Provi delves into the details of how AI is impacting the beverage alcohol industry, bringing efficiency through new tools and technology.
Right now, the topic of AI is everywhere and the alcohol industry is no exception. AI might not be able to mix the perfect martini or chat with your regulars, but it could already be working behind the bar and across your business to streamline operations. From automating those tedious daily tasks to helping you stay compliant with tricky regulations, AI is proving to be a capable extra set of hands.
The Provi team recently attended the NCSLA’s North-South Regional Conference in Vermont, which focused on innovation in the evolving alcohol industry. The conference kicked off with a panel discussion addressing the impact of AI in the alcohol industry, moderated by Provi’s SVP of Industry Affairs, David Wojnar. In this article, we’ll touch on topics presented by panelists from across the industry (Provi’s Senior Marketing Manager, Katherine Arts; Vermont's Chief Data and AI Officer, Josiah Raiche; and Diageo's VP & Associate General Counsel, Margaret Lu) to explore how AI can make running your business smoother, smarter and just a little bit easier.
What is AI, and what does it mean for the industry?
Artificial intelligence (AI) is like having a super-smart assistant manager that helps bars, restaurants, and retailers run more smoothly. It can track your inventory, predict what customers may want to buy next and even suggest personalized product recommendations, all based on data. Think of it as a tool that helps take the guesswork out of managing stock, marketing to customers, and staying on top of trends. With AI, you can focus more on running your business while letting tech handle the behind-the-scenes work!
Or at least that’s what ChatGPT said when we asked it to write this definition…
To make the definition more practical, Josiah Raiche, Vermont’s first-ever Chief Data and AI Officer described AI as a power tool. Yes, you can build a lot with just a hammer, but things will go much quicker and easier if you give that hammer some extra juice. By trade, Raiche is well-versed in the world of regulating robots. However, he agrees that they are not here to replace humans; instead introduce greater efficiency by taking on what he calls the drudgery, time-consuming manual work required to run a business.
Your Secret Ingredient for Streamlining Operations
Let’s face it: running a business in the alcohol industry comes with its fair share of headaches. From ordering and inventory management to tending to customers' needs, it often feels like there aren’t enough hours in the day. However, we no longer have to imagine a world where robots are here to help, that future is; that AI-powered tech tools already exist to take on tedious tasks like tracking inventory where systems scan product labels, record stock levels in real-time and even suggest when to reorder.
This kind of technology mitigates some of the risky pitfalls and biases associated with AI and biometrics, such as facial recognition and theft prevention. However, VP and Associate General Counsel for Diageo Margaret Lu cautions against letting these tools go unchecked without human safeguards to protect the integrity of your business. With all the time you save implementing AI to assist with administrative work, you’ll have more to focus on curating a cocktail menu or stocking shelves with products that wow customers rather than chasing down suppliers.
Serving Up an Enhanced Customer Experience
Speaking of your customers, we know that delivering high-quality service stands at the heart of the hospitality industry. Research shows that 80% of consumers are more likely to make a purchase when offered a personalized experience. Whether it’s taking the time to find the perfect bottle of wine or going the extra mile to celebrate a success, people power our industry. But let’s be honest: doing that for every customer—especially as your business grows—can be challenging.
That’s where AI comes in. While it may not have the charm of your best bartender, AI can help personalize the customer experience in ways that weren’t possible before. By analyzing customer preferences and purchase histories, AI can offer tailored recommendations. For example, Diageo recently released an AI-powered What’s Your Whisky tool to help identify a customer’s palette and preference. A short quiz analyzes answers against large datasets allowing for personalized recommendations. Lu noted that some of the insights might surprise you, like those who say they enjoy smokey flavors and likely prefer more fruity whiskies. Tools like these are like having a mind reader on staff who’s always one step ahead.
Tech tools like Provi already use AI to power things like customer support chatbots, which offer faster response times, and provide personalized product recommendations based on customer buying patterns. This not only helps your business stay ahead of trends but also keeps customers coming back for more of what they love.
Avoiding Regulatory Compliance Mix-Ups
When attending a conference dedicated to alcohol compliance, it is hard to ignore the fact that our industry is a maze of rules and regulations. Staying compliant can become a full-time job and for many in attendance, it is. However, for those busy managing bars, restaurants and retail stores spending even a spare moment buried in paperwork is a bit of a buzzkill. Fortunately, AI is also making its way into the alcohol compliance world.
Lu listed states like California actively signing AI legislation into law, signaling that this new technology is here to stay. Maryland is already putting AI to use in places like their website to make the process of acquiring a license more straightforward. AI systems can automatically monitor regulatory changes across different regions, ensuring your business stays up-to-date with the latest laws. It can also streamline the submission of compliance reports and reduce human errors. Think of it as having a compliance officer who works 24/7 and never gets tired.
What is AI, and what does it mean for the industry?
The bev-alc industry might be steeped in tradition, but that doesn’t mean it’s stuck in the past. With so many practical uses for AI from drafting menus and bottle lists to making compliance more clear there are endless opportunities for beverage businesses to become technology leaders. That means AI sommeliers, and sophisticated sales tools that can anticipate what your customers want before they do. In a world where staying ahead of the competition is key, adopting AI now means setting your business up for long-term success. The future is here—and we’ll raise a glass to that!
We would like to thank our partners at NCSLA, Commissioner Wendy Knight and her team, for hosting this panel and allowing Provi to bring this discussion to the stage.
Comments