How AI will boost FoodTech?

Published on February 11, 2025

Today, we’ll have a look at where Artificial Intelligence makes sense and how it is used alongside the agrifood value chain. I don’t think there is anything more “hype” right now than Artificial Intelligence, with everybody experimenting with new models such as DeepSeek or fun apps such as Picsart. However, in our area of focus, agriculture and food, pinning down where AI is meaningful can be challenging. Indeed, while there is no clear “killer” use case, you can use AI for everything from precision farming to creating new marketing campaigns.

As shown in the mapping above, at least 12 domains exist where we observe intersections between AI and the AgriFoodTech innovation ecosystem. We can group the applications in four main blocks:

1 – AI in Agriculture

AgTech is the ecosystem with the longest history with artificial intelligence as it has been used for a long time in:

🤖 Automation, notably in robotics, has been using machine learning techniques for a long time. One example is weeding, where image recognition is used to recognise weeds to eliminate.

🚜 Precision farming and the development of tools to help farmers monitor the health of their soil and animals. Current improvement in large language models (LLMs such as ChatGPT) enable a whole new category of players to develop tools that make farm management easier.

Crop optimisation and the development of new crops are categories where applications of AI are more recent and where it helps startups such as Inari or Pairwise reduce the time it takes to bring optimised crops to the market.

2 – AI in food product development

In food development, if we exclude the last part more related to marketing, there are four big categories:

💡The generation of new concepts or ideas, validated by “AI panels” (such as the ones developed by FoodPairing) and consumer insights gathered automatically from thousands of sources.

🏗️ Product development assisted by AI is maybe the space where we see the largest amount of communication, notably from large companies (such as this example by Unilever). AI seems to be mostly used to reduce the number of prototypes to experiment with when looking to achieve specific functionalities, notably in the case of plant-based ingredients.

🔍Protein discovery & protein design: one of the new “hot categories” we identified in our recent trends report. Many startups such as Shiru leverage AI and large databases of natural compounds to identify proteins with interesting properties (sweetener, fats, caseins…).

🧪Bioprocess optimisation: companies using AI to find the right parameters to scale bioprocesses used in precision fermentation and cellular agriculture.

AI in retail

Beyond automation (and the development of robots, which is moving much more slowly than in agriculture), the main applications are mostly leveraging machin learning techniques rather than more recent AI developments. It’s mostly a question of data analysis for prediction for sales for foodservice (how much croissants should I bake today to avoid waste and optimise sales?) as well as retail (how much avocados to order for my grocery stores for the coming week?). A more recent application category would be food safety with startups such as Spore.bio using AI to detect pathogens in CPG factories.

AI in the relationship with the consumer:

📺 Marketing: that’s the most straightforward way for companies to engage with AI, even if it is not through tools explicitly developed with food applications in mind. Recent examples include the developments by Coca-Cola of a new can design through AI or a Christmas TV ad made with AI.

🧬 Personalised nutrition: with the emergence of large language models such as ChatGPT, many things that were impossible before are now becoming possible. With these models, it is now possible to create engaging and personalised experiences with consumers based on their diets, goals, and eventually some external data (biometrics, DNA, microbiome… Due to the LLMs’ unpredictability (i.e., their “hallucinations”), we still see very few companies attempting to advise based on them. This is, however, the space I get the most excited about. With more precise image recognition (to measure what you are eating in a snapshot) and more accessible biometrics devices (i.e. Apple’s watch and its competitors), personalised nutrition could finally move forward.

Now, what’s next?

First, if we look at the different categories, there is one common theme: data. The more data you have, the best you can be to create new crops, create new products, generate concepts, create new proteins… And in many instances, who has the best data? The existing crop, ingredient and CPG companies. Beyond the fact that it has become urgent for agrifood companies to structure their data, we should look at the partnerships announced between giants and startups to see which companies could be tomorrow’s AI for food leaders.

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Use case: project for a global F&B company looking to map its AgTech innovation ecosystem and the best startups to partner with

What we did:

  • Mapping of the AgTech ecosystem: startups, research regulators, and other leading companies.
  • Discussion to select areas to focus on.
  • Analysis of the information to reveal the trends and a model to analyse eventual partners.
  • A workshop to validate the opportunities based on our recommendations.
  • Scouting of relevant partners followed by introductions.

Results:

  • Mapping the different categories of innovations in AgTech that should be considered now to create long-term benefits for the business.
  • Identification of key partners (an incubator and a couple of startups).

Use case: project for a CPG company on the healthy ageing ecosystem

What we did:

  • Education of the board through a couple of workshops to define the perimeter
  • Identification of key opportunities and threats created by long-term evolutions (technologies, business models, behavioural changes).
  • Deep dives on each of the priority categories.
  • Co-construction of a vision on how the company should address these challenges.
  • Identification of partners (startups, incubators, funds) to move forward.

Results:

  • Creating a consensus on which categories to prioritise and how to address them.
  • Implementation of an open innovation strategy through the development of partnerships.

Use case: project for a global CPG company to develop a strategy on the healthy ageing ecosystem

What we do (ongoing mission on a subscription model):

  • Kick-off where we present an overview of the AgriFoodTech ecosystem to select with the client the categories to cover and for each, the level of information required.
  • Monthly newsletter: each month we send a newsletter with the articles that we have gathered ranked by relevance, their summaries, and a layer of analysis.
  • Database: we set up a personalised database that will be filled month after month with the information gathered on the companies identified for the watch.
  • Workshops: twice a year with the client’s innovation team and other “innovation curious” team members, we present an overview of the evolutions, key trends and a dashboard of the topics followed by the watch.

Results:

  • A clear, regular and evolutive tool to follow what is happening in terms of innovation on key topics.
  • A forum (through the workshops) to discuss innovation trends and new opportunities.

Use case: opportunity screening for an ingredient company

What we did:

  • Kick-off to define the perimeter of the ecosystem studied.
  • Mapping of the different trends shaping the innovation ecosystem of the client.
  • Analysis of the trends on DigitalFoodLab’s trend curve and other relevant frameworks.
  • Workshop to discuss DigitalFoodLab’s recommendations on key trends to prioritise

Results:

  • Shared view of the innovation ecosystem for the client with a view of the trends to prioritize.
  • Clear document (personalised trend curve) that can be easily shared internaly to explain the company’s innovation choices and which can be then updated each year.

Use case: scouting for an agriculture coop

What we did:

  • Kick-off to define the perimeter of the client, the goals of the scouting (partnerships) and the criteria on which startups should be evaluated.
  • Set-up scouting: we selected the first batch of 20+ key startups following the criteria of the client.
  • On-going scouting: then we set up a quarterly scouting of about ten startups.
  • For each scouted startup, we created an ID card with key information such as the business and technological maturity, funding, and corporate partnerships. We also added an explanation of why we selected this startup.

Results:

  • An ongoing and evolutive scouting are matching the client's criteria and its capabilities in terms of deal flow.

Use case: working on an acquisition process for a CPG company

What we did:

  • Kick-off to define what the client is seeking, notably in terms of maturity.
  • Workshop with the client based on a mapping of the different innovation ecosystems adjacent to its activities to select some priorities and discuss inspiring examples of startup acquisition stories.
  • Identification of 20+ targets.
  • Workshop to select the most relevant to engage with.
  • DigitalFoodLab worked as a sparing partner during the acquisition process, notably to help design how the acquired startup could be integrated into the overall company’s strategy.

Results:

  • Different results from traditional M&A processes with a focus on the client’s innovation strategy.
  • Identification of a good match for an acquisition.

Use case: market due diligence on sugar alternatives

What we did:

  • Kick-off with the client to discuss its interest on this category, its expectations and existing level of information (notably on the target company).
  • Mapping of the ecosystem to analyse the different existing alternatives and technologies to compare them.
  • Interview (calls) with relevant startups made by our internal biotechnology expert.
  • Recommendation on whether to invest or not.

Results:

  • Clear view of the ecosystem and of the reasons to believe (or not) in each sub-category.
  • Enforceable recommendations based on facts and expertise.