Where Food & Beverage Manufacturers See Real ROI from AI
The food and beverage sector is in the spotlight of Augury’s 2025 State of Production Health report, and for good reason. Among all manufacturing verticals surveyed, F&B stands out as the only group that listed supply chain disruption as its top barrier to meeting production targets. At the same time, these manufacturers are investing in and seeing tremendous ROI from AI solutions.
Supply Chain Stays at the Top of the List
According to the survey, 15.7% of food and beverage leaders flagged supply chain disruptions as the main factor that could limit their ability to hit production goals over the next 18 months. That finding sets them apart, as other manufacturing sectors placed digital change management or disconnected ecosystems at the top.
The food sector’s supply chain focus is not surprising. Food producers face significant challenges because of tariffs, disrupted trade and rising production expenses. The risk is amplified by changing consumer expectations, since even minor shortages ripple through the value chain and onto grocery shelves. For example, there’s been a recent shortage in cottage cheese due to its increased popularity on TikTok.
When it comes to quantifying AI’s impact across all verticals, supply chain management and optimization actually fell by four ranking slots compared to 2024. This suggests many companies seem to be managing volatility with cost accounting or pricing adjustments rather than investing in more resilient sourcing. F&B leaders appear to be addressing both fronts to stay viable.
Where AI is Delivering Value
Regardless of their supply chain concerns, F&B manufacturers continue to see progress with AI adoption and scaling. Sixteen percent report that more than half of their AI pilot projects have already reached scale across all sites, evading “pilot purgatory.” Across the manufacturing industry overall, the percentage of companies that rolled out AI beyond pilot phases more than tripled between 2024 and 2025, rising from 4% to 14%. F&B leaders can capitalize on the maturation wave and continue to look for digital transformation opportunities.
So where is this investment paying off? The research shows that F&B leaders see results via improved machine health, reduced downtime and enhanced production health. A primary application is AI-generated work instructions, which provide frontline workers precise directions while maintaining continuity between different locations. These applications support business stability through current supply chain disruptions.
Despite recognizing 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. Bridging that gap will be critical since supply chain resilience can protect production from geopolitical swings and ensure product gets to the end-customer.
The 'Confidence Paradox'
While a vast majority (92%) of food and beverage leaders say they are confident in their organization’s ability to reach full production potential, a sense of false confidence may emerge when operational risks are examined. Companies project favorable future performance despite ongoing supply chain problems, workforce shortages and manufacturing capacity limitations.
Even still, food and beverage companies experience fewer challenges with disconnected ecosystems than other sectors. This ability to integrate vendors and systems is a strength that positions them well to apply AI more effectively across operations. The data also shows these manufacturers will lead the way in AI spending throughout 2025, with 83% planning to increase their investments. The commitment to keep funding this technology shows that F&B leaders are serious about making AI a core driver of performance.
Looking Ahead
F&B finds itself at an inflection point. The ongoing supply chain disruptions challenge production stability but AI implementation has accelerated to deliver benefits through machine health monitoring and downtime prevention.
To see continued impact, manufacturers should clearly define where AI can deliver results, such as supply chain visibility tools that provide real-time insights, or predictive models that help reroute sourcing during disruptions.
The F&B leaders who implement supply chain management at the same level as machine health maintenance will achieve AI adoption while building a competitive advantage. In an environment of shifting trade policies and volatile costs, that could make the difference between falling behind or setting the pace for the entire manufacturing sector.
Chris Dobbrow is the vice president of business development at Augury.
