The surprising pros and cons of AI integration in packaging

Are we ready for it; more importantly, is it ready for us?

As companies look to enhance efficiency, sustainability, and customer satisfaction, AI provides innovative solutions that streamline processes and create smarter packaging designs. However, this technological advancement also raises important concerns. Understanding both the advantages and disadvantages of AI in packaging is essential for businesses aiming to take full advantage of its benefits.

AI technology has experienced tremendous growth across multiple sectors, and packaging is no exception. It is what we are all being told is exactly but we need to incorporate in all sorts of areas of our lives and work. From design and production to logistics, AI is bringing about a new era of efficiency. Companies are using AI, which promises to analyse data, improve workflows, and create tailored packaging solutions that resonate with consumer needs.

One of the key benefits of AI in packaging is its ability to enhance efficiency. Automated systems powered by AI can handle numerous tasks at once, significantly reducing the time and labour involved in packaging processes. You could see a productivity increase of up to 40%.

Moreover, AI reduces the need for repetitive manual labour, minimising human error and ensuring a consistent look across products.

But, this is nothing new. MIS systems have long allowed production processes to be more efficient, data management software has allowed analysis of what, where and how packaging is interacted with, used and disposed of, and automated systems have become the norm, already minimising errors and saving time and cost, as well as taking steps out of production processes. This all happens today, so why the fuss about AI?

Sustainability is also a growing concern in today's manufacturing landscape. AI is intended to promote eco friendly packaging solutions by analysing materials used and suggesting alternatives that create less waste. But, again, you don't really need AI for this – there are plenty of tools and options available already.

AI also aids in evaluating supply chain logistics. By identifying optimal shipping routes, it can help reduce carbon emissions and bolster the overall sustainability of packaging operations. But then, so can a good logistics software program.

However, the AI defenders will say that it simply does all these things better, quicker and more effectively. Predictive analytics driven by AI for instance, enables businesses to foresee market trends and consumer behaviour in much more detail. This insight is vital for optimising inventory and minimising overproduction, which in turn reduces waste. Companies can make informed, data driven decisions about their packaging strategies to align with changing consumer demands.

Despite what no doubt will be long term benefits as AI develops further, the upfront costs of implementing it can be significant. Businesses must invest in essential technology, training, and infrastructure to integrate AI systems successfully. For smaller firms, this financial burden may exceed potential gains, creating a barrier to entry. And, this will be especially crucial if businesses cannot see a real reason for implementation. If they can already do the things that AI promises through other means, then why bother with the cost and disruption?

Research indicates that while larger corporations can allocate substantial amounts for AI investments, but up to 60% of small businesses hesitate to transition to AI due to financial concerns.

As AI systems become more efficient at performing tasks that humans traditionally handled, worries about job displacement rise. Many roles in packaging that involve manual labour may become redundant as companies turn to automation. According to a World Economic Forum report, around 85 million jobs could be displaced by 2025. This transition could foster anxiety among employees, leading them to resist AI adoption. To ensure a smooth transition, businesses must communicate effectively and provide re-skilling opportunities for their workforce – but will that happen in reality? Will companies bear the cost of keeping staff on if AI is doing the job? Not all may be able to be re-skilled or moved to other roles.

Integrating AI into packaging requires extensive data collection and analysis, which can raise privacy concerns as well. Companies must handle consumer data responsibly and securely to maintain trust. Any data breaches can lead to severe legal repercussions and financial losses, which can deter businesses from fully embracing AI.

We have recently seen massive problems with technology causing outages at big name brands and retailers. Whilst this is not AI driven, it is a stark reminder of our general reliance on all things automated, which when it works is wonderful, but when things do go wrong, they go wrong in a big way, and there is no failsafe.

While AI excels at analysing patterns and trends, it may also struggle with true creativity in design – and AI brain just doesn't think like a human brain. It is reliant on input and what it does with that, rather than true creative thinking –  so great maybe for brainstorming, but for true creative design?

Packaging aesthetics often require the human touch that AI cannot replicate effectively. Human insight, experience, instinct, emotion and understanding is crucial for grasping cultural nuances and innovative design concepts that distinguish a brand. As companies aim for innovative packaging solutions, relying solely on AI – which, yes, can tick the boxes in terms of general requirements but may just. be box ticking rather than creative – could though lead to uninspired designs that fail to attract consumers.

The adoption of artificial intelligence in the packaging sector presents an intriguing mix of opportunities and challenges. By boosting efficiency, enhancing sustainability, and enabling customisation, AI has the potential to transform the industry. However, it is essential to also recognise the challenges and limitations in creativity. Certainly for now.

AI has to offer something more fundamental, and yet it also has to offer something more inspirational. Something more than data analysis, which we already do. Something above saving time through automation, which we already do. Something convincingly better than what we already have.

Its ability to problem solve could prove a real asset in packaging and this is a real area where it could excel, especially with many producers looking to answer the challenges of today's markets and materials and the demands of today's brands.

Balancing technological advancements with human creativity and ethical considerations will determine how successfully companies can navigate the future of packaging.

What do you think?