Please sir, can I have some more? AI can help F&B businesses

A survey of manufacturing professionals across four nations has highlighted how AI is being deployed in manufacturing. However, it highlights that more investment is needed by F&B businesses to tackle supply chain disruption, which is the industry’s top barrier to meeting production targets. 

Procurement issues were top of the list, specifically in this sector, while other industries singled out digital change management or disconnected ecosystems as their biggest issues. 

Of the respondents in the F&B sector, more than one in ten said that supply chain disruptions could actually limit their ability to deliver on their production goals over the next 18 months. 

This confirms the view from the winner of this year’s Startup 100 Index, Omnea, that procurement is not only dreaded by businesses but actively avoided, and is the problem that they are solving with their AI concierge service. 

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Significant challenges

While the Augury’s 2025 State of Production Health report gathers intel from businesses with an annual revenue of $100M+, the findings are absolutely relevant to SMEs. Labour shortages, rising staff costs and dropping confidence all get a mention; and these have been actively felt by F&B businesses across the UK.

However, procurement problems were highlighted by the F&B business owners as having been tied to rising product costs (and for some, tariffs) but also fluctuations in demand for specific products. The popularity of “plant-forward menus” is one example of businesses having to rapidly change their procurement needs to match customer tastes. 

AI possibilities

As Chris Dobbrow, VP of Business Development at Augury, told Consumergoods.com, F&B businesses recognise that AI could have an impact on solving this problem, but supply chain management fell by four ranking slots in this latest survey, as compared to 2024. 

The report authors explain: “In a time of trade policy volatility, respondents may address tariffs more with cost accounting and pricing rather than sourcing arrangements/suppliers, though they may need to work both fronts going forward.”

However, the report did suggest that where F&B businesses have put AI technology in place, it is delivering on the investment.  Sixteen percent of the leaders in this sector shared that more than half of the AI pilot projects they started have now been rolled out across their business. 

The survey also revealed that AI is having the most impact in creating AI-generated work instructions; improving production – including making sure that any machinery is working properly – and reducing downtime. 

An emphasis on procurement

The survey results reveal that 78% of the business leaders are planning on investing in AI technology in the coming year. While this was across sectors, it was also noted that 18% plan on prioritising streamlining their supply chain visibility using AI in 2026. 

However, says Dobbrow, for F&B businesses, this needs to be even more of a focus. “Despite recognising supply chain as their biggest hurdle, food and beverage companies rank supply chain management lower when it comes to AI impact. The current data shows that AI tools are not yet being applied as widely or effectively in this area,” he shares.

He adds that “supply chain resilience can protect production from geopolitical swings and ensure product gets to the end-customer”. For businesses of all sizes, the message is clear. AI can be a powerful tool in solving procurement troubles; and solving these could be businesses’ biggest defence in difficult times. 

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Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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