How the Spirits Industry is Evolving with AI
A common misconception is that Artificial Intelligence (AI) is a recent development. In fact, while the roots of modern AI can be traced to classical philosophers, the term “artificial intelligence” originated following a 1956 conference at Dartmouth College. With ongoing technological advancements, AI continues to significantly impact areas such as production processes in the spirits industry, resource optimization, and consumer analysis and engagement.
AI – Enhanced Spirits Production
The wine industry has adopted artificial intelligence to enhance quality control throughout the production process. Advanced sensors and cameras monitor each stage, identifying and rectifying variations that may elude human detection. Additionally, AI contributes to refining specific factors, such as temperature regulation and the incorporation of flavor-enhancing elements.
In a 2024 interview with JustDrinks, Greg Hughes, former President and CEO of Beam Suntory, stated that their company use AI to “analyse consumer and market data to identify drivers, optimize promotions, predict demand and manage inventory levels”.
For instance, Microsoft Azure's cloud platform leverages AI algorithms to analyze and compare distillers’ recipes, customer preferences, and sales data. This technology was trialed at Sweden’s Mackmyra Distillery, where it helped generate over 70 million unique recipes. It even contributed to creating the first whiskey developed with AI: Mackmyra’s Single Malt Whiskey, Intelligens, which features flavors of white pepper, ginger, and aniseed.
AI-Enabled Resource Optimization
Experts have projected that AI will automate 1.7 million jobs by the end of 2024-2025 and could increase productivity by up to 20%.
Smartbidder, a media-buying platform co‑developed by Diageo, uses AI to pinpoint the most efficient media spend opportunities for reaching target audiences. Brands like Smirnoff Vodka and Don Julio are already leveraging AI to enhance their packaging development.
AI‑driven design is poised to further transform liquor packaging, enabling spirit brands to create premium, luxury packaging more quickly and at lower cost. These same capabilities also strengthen marketing efforts through high‑quality, AI‑generated imagery.
AI-Empowered Consumer Analysis and Influence
As ChatGPT has surged in popularity, a wave of new AI chatbots has emerged to help consumers discover brands based on their taste preferences and even suggest ways to elevate their drinking experience.
Following a similar model—where users can ask unlimited questions—TasteGPT was created to address inquiries about flavor trends, packaging, consumer behavior, and more. Developed by Tastewise, a generative AI–powered platform, TasteGPT continuously refines its database using real consumer search queries.
Diageo’s former Director of Technology, Devin Nagy, explained that his “ultimate vision for AI is the following scenario: A shopper is on social media, perhaps while also planning to host a barbecue. If Pernod Ricard is doing everything right, that shopper gets an advertisement on their phone promoting a brand like Skrewball for a BBQ; then, when they go to their local store, the sales representative uses data to ensure the peanut butter whiskey is stocked at the right price. Consumers, Calloc’h says, must ‘know about the brand. And when they need it, they find it.’”
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Artificial intelligence is revolutionizing the spirits industry by optimizing production, enhancing packaging design, and personalizing consumer engagement through data-driven insights and generative AI tools. Companies like Diageo and platforms such as TasteGPT illustrate how AI is being leveraged to streamline operations, boost productivity, and better connect brands with their audiences.