The cannabis industry is more than growing, manufacturing, transporting, and selling product to the end consumer, it is infused every step of the way with technology. QR codes, online ordering and delivery, and seed-to-sale tracking are three prominent examples. Some of the biggest companies in the space are ancillary technology companies focusing on SAAS and other software solutions for specific needs up and down the cannabis supply chain. In an industry that is labor intensive with high fixed costs and taxes, it’s not farfetched to say the legal cannabis industry wouldn’t exist without a big assist from the tech sector.
We’ve already seen more cutting-edge technology make major inroads in day-to-day operations, the biggest examples being machine learning (ML) and the use of algorithms in the business-facing side of the industry such as CRMs, consumer data analytics applied to menus, product creation, and marketing and cultivation systems.
More exotic technologies like NFTs and blockchain technology generally have had a lot of hype and interest but so far found very limited use cases around marketing, non-cash payments, and genetics. While these technologies hold a lot of promise, widespread adoption within the cannabis industry remains far off.
The last quarter of 2022 saw the next wave of promise and hype in technology come in the form of artificial intelligence (AI) with all eyes and keyboards focused on natural language processors that employ massive sets of data to mimic general AI responses to questions, sometimes uncannily so and text to images platforms like DALL-E where you type what you want to see and often receive a psychedelic image generated in response.
The cannabis industry is likely to use artificial intelligence (AI) in a number of ways in the future. Here are a few examples of how AI might be used in the cannabis industry:
- Quality control: AI-powered sensors and cameras could be used to monitor the growth and cultivation of cannabis plants, ensuring that they are grown in optimal conditions and are of high quality. HVAC and IPM come to mind.
- Predictive analytics: AI algorithms can be used to analyze data on consumer preferences and buying habits to predict future trends and demand for different strains and products in lieu of or supporting traditional consumer surveys.
- Supply chain management: AI will be used to optimize the logistics of transport and distribution of cannabis products, helping to ensure that they reach customers efficiently and in a timely manner. Last-mile delivery services could be improved considerably.
- Personalization: AI-powered chatbots or virtual assistants could be used to provide personalized recommendations to customers based on their individual preferences and needs. Current ratings and reviews systems leave a lot to be desired and cross-referencing human input with large sets of purchasing data could make product selection and brand loyalty easier for customers
The KPIs to pay attention to as AI-powered systems come into cannabis will be enabling true data-driven decisions and performance improvement processes and lowered labor costs.
Overall, AI has the potential to greatly enhance the efficiency and effectiveness of the cannabis industry, and it is likely that it will play an increasingly important role in the industry in the coming years.
DeepAI’s version of a cannabis leaf
I asked OpenAI’s popular natural language processing tool ChatGPT when to expect cannabis legalization in the United States. Would it have a surprise in store for cannabis industry veterans who have been?
“It is difficult to predict when federal legalization of cannabis will occur in the United States. There has been growing support for legalization at the federal level, with a number of bills being introduced in Congress to remove cannabis from the list of controlled substances and legalize it at the national level. However, these efforts have not yet been successful, and it is uncertain when or if they will be.”
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