AI helps grocery stores reduce food waste, but strains food banks

Grocery stores are increasingly using artificial intelligence to cut food waste, with tools that predict demand and manage inventory more efficiently. These technologies have helped reduce food waste by over a third in some cases and prevented more than 200 million pounds of food from being discarded. Companies like Afresh and Guac offer AI-driven ordering systems that help stores avoid overstocking and sell perishable items before they expire. Dynamic pricing strategies, supported by AI, have also been shown to cut waste by up to 21%. Some apps connect consumers with last-minute deals on expiring food, further reducing waste. However, food banks are reporting a decline in donations as stores become more efficient. Joseph Slater, chief operations officer at Gleaners Food Bank of Indiana, notes that the food supply is tightening while demand for charitable food is rising. As a result, food banks are now spending a larger portion of their budgets on purchasing food rather than relying on donations. In 2018, only 16% of Gleaners’ charitable donations went directly to buying food, but this year, 50% of its budget will be allocated to food purchases. Meanwhile, meat producers who previously donated surplus food to food banks have slowed production and found new markets, such as exporting chicken drumsticks overseas. Farmers are also using software to better predict demand, influencing crop planting decisions.