IGD: automation, AI, robotics not just a luxury but a necessity for under pressure food industry

A new Economic Viewpoint report from IGD, Institute of Grocery Distribution, highlights the need for accelerated AI and robotics adoption to combat labour costs, ensure resilience and meet future food demands.

A perfect storm is brewing in the food system, according to the report. 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.

Despite the challenges, there are opportunities for the entire food industry to adapt. Retailers are increasingly turning to technology to boost productivity, cut costs, and cope with rising labour expenses amidst staffing challenges. In retail these advancements are reshaping efficiency and setting new benchmarks.

Beyond daily tasks, technology is transforming inventory management, reducing theft, and unlocking revenue through data monetisation. In a rapidly evolving market, technology provides retailers with the edge they need to adapt and succeed.

Toby Pickard, Retail Futures Senior Partner, says: “The food industry is at a critical juncture. By leveraging technology and innovative solutions, we can transform the sector, ensuring sustainability and growth. It’s not just about reducing headcount; it’s about creating a resilient and efficient food system that can weather these challenges and emerge stronger.”

Embracing automation, AI and robotics is not just a luxury but a necessity for the future, IGD argues. It notes that this is something acknowledged by government in development of its food strategy which aims to drive investment, productivity and innovation so that our largest manufacturing sector can realise its potential for economic growth.

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Wednesday, 3rd September.

This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

Key 2025 dates

Friday, 18th July: Award entry deadline 

Tuesday, 22nd July: 2025 finalists revealed

Wednesday, 23rd July - Friday, 8th August: Judging days

Wednesday, 3rd September: Winners announced at the 2025 RTIH AI in Retail Awards Ceremony, to be held at The Barbican in Central London.