South Korea’s confectionery giant Lotte Confectionery Co. will actively use artificial intelligence (AI) in developing the next hit snack, a move that is expected to bring about big changes in the confectionery industry, according to the company.
The company said on Wednesday that it has developed Lotte Confectionery Intelligence Advisor (LCIA) that can predict future food trends by comprehensively analyzing diverse internal and external data such as sales data, weather condition, consumer age group, and regional spending pattern, as well as studying tens of millions of social data based on AI technology.
The company said it has spent two years to develop its own AI system, which will also recommend a new product category, estimate new item demand, and analyze sophisticated social data. The system also will provide real-time analysis of consumer response to new product items, allowing the company to set up accurate marketing strategies.
LCIA is based on an algorithm that studies previous popular items by seven or eight different categories such as taste, material, texture, shape, size, and packaging, as well as hundreds of subcategories to suggest the success genes for a new product. Because the smart system is also supported by deep learning technology, its prediction would become more accurate as time goes by, the company explained.
Lotte Confectionery expected that the LCIA system should allow it to have more in-depth, prompt analysis of market trends and would help to revolutionize the way of doing business in the food industry.
An unnamed official from Lotte Confectionery said that it is considering applying the system to other food affiliates and utilizing it to not only develop new products but also other areas involving production and operations.
By Lee Duk-joo and Lee Eun-joo
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