What's Happening?
Ingredion Inc., based in Westchester, Illinois, is advancing its use of predictive artificial intelligence (AI) tools to accelerate innovation and identify new growth opportunities. During the company's investor day on September 17, executives discussed how these AI tools could potentially transform Ingredion's business model from an ingredient supplier to a solutions provider. Michael O'Riordan, Senior Vice President of Texture and Health Solutions for EMEA and Asia-Pacific, highlighted the company's efforts to connect consumer textural preferences with ingredients using AI predictive tools to develop new formulations. The company is currently running pilot programs to test the speed and effectiveness of these AI-driven recipes, receiving positive feedback from customers. Ingredion aims to monetize this process through consultancy services and ingredient sales, positioning itself as a co-creation partner for companies outsourcing R&D.
Why It's Important?
The development of AI tools by Ingredion represents a significant shift in the food ingredient industry, potentially setting a precedent for other companies to follow. By leveraging AI, Ingredion can reduce cycle times and improve its closed win rate with customers, enhancing its competitive edge. This transition from a traditional ingredient supplier to a solutions provider could lead to increased market relevance and customer loyalty. The use of AI to tailor products to consumer preferences also aligns with broader industry trends towards personalization and efficiency. As companies increasingly outsource R&D, Ingredion's approach may offer a valuable partnership model, driving innovation and commercial growth.
What's Next?
Ingredion is in the early stages of implementing its AI predictive tools and is focused on understanding the resources required for scaling the process. The company plans to continue refining its capabilities in texture science, product development, and food design to strengthen its market position. As the AI tools are further developed, Ingredion may explore additional monetization strategies and expand its consultancy services. The success of these initiatives could influence other industry players to adopt similar AI-driven approaches, potentially reshaping the competitive landscape.
