Nestlé’s best uses AI to optimize supply chains and cut carbon emissions

Nestlé, the world’s largest food company, is deploying artificial intelligence across multiple business operations to optimize demand forecasting, recipe development, and sustainability initiatives. The Swiss multinational is using AI not as experimental technology but as productive systems that deliver measurable results in supply chain management and environmental tracking.

What you should know: Nestlé has moved beyond pilot projects to implement AI systems that actively improve business operations and sustainability efforts.

• The company uses AI to predict container arrival times at ports, create statistical forecasts, and enhance demand planning accuracy.
• Machine learning models analyze historical research and development data to accelerate product development and idea generation.
• AI-powered vision systems in manufacturing help minimize waste and improve energy efficiency.

The sustainability angle: Environmental commitments are driving some of Nestlé’s most ambitious AI applications, targeting carbon reduction across complex agricultural supply chains.

• “We’re currently exploring how AI models can optimize carbon tracking across complex agricultural supply chains to enable smarter procurement decisions and reduce emissions at scale,” says Luca Dell’Orletta, global head of tech innovation and enterprise architecture at Nestlé.
• The technology supports regenerative agriculture initiatives and innovative packaging development.
• AI amplifies existing sustainability efforts rather than replacing traditional environmental practices.

Why human oversight remains critical: Despite AI’s speed in generating content and concepts, Nestlé maintains strict human-in-the-loop systems to prevent cultural missteps and algorithmic bias.

• Food products carry cultural significance and emotional connections that vary dramatically across regions.
• “And we can only warn against leaving algorithms to manage creative tasks without supervision,” Dell’Orletta emphasizes.
• The company addresses bias concerns in product testing and consumer research, particularly when datasets don’t reflect global consumer diversity.

The bigger picture: Nestlé’s approach reflects a strategic shift where AI becomes core infrastructure rather than an add-on technology.

• IT decision-makers now function as growth drivers and data guardians rather than just technology partners.
• Success depends on acquiring talent, establishing governance, and encouraging experimentation aligned with brand values.
• “We believe food companies that embrace AI as a core competency rather than an add-on will ultimately win,” Dell’Orletta notes. “It’s not about who automates fastest, but the ability to rethink things and embrace new ways of working.”