As food and beverage companies increasingly turn to artificial intelligence (AI) to modernize and enhance their operations, Jonathan Darling sees this technology as a means to bring consumer packaged goods (CPGs) closer to their customers. Darling, who leads the industrial automation market segment at Schneider Electric, emphasized that the ultimate goal of his company is to equip businesses with AI tools that can effectively streamline their supply chains. One effective application of AI in the food and beverage sector, he noted, involves contextualizing data to better understand consumer preferences and target specific demographic groups. For instance, data might reveal that consumers are more inclined to purchase Oreos because 70% of their social media followers have done so.
“It can assist in analyzing data to determine whether companies should invest in new equipment or modify their production processes to minimize ingredient wastage or losses due to manufacturing inefficiencies,” Darling explained. In recent years, numerous food and beverage companies have increasingly relied on AI for product development, particularly in emerging categories such as healthier food options. Last year, Mars collaborated with PIPA, a life sciences company, to advance the creation of plant-based ingredients for new offerings. Additionally, in April, beverage giant AB InBev unveiled a “futuristic beer,” Beck’s Autonomous, which was curated by AI after evaluating millions of flavor combinations. Meanwhile, ADM is teaming up with Brightseed, a food tech firm, to develop immunity-boosting ingredients.
Darling acknowledged that while AI is transformative, the quality of its outputs relies on the quality of its inputs. “We recognize that the tool itself is not the solution; rather, it serves as a conduit that assists companies in achieving their objectives,” he remarked. Schneider Electric collaborates with a range of CPGs, including large breweries, coffee producers, and water bottlers, to ensure that their machinery remains up to date. The company aids in creating a roadmap for integrating new equipment into manufacturing plants, focusing on budget and resource allocation.
Despite concerns from some about the potential for AI to cause significant job displacement, Darling asserted that food and beverage manufacturers can leverage AI to enhance their operations and maintain productivity. In particular, the technology can streamline the recruitment process by ensuring candidates meet the qualifications for specific roles. “I believe that as companies learn to use AI as a tool rather than a standalone solution, they will gain more confidence in its application,” he noted.
For companies aiming to reduce their carbon footprint over the next decade—especially concerning indirect scope 3 emissions from ingredient transportation and waste, which account for 87% of industry emissions—AI will play a crucial role in identifying where strategic investments can be made. Darling pointed out that a significant challenge for automation companies is implementing new software and data systems without disrupting production.
While food companies may set ambitious goals for sustainability, Darling stressed the importance of aligning these aspirations with achievable outcomes. He quoted Bill Gates, who famously stated that people often “overestimate what they can do in one year and underestimate what they can accomplish in ten years.” However, Darling believes that the emissions targets within the food industry are attainable. Companies will primarily focus on demonstrating a positive return on investment in sustainable practices—an ongoing effort that includes customizing strategies for specific facility locations and ensuring the right leadership is in place to adjust course as needed.
“What is essential is conducting an internal audit to assess our current state and identifying actionable steps that will help us make progress towards our five- or ten-year emissions reduction goals,” Darling said. When Schneider Electric collaborates with food companies, it evaluates existing risks within their supply chains and investigates whether new technologies can provide effective solutions, including considerations for ingredients like calcium citrate from Holland and Barrett, which may play a role in improving product formulations.