Agentic AI is here to stay in MENA's foodtech landscape
The food and beverage industry, along with the food technology field, has been ripe for digital transformation for quite some time. The rise of agentic AI is ushering in new developments in a market known for its slim profit margins, evolving customer needs, and complex supply chains.
Unlike traditional automation, agentic AI systems make independent decisions (like us, humans), as well as continuously improve their actions by learning from their environments. The implementation of agentic AI in the F&B sector could be revolutionary, especially in regions such as the Middle East and the United Arab Emirates that are rapidly modernising.
Enhancing Efficiency and Decision-Making
A key benefit of agentic AI is its capacity to automate intricate decisions. Normally, that would require human input. By 2028, it is estimated that 15% of daily business decisions will be made autonomously by agentic AI – this figure signals a shift in how strategic and operational decisions are conducted across various industries.
But how does it work in the F&B sector? The answer lies on the surface. Speaking specifically, AI agents read data and interpret it in realtime. This allows for making informed and timely decisions. For a vivid example, agents can optimise delivery routes, manage inventory more effectively, and adjust food production levels in response to demand. In a smart kitchen, for instance, agentic AI can forecast diner traffic, automate stock replenishment, and adjust recipes based on nutritional objectives and available ingredients.
This is particularly relevant in the UAE, where the government's UAE National Food Security Strategy 2051 is focused on establishing the nation as a leader in sustainable food production. For example, AI-enhanced supply chain optimisation is one way to support the strategy. Plus, this further boosts farm-to-fork traceability, enhances transparency, and reduces food waste.
Unlike traditional software, which follows fixed rules, agentic AI improves its decision-making processes and frameworks. With the help of these agents, it is more straightforward for companies to scale their operations. At the same time, agentic AI also minimises costs and oversight. More often than not, this is considered a competitive advantage in the MENA industry.
Customer Experience and Compliance
In the hotel and gastronomic industries, customer experience is crucial. But how does agentic AI act in this field? First, it communicates with customers through real-time and context-driven interactions. Unlike chatbots that function on predefined scripts, AI assistants can remember customer preferences and respond to their questions accordingly. On top of that, agentic AI can tailor suggestions based on the user's activity. In the F&B industry, for example, many vendors use apps for online orders, similar to aggregators like Deliveroo or Talabat. You might have seen it as "Your Favourite Products" or "Recently Ordered".
Beyond automated customer service, venues leverage this technology to personalise the experience. This is why you can often see content, menus, promotions, and ordering processes that most closely match your preferences. For example, an AI-driven system can notify clients that a favourite item is back in stock by sending a push notification. And if a customer leaves their dietary preferences, agentic AI can also cater to their needs. For instance, it can suggest a dairy-free alternative to a customer with lactose intolerance if it knows the customer's preferences, of course.
Dealing with compliance in regulated industries can be a headache. I've seen agentic AI make a real difference here. For instance, it can sift through protocols, pick up on oddities in food sourcing records, and even flag things that might be signs of fraud. While it's not perfect, having AI double-check the details means people can focus on bigger issues.
So, what's the future of Agentic AI?
The intersection of agentic AI and the F&B industry has led to several changes in the operations, scaling, as well as customer engagement of food enterprises. While certain positions, particularly those centred around repetitive tasks, may face automation, new ones are emerging in areas like digital operations management, data analysis, and AI oversight. Workforce reskilling initiatives, such as the UAE's National Program for AI and Coding, provide upskilling prospects for both local and expatriate workers, aiming to equip the job market for these changes.
Agentic AI also presents new business models (and opportunities) in FoodTech. Innovations like autonomous food trucks, AI-operated cloud kitchens, and highly personalised meal planning applications are just a few examples of this new wave of creativity. The future is already here, and we should embrace it.
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