From Farm to Fork : The Role of AI in Advancing Sustainable Business Practices

Abstract

This study examines how artificial intelligence (AI) supports environmental and social sustainability in the Icelandic food industry across the full value chain—from production to retail. Using a qualitative design, five semi-structured interviews were conducted with senior executives from food production, processing, and distribution firms. Thematic analysis revealed that AI is primarily applied for automation, quality control, energy efficiency, and workplace safety. Although not initially adopted for sustainability purposes, AI delivers indirect benefits such as reduced material use, lower energy and water consumption, and minimized food waste. For instance, AI-based quality control improved efficiency in meat and fish processing, while predictive tools enhanced inventory accuracy in retail. Importantly, no evidence was found of rebound effects or increased resource use. Instead, AI contributes to sustainability mainly through operational improvements. Its adoption is largely driven by external factors such as labor shortages, regulatory pressures, and consumer expectations. Despite its promise, challenges remain, particularly in data-sharing, implementation costs, and public trust. The study highlights the importance of embedding AI in broader ethical and sustainability frameworks to ensure its long-term contribution to responsible food system transformation.