AI readiness lags behind consumer shifts

Food and drink manufacturers are facing a widening gap between increasingly unpredictable consumer behaviour and their ability to respond, according to new research from operations strategy and transformation consultancy Argon & Co.
The consultancy’s Operations Outlook 2026 survey of more than 800 C-suite leaders suggests that while artificial intelligence is widely recognised as a tool for improving forecasting and supply chain planning, many manufacturers still lack the data infrastructure and skills needed to deploy it effectively.
The research comes as social media continues to accelerate product demand at unprecedented speed. Viral products such as retailer-exclusive launches and limited-edition food trends can sell out within hours, creating significant forecasting challenges for manufacturers and retailers alike. At the same time, trends around high-protein and high-fibre diets, the growing adoption of GLP-1 weight-loss medications, reformulation programmes driven by health legislation, and increasingly fragmented purchasing channels are reshaping buying habits.
Argon & Co found that 38% of food and beverage leaders cite legacy IT systems as the biggest barrier to implementing AI, well above the cross-industry average of 28%. A further 35% identified shortages in AI skills and expertise, while 31% pointed to poor data quality and governance. Only 28% of food and beverage businesses said they have a clear AI implementation roadmap, compared with 39% across all sectors.
James Watson, partner at Argon & Co, said manufacturers must become better at distinguishing short-lived social media moments from longer-term consumer shifts.
“Businesses need the capability to identify emerging signals earlier, understand which trends have staying power, and translate that insight into faster commercial and supply chain decisions.”
Watson added that today’s manufacturers are dealing with multiple sources of disruption simultaneously, increasing the risk of excess inventory, product shortages and unnecessary waste.
Rather than viewing AI as a standalone solution, Argon & Co argues that successful adoption depends on robust data governance, integrated planning systems and agile operational processes. Manufacturers investing in these capabilities will be better positioned to react quickly to changing demand while protecting margins and service levels.
AI fibre forecasting GLP-1 Operations Outlook 2026 protein reformulation supply chain
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