in a matter of seconds is where its true power lies, Wynkoop and Weitz pointed out.
“Planning cycles that have historically taken years are now down to only a few short months (and in some instances, weeks) thanks to new technologies,” Weitz said. “That said, we’re going to see AI significantly cut the amount of time it takes for brands to bring new products to market in 2025. With AI, brands can search for any product line they want to produce and instantly access hundreds of options for varieties and manufacturers — a process that used to take hours, but now with a platform like Keychain, takes just a few seconds.”
The future of AI in the industry
With AI’s vast capabilities also comes skepticism, particularly since it draws data from all kinds of sources, credible or not.
“One of the major challenges remaining is the reliance on bad data and the potential for AI to learn from poor processes,” Wynkoop said. “At Blue Yonder, we focus on ensuring that we have clean data and avoid inputting data that could drive inaccuracies. We also ensure our modeling utilizes relevant processes, enabling AI to learn from best practices and continually improve.”
In addition to reliable data, ensuring transparency is key. “As with any industry, CPG brands that are using AI need to clearly communicate how they’re using it in order to build trust with consumers,” Weitz added. “Whether it’s related to consumer preferences, purchase history or trending items, brands should always communicate how AI is helping them better understand today’s consumers and create products that truly resonate with people.”
By leveraging AI’s capabilities to create better products, reduce waste and optimize supply chains, brands are not just enhancing their operations — they’re meeting consumer needs in ways that were once unimaginable, shaping a more responsive and sustainable industry.
About the Author
You May Also Like