From Gut Feel to Smart Brewing: Improving Efficiency With AI Without Losing Control of Risk
As profit margins shrink and competition balloons, even master brewers can no longer rely solely on instincts. Artificial intelligence (AI) can improve operational efficiency, but as with every technology, it can take a little time to strike the right balance between skills, science and risk.
The market is flooded with AI tools. Some are specifically manufactured for brewers, others for more generic applications. As with any saturated market, avoid making assumptions about capabilities, price and operational viability. It takes time to evaluate each product against the needs of your operations.
This article explores the most important categories and risks to help narrow it down.
Tame Your Fickle Fermentation
AI Benefits: Fermentation is both unpredictable and time-consuming. Even if you love the hours spent observing, sampling and tinkering, not everyone has that kind of time to devote to the process.
Today’s AI-based monitoring tools can peer inside a closed tank and monitor the fermentation process in real time. For instance, smart sensors can provide insights into variables like temperature and dissolved oxygen. These tools can improve the beer’s taste, and cut down on wasted time, money and energy. They can be especially helpful if you’re expanding a product line because they can spark innovations without the endless experimentations.
The Risk: It can be a slippery slope to set up smart sensors. You or your staff can end up deferring to the data at all times, which can ultimately cause your product to lose its personality. Sensors should augment your experience and gut instincts as opposed to replacing it.
Streamline Your Quality Control
AI Benefits: Better quality control can insulate your business from multiple threats. AI technology can detect trends and anomalies that lead to complaints and regulatory violations. For example, AI might spot bacterial inconsistencies between two otherwise identical batches.
AI can help you organize, verify and manage your data. This way, you won’t have to spend time rustling up proof or arguing with officials. (Think of how much smoother an audit will go when you have all that information carefully catalogued and at your fingertips!)
Moving away from manual logging doesn’t need to reduce your staffing levels either. With AI, your team has more time to create a truly great product rather than handwriting endless numbers that no one ends up looking at anyway.
The Risk: Remember, you still need strong ownership if you set up AI monitoring tools. Should the sensors make an error, there needs to be a clear chain of command, protocols to analyze the data and detailed recommendations based on common QC debacles (e.g., recalls, etc.).
Run Floors Like Clockwork
AI Benefits: Even small production floors can experience major friction, especially if you’re still logging everything by hand. If everyone’s not on the same page, a single misinterpreted data point or sick day can throw everything into chaos.
AI can capture data in real time, reducing administrative work without sacrificing visibility. You get accurate, comprehensive data, stronger communication between teammates/shift leaders and more informed decisions across the board. Remember: Even small efficiency adjustments will add up over time.
The Risk: More data isn’t helpful unless you have a way to put it in context. If you invest in AI tools, make sure to invest in ones that can analyze the data and turn it into a memorable (and accurate) story.
Improve Your Forecasting
AI Benefits: Forecasting is tricky for large and small companies alike. AI helps you better align production with sales and gives you more insight into future projections.
The Risk: It’s easy to overestimate a forecast’s accuracy, especially if it’s favorable. Market conditions and consumer behavior are not always predictable and will always require constant oversight and adjustment.
Capitalize on R&D Tax Credit Opportunities
AI Benefits: Research & Development Tax Credits incentivize innovation, and many businesses qualify for these credits without even realizing it! If you’re developing new recipes, testing better fermentation processes, improving your packaging/shelf life or integrating new production system efficiencies, say with the help of AI tools, you may be able to offset costs through the credit.
The Risk: Because the category is so broad, submission requirements are stringent. You’ll need consistent, detailed records to be considered. Ideally, you’ll prioritize your quality control process whether you receive the credits or not. This way, it’s just a matter of submitting what you have rather than scrambling to find the numbers.
Learn More About Leveraging AI in Your Brewery
If you’re feeling overwhelmed, use these simple steps to get started:
- Name your biggest challenge, such as lack of visibility.
- List the available data vs. what you need. Maybe you know that your batches are inconsistent, but you’re unsure whether it’s due to an unpredictable temperature or excess yeast.
- Start small and scale up. Try smart sensors on one batch and compare the batch to your standard brewing process. If you’re seeing better results with better monitoring, you can always add new sensors.
These steps may seem self-explanatory, but they’re a proven way to stop you from going too hard too soon. (That’s a good way to lose money and your sanity.) Just remember that AI tools do not relieve you or your staff from ownership and that more data does not automatically lead to better outcomes. You still need oversight, processes and internal controls if you want a steady, stable product.
AI won’t take over the brewing process but rather will strengthen your natural craftsmanship. Once you’ve assessed what you’re looking for, you can evaluate the data you need and how to leverage the available tools to improve operations and innovation.
To learn more, contact your Warren Averett advisor directly, or ask a member of our team to reach out to you.
