The transformational benefits of artificial intelligence (AI) go well beyond the technology industry. Food manufacturing and the consumer-packaged goods supply chains are no exception to the benefits of this technology. AI enables producers to optimize their operations by improving quality control and safety, enhancing efficiency, and so much more. Following are five key benefits:

1. Supply chain visibility and traceability. Maintaining and building consumer trust while ensuring food safety is critical for manufacturers. Internet of things (IOT) devices equipped with AI-powered end-to-end traceability give consumers access to product origin, processing and transportation information. Additionally, blockchain technology along with AI protects data integrity, helps ensure immutability, and minimizes the risk of fraud and counterfeit products entering the marketplace. AI analytics also markedly enhance supply chain transparency and can boost response time to issues. Analytical insights made by AI can help supply chain professionals identify unauthorized substitutions or even unauthorized suppliers.

2. Boost production processes. Machine learning (ML), a subset of AI, can be used to analyze vast amounts of data collected from historical records, sensors and production lines in the manufacturing facility. With this large dataset, ML algorithms can identify patterns to optimize production parameters, leading to a better manufacturing process and efficiency improvements. Furthermore, AI algorithms can improve product turnaround time, reduce costs and increase productivity by speeding production schedules, inventory management and supply chain logistics. AI can also enhance predictive maintenance to ensure that equipment is being used to maximum efficiencies and productivity.

3. Advance safety and quality control. Undoubtedly, gaining consumer trust is paramount for a company's success – and earning that trust starts with meeting consumer expectations and federal regulations by ensuring food safety and prioritizing quality control. Systems enabled with AI technology can help users detect anomalies and deviations in real-time to decrease the risk of spoiled or faulty products on store shelves. Moreover, with AI's computer vision technology, manufacturers can perform automated visual inspections, leading to the highly accurate identification of defects and foreign objects in a product. AI algorithms can also monitor critical control elements, such as temperature and humidity, to protect storage conditions and avoid costly mistakes like food spoilage. Documentation is also critical and is frequently reviewed by government agencies and regulators. AI can be used to ensure that documentation is continuously updated meeting the current standards.

4. Product development and personalization. Consumer preferences are changing almost daily. People will always want new and innovative products. With AI, producers can get improved information about what their consumers want. Further, they can personalize product selection for customers. By using consumer data, ML algorithms can create recommendations for each individual, tailored to their unique preferences. Another benefit of AI is its chatbots and virtual assistants: These virtual concierges use ML algorithms to learn about each customer and help them make more informed choices based on their particular needs. AI can also be used to learn about flavor preferences, ingredient combinations and current trends. Manufacturers can then leverage these insights to create a product that customers truly desire.

5. Sustainability. As consumer goods continue prioritizing sustainability, reducing food waste is becoming a significant priority. AI offers a new way to achieve this goal, starting with predicting demand more accurately. Companies need to look at more than just historical sales data to increase accuracy. AI algorithms can handle more data than older planning methods, making it easier to include more data, such as customer preferences and weather patterns. Improving demand forecasts will lead these businesses to better inventory management and production planning. And these improvements mean less overproduction and excess inventory, ultimately decreasing food waste. Furthermore, AI can help streamline distribution processes. By analyzing trends and data of the current marketplace, the technology enables manufacturers to make more informed decisions to optimize routes by reducing transportation and fuel consumption, leading to a sustainable future.

Solving today's challenges

Using AI today can lead to an optimized future for the consumer goods industry. AI technology will only continue to advance and will pilot companies that capitalize on the solution to new heights of success. To stay ahead of ever-changing customer demand and create a safer and more sustainable food chain, supply chain leaders must welcome the innovative possibilities of AI.

AI continues to grow in importance with supply chain organizations. Download our Top 10 Trends for 2025 to learn why AI is number one.