Guest Columns

Perspective:
Dairy Technology

Is AI in processing just old software with a new name?

Tara Buchler

Tara Buchler is the senior director of Redwood Advisory at Redwood Logistics, North America’s leading open fourth-party logistics (4PL) provider. She is a guest columnist for this week’s issue of Cheese Market News®.

Every earnings season brings another wave of headlines attributing food and beverage production gains to artificial intelligence (AI). Stock prices react, press releases multiply and processors are told that a new era of automation has arrived. Yet a closer look at what is actually being described often reveals something less revolutionary: optimization logic, batching rules and automated decisioning that plant control and enterprise resource planning systems have used for three or four decades, now marketed under a label that happens to sell better than it used to. Recent industry survey findings from supply chain and logistics professionals suggest this confusion is widespread across food and beverage supply chains, too: 55% of respondents classified traditional rules-based automation as AI, while 27% said AI was embedded in software they already use but they don’t know what technology is actually underneath.

This is not an argument that artificial intelligence lacks value in food and beverage production or supply chain operations. Agentic tools and machine learning are producing real gains in specific, well-scoped use cases, including vision-based quality inspection on the cheese line, demand forecasting and batch traceability from vat to aging room. The concern is that some industry conversations fail to distinguish between genuine innovation and long-established automation, leaving plant and supply chain executives to make investment decisions without enough clarity to evaluate what they’re actually buying.

• The optimization engine behind the new label

Plant control and batch management systems have relied on deterministic, rules-based logic for generations.

A batch enters certain parameters; the system applies fixed rules and an outcome is produced that a human can trace step by step. That is not AI in the modern sense. It is heuristic software, and it has quietly underpinned production scheduling and ingredient handling for as long as most people working in the industry today have had a career. These capabilities remain essential to modern food and beverage operations, but calling them “AI” does not make them fundamentally different technologies. That distinction matters because when buyers and sellers define AI differently, meaningful comparisons become nearly impossible.

Organizations may believe they’re investing in advanced AI when they’re actually purchasing enhanced automation, making vendor evaluations and industry benchmarks increasingly difficult to interpret.

When a vendor describes automated scheduling or exception handling as an AI capability, the first question a buyer should ask is what specifically is new about the underlying method, and whether the outcome differs meaningfully from what deterministic optimization already delivered. Food and beverage companies depend on cold chain and distribution partners just as much as on plant technology, and industry coverage of last mile delivery platforms illustrates the same gap. One recent analysis of last mile delivery technology found that most AI-enabled platforms on the market today are still legacy systems with AI modules layered on top, rather than systems built natively around machine learning. The analysis noted that the distinction shows up in whether a platform actually learns from each shipment or simply applies the same rules as before.

• Reading into the reality

One logistics provider that moves freight for food and beverage shippers offers a useful case study, not because its results are illegitimate, but because its public disclosures show how difficult it is to separate genuine AI-driven improvement from operational discipline that predates any AI label. The company reported that its Lean AI approach increased productivity by more than 40% and automated millions of shipping tasks since 2022, and it has also disclosed that 95% of checks on missed less than truckload pickups are now automated, saving hundreds of hours of manual work per day. Fortune reported that the company’s AI agents now deliver freight quotes in roughly 31 seconds, a process that once took a human specialist about 20 minutes.

Those are genuinely impressive operational numbers. They also show why food and beverage buyers should ask vendors what role AI played in producing those results. The survey found only 11% of organizations establish measurable AI success criteria, while just 3% evaluate outcomes against the original business case.

Without measurement, it is difficult to separate AI-driven gains from improvements achieved through process redesign, automation or operational discipline.

Freight brokers have automated quoting and exception checks for two decades using conventional software, raising the question of how much improvement comes from new agentic methods versus process redesign and operational changes that would have occurred regardless of the technology label. FreightWaves has reported that the company’s workforce declined steadily over the past two years alongside its automation push, which raises a fair question for any food and beverage shipper evaluating a similar vendor claim: Is the metric measuring a new capability, or measuring the removal of people from a process that software already handled?

• What the robotics headlines leave out

A similar pattern shows up in coverage of robotics and physical automation in cheese and dairy processing. Packaging, palletizing and case-handling robotics on cheese and dairy plant floors are mature, well-documented technology. The overwhelming share of newer robotics investment and media attention, however, is concentrated further downstream, in distribution, inside warehouses and fulfillment centers, where automated sorting, picking and micro fulfillment have advanced meaningfully. Physical automation on the transportation side, moving product from plant to shelf, by contrast, remains minimal and geographically constrained, an important caveat for cold chain logistics in particular. Autonomous trucking pilots exist, but they are concentrated in limited corridors and favorable climates, and market research on autonomous last mile delivery still describes the segment as early stage, with most deployments confined to short-range, low-complexity routes rather than the full breadth of a national freight network. Coverage that treats last mile automation as a uniformly arrived capability tends to gloss over how narrow the actual physical footprint remains.

• The questions worth asking

None of this means food and beverage companies should dismiss AI investment. It means the burden of proof should sit with the vendor, not the buyer. Before treating a capability as new, a processor can reasonably ask what specifically has changed in the underlying method, what outcome improved and by how much, and whether that outcome could have been achieved through existing deterministic tools with better configuration and oversight. Asking those questions does not require deep technical expertise. It requires treating every AI claim with the same scrutiny that any other operational investment would receive. That discipline is especially important given that 78% of organizations pursue AI without a formal strategy and 85% select AI opportunities without a consistent evaluation process. Without clear governance and measurable objectives, organizations risk confusing familiar automation with genuinely new capabilities.

The industry does not need less enthusiasm for AI. It needs greater precision about what the term actually describes, so that the capital being spent on it goes toward capability that is genuinely new rather than a familiar tool wearing an unfamiliar name.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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