Artificial intelligence is changing the work of New Zealand's largest businesses.

Fonterra, the largest cooperative in New Zealand, is implementing AI technology to improve production and management processes, which enhances quality and efficiency.

Fonterra, the largest business in New Zealand serving customers in over 100 countries and processing about 22 billion liters of milk each season, actively uses artificial intelligence to optimize internal processes. After collaborating with Microsoft six years ago and transitioning to Azure cloud technologies, the cooperative began integrating AI into strategic operations to increase efficiency.

One notable example of AI usage is the automated monitoring of butter packaging at the manufacturing site in Clandeboye. This system not only improves product quality but also reduces downtime. Teams have started using AI for automatic production scheduling, analyzing data from over 100 factories in real-time.

Against the backdrop of increasing competition, the effective application of AI is becoming a crucial factor for businesses aiming to cut costs and improve service quality. By adopting new technologies early on, Fonterra gains a significant advantage over competitors who have not yet integrated AI into their strategies. Utilizing Microsoft 365 Copilot, the cooperative has identified hundreds of opportunities for applying artificial intelligence.

The long-term implications of AI implementation for Fonterra could significantly alter not only internal processes but also the strategic directions of the company. As part of a joint program with Microsoft to accelerate AI adoption, the cooperative plans to integrate new technologies in the areas of finance and corporate governance, which will contribute to sustainable growth and alignment with the organization's environmental ambitions.