Food Processors to Mitigate the Risks of the Artificial Intelligence Revolution

Artificial intelligence is increasingly posing operational threats to food processors.

FREMONT, CA: Artificial intelligence (AI) in food processing creates seismic shifts. This industry will grow at a compound growth rate of 45 percent annually from now until 2026, covering everything from sorting to safety and compliance.

The sorting of food and goods is the most significant aspect of the food processing business that AI will transform. Sorting was once an extremely labor-intensive operation requiring enormous amounts of human labor but is now mostly managed by robots that employ technologies such as cameras and X-rays in conjunction with algorithms to assess different features of food and find flaws.

Similarly, AI can enhance food safety. Food manufacturers utilize optical fluorescence imaging and ultrasonic sensing technology to detect food residue on equipment, contaminating a whole product line. Similarly to quality grading, AI technology can guarantee workers wear personal protective equipment, check the temperature, and assess food cleanliness.

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However, as proven by recent shutdowns and supply chain interruptions, AI in food production is not without operational and financial risk.

THE DANGERS OF AI

The AI-based food processing processes are susceptible to ransomware attacks, like any firm relying on data and technology. Cybercriminals can also shut down AI-powered facilities if they access the control system.

Consider JBS, the largest meat processor in the world. In May, a ransomware attack shut down most of the Brazilian company's operations in the United States and some in Canada and Australia. The two-day event destroyed roughly 20 percent of the nation's cattle, pig, and poultry production, and the corporation paid the hackers $11 million in ransom.

These attacks could have a negative effect on customer safety by producing cleanliness and traceability difficulties (such as pathogen contamination and recalls) within the plants.

In 2020, the cybersecurity firm Recorded Future forecasts forty such assaults against the food and beverage industries.

The food business is still playing catch-up to the large IT or financial firms that have previously invested in effective cyber defenses. Nonetheless, the recent attacks on significant manufacturers such as JBS have prompted numerous businesses to seek to bolster their cyber defenses and reduce their vulnerabilities.

External factors cause only some business shutdowns. While technology can boost efficiency and uniformity, it is also capable of malfunctioning and causing significant operational disruption. Nestlé Waters North America (formerly BlueTriton) abruptly halted plant operations when a driverless forklift caught fire while being recharged (according to a lawsuit filed against the manufacturer of the forklifts). Subsequently, the business grounded all 51 vehicles across their plants.

MAXIMIZING AI'S POTENTIAL WHILE MINIMIZING DANGER

Reducing risk while maximizing the benefits of AI in food processing begins with organizational resilience, evaluating internal and external threats to operations, and developing an operational plan that establishes both protections and backups in the event of a breach or equipment failure.

The IT department of a firm must be aligned with operations in using AI, understanding how AI is utilized, and assessing the risk of a data breach, hacking, or AI equipment malfunction.

Getting insurance is necessary to mitigate AI business risks. Although AI has the potential to lower coverage costs because it can be used to perform predictive maintenance and determine when equipment requires repair, it is vital to select the appropriate coverage. In some instances, product liability, general liability, property, and other policies may cover artificial intelligence.

In certain instances, insurers may request access to the refrigerated temperature sensors of a food processor to confirm the equipment's viability in real time. This type of information accessibility increases underwriters' confidence in risk. Working with a broker with expertise in agribusinesses and AI will allow a firm to accurately analyze a company's risk.