AI alcohol: Was your beer brewed by a computer algorithm?

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  Quantumrun Foresight
• April 2, 2022

Insight summary

The brewing industry is experiencing a transformation as artificial intelligence (AI) and machine learning (ML) are employed to refine the taste of beers and accelerate the development of new products. This technological shift is fostering collaboration and efficiency within the industry, with tools like cloud technology and the Internet of Things (IoT) enhancing both the brewing process and the customer experience. The long-term implications of this trend include changes in labor dynamics, increased innovation within the craft beer industry, and new regulatory challenges.

AI alcohol context

One of the world's largest and oldest industries, the brewing industry, is being transformed by AI/ML. Breweries have begun to use these technologies to help them refine the taste of their beers. Various breweries across the globe are employing data to guide their beer makers' decisions, aiming to create better beers. In 2016, IntelligentX announced that it had created the world's first beer brewed with the assistance of AI, using feedback from customers to refine its beer recipes.

In Japan, the makers of Kirin in Tokyo have utilized AI software since 2017 to determine the desired flavor, aroma, color, and alcohol content, all to arrive at the perfect beer recipe. Meanwhile, in the US, Deschutes Brewery is employing AI to monitor its entire brewing process, ensuring consistency and quality. This trend is not confined to one region; Copenhagen-based Carlsberg uses advanced sensors, AI analytics, and ML algorithms to evaluate if a small brew batch may hold promise for full-scale development. These sensors can even distinguish between various pilsners and lagers.

The integration of AI and ML into the brewing process is a clear example of how technology is shaping industries that have been around for centuries. By leveraging data and advanced algorithms, breweries are able to enhance the quality of their products and respond more effectively to consumer preferences. This shift in the brewing process may lead to new opportunities and challenges for both large and small breweries.

Disruptive impact 

Among the primary reasons for applying AI to the brewing process is to accelerate the development time needed for new products to reach the market. In the case of Carlsberg, the goal is to map a flavor fingerprint for each sample, reducing the time it takes to develop a new beer. This enables the company to provide consumers with a wider range of distinct beers, catering to diverse tastes and preferences.

Technology has indeed become integral to how breweries operate, fostering collaboration and efficiency. Different laboratories throughout Denmark and Sweden were able to collaborate on the Carlsberg project thanks to technologies like Skype, Teams, and Sharepoint. These tools helped speed up the development process, making it more streamlined and responsive. Additionally, Carlsberg's investment in optimizing its digital infrastructure, including moving 500 servers to the cloud, facilitated a more collaborative working environment. This trend of technological integration may lead to more agile and interconnected operations across various industries.

The application of cloud technology has further broadened the scope of innovation within the brewing industry, introducing concepts like the “connected bar.” This concept uses IoT to provide information to bar owners, helping them better manage their stock and enhance both profitability and customer experience. By leveraging real-time data and connectivity, businesses can make more informed decisions and create personalized experiences for their customers. 

Implications of AI alcohol

Wider implications of AI alcohol may include:

• The need for brewers to update their skillset to work with advanced technologies to enhance the brewing process and develop unique beers, leading to a shift in educational and training requirements within the industry.
• Increased innovation within the craft beer industry due to the continued demand for single, distinctive products that offer increased sensory complexity, fostering a more diverse and competitive market landscape.
• The opening of ever more craft breweries as AI and ML systems can significantly reduce the costs and other barriers to entry associated with alcohol experimentation and production, potentially democratizing the industry and allowing for more localized entrepreneurship.
• The accelerated creation of new beers that cater to every possible taste, leading to a more personalized consumer experience and the potential for breweries to quickly adapt to changing market preferences.
• The development of software-as-a-service platforms that are tailored to specific brewery technicians and that assist them in the application of AI into their operations, enabling more efficient and targeted use of technology within the industry.
• A shift in labor dynamics as automation and AI take over certain manual tasks, potentially leading to job displacement in some areas while creating new specialized roles in others.
• The potential for environmental impacts as the increased production and experimentation with new beer types may lead to higher resource consumption, requiring careful consideration of sustainable practices.
• The possibility of new regulatory challenges as governments may need to consider how to oversee and manage the rapid technological changes within the brewing industry, leading to new laws and standards.
• Changes in consumer behavior and expectations as the availability of a wider range of distinct beers may lead to more discerning tastes and demand for unique products, influencing marketing and sales strategies.
• The potential for economic redistribution within the industry as smaller craft breweries gain access to technologies previously only available to larger companies, leading to a more level playing field and possibly reshaping the industry's economic structure.

Questions to consider

• Will technology, in time, be able to produce higher quality beer than humans?
• How will AI influence the future employment prospects of human workers within the brewery industry?