Food businesses urged to invest in AI, robotics

Food businesses urged to invest in AI, robotics
Food businesses need to ramp up investment in AI and robotics to ensure a thriving and resilient system in the country, a leading economist has said, warning that the food industry is at a pivotal moment, facing unprecedented challenges due to surging labour costs and a growing population. According to James Walton, Chief Economist at IGD, mounting labour costs, climate change, tariffs, and an increasing population are putting immense pressure on the food system’s resilience. The latest IGD Economic Viewpoint Report, “How to respond to rising labour costs in 2025”, released on Tuesday (April 29), highlights a perfect storm brewing in the food system.
Rising labour costs, geopolitical risks, and inflation are creating a challenging environment for businesses and consumers alike. This combination of factors is leading to a highly volatile and uncertain environment, impacting both consumer and business confidence, and affecting operations across the food system.