Where AI provides value
Regardless of supply chain concerns, food and beverage manufacturers continue to adopt and scale AI. 16 percent report that more than half of their AI pilot projects have already reached scale across all sites, avoiding “pilot purgatory.” Across the manufacturing industry, the percentage of companies that have deployed AI beyond the pilot stage more than tripled between 2024 and 2025, rising from 4% to 14%. F&B leaders can capitalize on the wave of maturity and continue to look for digital transformation opportunities.
So where is this investment paying off? The study found that F&B leaders are seeing results through improved machine health, reduced downtime, and stronger production health. The primary use is for AI-generated work instructions. This provides precise instructions to frontline employees while maintaining continuity between different locations. These applications support business stability through current supply chain disruptions.
Food and beverage companies rate supply chain management low when it comes to impacting AI, even though they recognize supply chain as the biggest hurdle. Current data shows that AI tools have not yet been applied extensively or effectively in this field. Bridging this gap is critical, as supply chain resilience protects production from geopolitical fluctuations and ensures products reach end customers.
“The Paradox of Confidence”
The majority (92%) of food and beverage industry leaders say they are confident in their ability to reach their full production capacity, but a false sense of confidence can emerge when considering operational risks. Companies predict strong future performance despite ongoing supply chain issues, labor shortages, and limited manufacturing capacity.
Still, food and beverage companies experience fewer challenges from fragmented ecosystems than other sectors. This ability to integrate vendors and systems is a strength that positions them to more effectively apply AI across their operations. The data also shows that these manufacturers will lead spending on AI through 2025, with 83% planning to increase their investments. The commitment to continue funding this technology shows that F&B leaders are serious about making AI a core driver of performance.
Looking to the future
F&B is at a tipping point. While ongoing supply chain disruptions pose challenges to production stability, the adoption of AI is accelerating and delivering benefits through machine health monitoring and downtime prevention.
To see lasting impact, manufacturers need to clearly define where AI can deliver results, such as supply chain visibility tools that provide real-time insights and predictive models that help reroute sourcing during disruptions.
Food and beverage leaders who implement supply chain management at the same level as maintaining machine health will achieve AI adoption while building a competitive advantage. In an environment of changing trade policy and fluctuating costs, it can make the difference between falling behind or ahead of the curve for manufacturing as a whole.
Chris Dobrow is Augury’s Vice President of Business Development.
