Where brands should focus their AI strategy now

As algorithms take on a bigger role in food decisions, brands may need to rethink where, and how, they show up.
As algorithms take on a bigger role in food decisions, brands may need to rethink where, and how, they show up. (Image: Getty/Kwangmoozaa)

AI’s real value may lie in helping consumers choose – not discover

While the industry is racing to experimenting with how AI can improve their business, the biggest opportunity to connect with consumers isn’t aspirational – it’s rational, according to Hartman Group’s latest white paper, The Practical Future of Food Tech.

Although omnichannel is inspiring consumers’ food choices, their purchases ultimately are dictated by cost, time and mental effort. That tension defines where brands should focus first, according to Shelley Balanko, SVP, Hartman Group.

At the core is cognitive overload for consumers facing myriad product choices each day. The report argues consumers face “too many product options,” “conflicting health advice” and “inspiration overload,” all of which contribute to decision fatigue, according to the report.

Balanko underscores this cognitive overload as the first entry point for AI. “Consumers expressed overwhelm with the vastness of food-related information online combined with a lack of trust in that information,” she said.

For brands, information is not a discovery problem, it’s a filtering problem. As AI mediates more decisions, discoverability is changing – meaning brands must rethink how they show up, particularly as generative engine optimization (GEO) and answer engine optimization (AEO) will further streamline searches into one answer on AI platforms.

“Brands need to market to AI as much as they market to human consumers or they will be at risk for falling out of the consideration set,” Balanko said.

At the same time, trust remains a guardrail. “Privacy and agency are consumers’ main concerns,” she notes, adding that AI works best when users feel in control of their data and decision-making.

Close the gap between inspiration and execution

Hartman’s research highlights a persistent “tension between aspiration and practicality” in how consumers engage with food. Social platforms and digital tools may drive discovery, but everyday routines determine what they actually buy and eat.

The most effective AI applications are those that remove steps between those two moments – such as tools that move consumers directly from idea to basket. For CPG brands, that means showing up where inspiration already exists, according to the report.

As Balanko notes, “brands that make it easy for consumers to purchase within existing apps that are sources of inspiration is a good path forward since it requires no behavior change from the consumer.”

Success will depend less on building new destinations and more on enhancing existing ecosystems for the consumer.

Prioritize unmet needs – not futuristic ones

Consumers already use technology heavily for practical tasks, with 80% using it to plan trips and 36% using it to compare prices while shopping, according to Hartman Group.

But gaps remain. One of the most promising areas is personalized nutrition, which has been held back by cost and accessibility.

“AI could support personalized nutrition needs within apps that are currently focused on planning and procurement,” Balanko says.

Ultimately, the next wave of applications is not standalone platforms, but enhancements layered into existing behaviors, she said.

Below this broader principle of tech use, AI should enhance convenience, not complicate it. The report emphasizes that AI’s strength lies in reducing friction – whether that’s time, effort or complexity.

Defining brands’ role in the ecosystem

While retailers and foodservice operators are leading AI deployment, where they benefit from real-time data and controlled environments, CPG brands face a more nuanced decision, according to the report.

Balanka emphasizes a mixed strategy for brands to connect with consumers via AI given the cost, complexity and uncertain expectations on their bottom line.

“Building AI capabilities for innovation and operational efficiencies is necessary … and partnerships with retailers can only strengthen existing relationships, but for consumer-facing initiatives it might be best to wait and learn from others’ experiments,” she said.

Ultimately, AI’s biggest influence may be on how consumers define value and convenience. While quality remains grounded in everyday experience, AI’s potential to reshape convenience will be key to premium positioning.

“AI has the greatest potential to influence the dimension of convenience … consumers express a willingness to pay more for personally relevant conveniences,” Balanko said.