By Ben Allen – CEO, BinSentry
Is artificial intelligence (AI) “wildly underhyped”?
Former Google CEO and chairman Eric Schmidt seems to think so.
In a recent interview on TED Talks Daily, Schmidt discussed why everyone will need to engage with AI technology in order to remain relevant.
He’s right. And for ag businesses, where margins are extremely thin, it’s do or die.
Those who hesitate will be left behind
From Day 1 at BinSentry, I’ve been focused on helping agriculture industry leaders understand this: the companies that are embracing AI will have a huge operational advantage over those that don’t.
Those that hesitate will get left behind.
The reality is that companies that are adopting new technologies, especially AI, are starting to have different P&L (profit & loss) results than the companies that are just staying with their old processes.
Adopting AI will move your EBITDA in the right direction – the question is by how much? Even traditional enterprises that don’t appear to fit the typical tech company profile are being rewarded by the stock market for their successful innovation strategies.
De-risking AI adoption
Among the biggest challenges enterprises have with tech adoption is denial about its impact and intimidation around how to evaluate and implement the tech.
And I get it: it’s expensive when you’re running at scale. The magnitude of change can be overwhelming, especially when adopting new tech solutions that will fundamentally change how you run your business.
The easiest thing to do is to not change, just watch and maintain the status quo.
But with AI, you can’t afford to wait. If you do, someone else will eat your lunch.
So how do you get started? How do you de-risk AI adoption and set yourself up for a successful outcome?
Here are some key things to consider when implementing AI solutions:
- AI evaluation doesn’t fit the standard Technology Adoption Model
Incorporating AI technology into your business isn’t the same as shopping around for a new software product. It’s not enough to identify a problem, then find a product that might fix it. AI technology is advancing so fast that the question you need to ask isn’t simply “What can AI do for my business?” but “What can AI do that I’m not even aware of?” The answers will surprise you.
- Look for proven examples of success
To start to understand how AI could be deployed in your business — from automating workflows to processing vast amounts of data — identify companies that are using it successfully. What tools and/or vendors are they choosing? Who is leading the way? In what situations or use cases are they adding value with AI?
- Build a sandbox where you can play and experiment
In the IT world, a sandbox is a safe, isolated environment where you can test new software or technology without harming the main system or network. For example, a BinSentry pilot project might involve 100 bin monitoring systems in a safe, affordable experiment for a client to test drive the platform and see the ROI before scaling up and buying 1,000 or more units across their operation.
- Assign the right people to your AI project
A major barrier for non-tech companies, especially in the ag sector, is that they’re just not set up to evaluate new technologies efficiently and effectively. A larger business might have an in-house innovation team, but do they have the AI skill set required to move fast enough?
Consider bringing in outside AI expertise to drive the project forward. If you expect your in-house team to spend time learning all about AI, then take a couple years to evaluate your options, you’re already dead in the water. You won’t be able to move fast enough.
- The easiest thing to do is to not change. But it will cost you.
Doing nothing is tempting, until the status quo is creating enough pain that you have no choice but to take action. Leading companies like HANOR and Wayne-Sanderson Farms initially had no way to gauge how much improved inventory management practices could help their bottom line until BinSentry showed them the data. Now they’re valued customers.
AI and the future of food production
BinSentry is an AI company at heart, though our roots are in agriculture. AI is baked into the sensors and software that we develop for our customers. Our software engineers are hardcore mathematicians uniquely equipped to help the industry solve its toughest supply chain challenges.
Animal feed is the single biggest expense for swine and poultry producers. BinSentry has proven we can cut that expense by multiple percentage points within six months.
In this commodity business, where margins are already razor thin, AI technology is already making a huge difference in terms of financial return, productivity, safety and more. It’s revolutionizing the way business is done — smarter, better, faster — and the only way to capitalize on that change is to be part of it.
