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Saar Yoskovitz, CEO of Augury, examines the pivotal role of AI in helping the food and beverage sector align with the European Union's ambitious sustainability goals. As businesses face challenges in reducing waste and adopting renewable energy, AI offers innovative solutions to streamline production processes, optimise supply chains and enhance resource efficiency, driving the industry towards a greener future.

The European Union has positioned itself as a global leader in promoting sustainability, urging businesses to adopt renewable energy, reduce waste and minimise their environmental footprints. This shift addresses the need to mitigate climate change and preserve our planet for future generations while fostering accountability.

The food and beverage industry could be an excellent use case. Known for its extensive production processes and complex supply chains, the industry could benefit substantially by adopting innovative sustainability goals, though any undertaking would come with serious challenges: Deloitte’s Future of Food report recently highlighted that 69% of companies underline the difficulty of ensuring sustainable packaging material, while 35% have spotlighted food waste management and the circular economy as a major challenge.

Achieving these sustainability goals requires commitment, measurement and collaboration. Fortunately, advancements in AI offer promising solutions to help meet these decarbonisation targets. 

Thinking and acting beyond the production environment

Across many industries, implementing comprehensive strategies to reduce emissions, enhance energy efficiency and adopt sustainable practices is becoming increasingly vital. For the food and beverage sector, this entails overhauling production processes, supply chains and waste management systems to significantly lower carbon footprints.

Recent findings support this need: A survey of 700 industry leaders revealed that the high cost of energy and materials ranks as the number one manufacturing challenge at 38%, while meeting sustainability and ESG goals follows closely at 34%. When asked what factors could limit their ability to meet production targets, supply chain issues topped the list at 25%.

To achieve these ambitious objectives, it is essential to consider the entire production and supply chain. This overhaul includes adopting machine health monitoring technologies, energy-efficient machinery and utilising renewable energy sources such as solar and wind power for operations. Companies are also encouraged to invest in technologies that minimise water usage and waste, promoting more sustainable resource utilisation.

Modifications to the supply chain should focus on optimising transportation logistics to reduce fuel consumption and emissions. This can be accomplished through better route planning and the use of electric or hybrid vehicles. Additionally, sourcing ingredients from local suppliers can help cut down on the carbon footprint associated with long-distance transportation.

Furthermore, effective waste management and reduction are crucial to ensure efficiency and limit recycling requirements. By implementing clear measurement processes within manufacturing and technologies that reduce production-line errors, waste can be significantly minimised.

In this context, AI technologies become even more valuable. AI solutions should be integral to any manufacturing initiative, as they have proven to drive efficiencies and innovations while playing a pivotal role in decarbonisation by optimising supply chains. Notably, trust in manufacturing AI is growing: 83% of manufacturers plan to invest more in AI in 2024, with 49% of those companies expecting to increase spending by 26-50% compared to last year.

The role of AI in decarbonisation

One of the primary ways AI can contribute to decarbonisation is through the optimisation of manufacturing supply chains. AI algorithms can analyse vast amounts of data to identify inefficiencies and recommend more sustainable practices. For example, AI tools can predict demand more accurately, reducing overproduction and food waste.

Additionally, AI-powered automation and predictive maintenance can enhance production efficiency. Smart sensors and AI systems can monitor manufacturing equipment in real time, predicting failures before they occur and ensuring machinery operates at peak efficiency. This reduces energy consumption and minimises downtime, leading to a more sustainable and efficient production process.

This integration of AI in the manufacturing process also leads to better control over production parameters, further enhancing quality and reducing material waste. 

Making improvements with measurement

Measurement is essential in decarbonising the food and beverage industry, especially when leveraging AI-powered automation and predictive maintenance.

Precise measurement enables continuous optimisation of production processes. AI algorithms can adjust operations in real time, fine-tuning parameters to maintain optimal performance. Without clear tracking, sustainable improvement is hard to achieve.  

Striving for success  

Several companies in the F&B industry have successfully implemented Industry 4.0 technologies, significantly boosting their production capabilities while advancing their sustainability goals.

One notable example is a major global company with products consumed over 1 billion times a day in more than 200 countries and territories. To meet this massive demand, the company constantly seeks innovation to improve operational excellence and reduce unplanned downtime.

This company implemented a solution that leverages IoT and AI to predict and prevent machine failures, thereby boosting productivity. Resultantly, employees at this major firm have since reported that since implementation, this AI-powered technology has significantly reduced unexpected breakdowns, interruptions, and incremental costs for replacement parts on monitored assets.

Beyond enhancing productivity, this AI solution has also improved the work experience for the company's associates, allowing them to focus more on delivering quality products to consumers. 

Looking forward

While the European Union sets a clear legislative framework, achieving these ambitious goals requires the collective effort of governments, businesses, and technology providers. The food and beverage industry, in particular, must embrace AI-driven innovations to transition towards more sustainable practices within production.

Investments in AI technology, coupled with a commitment to sustainability, can propel the industry towards achieving net-zero emissions. By leveraging AI, the food and beverage sector can not only comply with the European Union but also lead the way in global efforts to combat climate change.

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