Food Connected’s report on AI Adoption, Attitudes, and Ambitions within the Agri-food Sector highlighted the willingness to embrace technology for long-term growth.
Of the 500 senior leaders across food manufacturing, processing, retail, distribution, and food service surveyed, 70% said they were using AI in some form, and 96% have set aside budget for future AI investment.
However, more than half (59%) said further investment in training was necessary to close the skills gap, while 96% planned to invest in AI over the next five years.
The use of AI in the production of food and drink has been well documented, particularly for tasks involving predictive maintenance and improving manufacturing operations.
Exploration of AI
Advances in generative AI – such as Large Language Models – are expanding the possibilities for its use across the sector. Manufacturers are starting to explore AI’s use in product development and creating efficiencies across new areas of the supply chain.
Despite the increase in AI adoption, there has been little progress in using the technology to advance manufacturers’ Environmental, Social, and Governance (ESG) goals.
Currently, just one in five food companies recognised AI’s potential to contribute to ESG objectives. Conversely, firms felt that food safety and product quality are where businesses will see the biggest potential for AI.
Stephanie Brooks, head of research and innovation at Foods Connected, commented: “We were surprised to see that many businesses don’t currently recognise the potential for AI in supporting ESG goals, considering AI’s capacity to enhance data capture and optimise supply chains to support sustainability goals,” said Brooks.
‘Critical turning point’
“AI is at a critical turning point for the food sector in 2025. We know AI can optimise production, streamline operations, and improve customer experiences - but that’s just the beginning. Education and addressing the skills gap are key for leaders now when investing in digital infrastructure.
“AI providers have an important role in educating the industry on this potential. ROI from digital technology isn’t always immediately apparent, so it’s crucial for technology providers and data experts to help businesses understand how AI and data can be leveraged strategically, making ROI clearer and reducing entry barriers for those wanting to truly digitise.”
As the sector shifts from early-stage trials to long-term investments, the focus is increasingly on integrating AI into supply chains in safe, secure, and sustainable ways.
Meanwhile, more than £7m has been awarded to help boost AI growth in UK, with over 100 projects set to benefit from the funding provided by UK Research and Innovation.
