Danone and Microsoft to collaborate on AI to boost operational efficiency

05-Aug-2024 - Last updated on 05-Aug-2024 at 11:16 GMT

Danone plans to utilise AI to optimise operational efficiency. Image Source: Getty Images/da-kuk

In order to improve its operational efficiency, dairy major Danone has enlisted Microsoft. The two companies will collaborate to implement AI in Danone’s systems.

Artificial Intelligence (AI) is revolutionising a range of fields, from coding to copywriting. It is no different in the food industry.

French dairy major Danone is collaborating with Microsoft to incorporate AI into its operating systems. As well as focusing on employee training, Danone aims to use AI as a way to increase operational efficiency and boost research and innovation (R&I).

How is AI already used in Danone?

In R&I, Danone has already been using AI for some time. In digital health solutions, for example, the dairy major has been utilising AI for several years.

This use is only growing. “Today, we are experiencing an increase in AI use cases to support our innovation model in all R&I domains; consumers insights, in silico modelling, and new horizon in gut health to list a few,” a Danone spokesperson told FoodNavigator.

How will AI be used to boost operational efficiency?

Danone aims to use Microsoft’s AI to boost operational efficiency in its supply chain and logistics, and even boost manufacturing.

For example, the company is integrating AI into its demand forecasting, aiming to improve the accuracy and efficiency of its supply chain whilst at the same time reducing environmental impact.

In logistics, AI is also important. “A productivity and effectiveness use case is currently taking place, which uses Gen AI to integrate the most important procurement data points across several commercial and procurement platforms, generating more complete and enhanced contracts, vendor performance and spending insights to enhance logistics.”

Finally, AI will be used in manufacturing in several factories to carry out preventative maintenance of lines and enhanced performance analytics. Generative AI (chatbots) will be used to communicate with operational data.

How will AI be used to free up employees?

Microsoft will also utilise digital twinning. This is when a digital copy of a physical asset is created, using smart sensors to collect data of the product. This, the spokesperson told us, will ‘assist data-driven decision making’ in procurement, production and distribution systems, thus freeing up employees to focus on the more creative and strategic aspects of their roles.

The company has already deployed Microsoft Copilots to 50,000 employees, and Copilot for Microsoft 365 to 1,000.

Why Microsoft?

Microsoft are at the forefront of AI innovation in many ways. For example, its longstanding collaboration with Open AI, the producer of ChatGPT, has given it a significant vantage point in the industry.

Danone has decided to collaborate with Microsoft to implement AI within its systems. Microsoft’s “extensive experience in AI promises the development of innovative solutions. Microsoft brings valuable knowhow, cutting-edge technology and industry use-cases, and will assist in the best practices around ways of working to bring our workforce up to date to help Danone stay in touch in this fast-changing environment,” Danone’s spokesperson told us.