Food & Beverage Makers Double Down on AI as Supply Chain Turmoil Threatens Production Targets

Facing tariffs, shortages, and rising costs, food beverage manufacturers scale AI to improve efficiency and uptime amid supply chain disruption.

Food and beverage manufacturers are increasingly turning to AI to increase productivity and operational efficiency, even as persistent supply chain issues loom as their greatest obstacle.

Leaders in the food and beverage industry identified supply chain disruption as their biggest obstacle to achieving production targets over the next 18 months, according to Augury's 2025 State of Production Health survey, a distinction not shared by other manufacturing verticals. Tariffs, unstable commerce, and growing expenses have all contributed to increased volatility throughout value chains, with even small shortages having an immediate effect on retail shelves and distribution networks.

The survey shows that food and beverage industries are reaping the rewards of their AI investments despite these obstacles. More than half of their AI pilot programs have effectively grown across sites, according to around 16 percent of respondents, a major rise from just 4 percent in last before year. AI is producing tangible advantages in areas like better production performance, decreased equipment downtime, and improved machine health.

The usage of AI-based work instructions, which assist frontline employees in maintaining uniformity and efficiency across operations in the face of disruption, has been a major factor in these improvements. AI tools are barely used for supply chain optimization itself, indicating a potential for deeper technological mixing, even though supply chain disruption is the leading business concern.

Despite continued manpower and capability tasks, industry assurance is still high, with 92 percent of food and beverage leaders expressing positivity about reaching full production capability. Also, 83 percent of respondents aim to spend more on AI this year, showing a determined dedication to digital transformation.

Analysts calculate that as manufacturers work to become stronger in changing market regulations and price volatility, growing AI applications in supply chain visibility and analytical sourcing may be essential.