Artificial intelligence isn’t just a much-hyped innovation in tech; the food industry is also investing heavily in this hot trend.
Americans heading to the grocery store or their favorite fast food restaurant have noticed the introduction of new technology in services like self-checkout kiosks and even AI-powered ordering in drive-thru lanes.
While U.S. consumers face ongoing food inflation, seek deals and change spending habits accordingly, the food industry is working to stay competitive by investing in artificial intelligence to help curb high labor operating costs and lower prices for certain items.
For example, fast-food chains like McDonald’s, Taco Bell, and Wendy’s have relaunched their value menus. Major retailers Walmart and Target have already lowered prices on some groceries.
“In this environment, it’s very difficult to make strong profits, make huge sales and keep customers happy,” said Neil Saunders, managing director and retail analyst at GlobalData. “It’s a very difficult equation to balance. I The idea is that unless the economy is on a different footing, it won’t be fully balanced.”
Amid a tough economic backdrop, McDonald’s this year announced plans to spend $2 billion to use artificial intelligence and robots in its restaurants and drive-thru restaurants. Grocery stores will spend $13 billion on technological automation by 2022, according to research from the food industry association FMI. FMI expects spending on innovations such as smart shopping carts and revamped self-checkout lanes to surge 400% by 2025.
“We see a lot of benefits in the coming years, with artificial intelligence and technology able to enhance the customer experience while making team members’ jobs easier,” said Joe Park, chief digital and technology officer at Yum Brands.
watch video Learn more about how the food industry is using artificial intelligence to reinvent the customer experience.
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