How The Cannabis Industry Can Leverage Big Data And AI

Big data and AI have been the talk of this decade. With a far-reaching impact on nearly every industry in the world, it is not surprising that new markets are turning to reap the benefits of big data integration.

From improving the utilization of resources to reducing operational costs, many businesses have benefited from Big data and AI integration. Can it work for the Marijuana industry too? Let’s find out.

What does it mean for Cannabis Regulation?

The cannabis industry faces one of the most stringent regulations. With such rules, the sheer amount of paperwork can take a lot of manpower, be it in maintaining compliance, insurance, or keeping a track of logistics. These issues can easily divert the management’s focus away from sales or marketing.

Using software like FlowHub or MJ Freeway can help in seed-to-sale operations, including ensuring regulatory compliance, leaving you free to work up the branding and marketing sides of the business.

Can Big Data and AI Revolutionalize Cannabis Production?

With data collection and sharing, it will be possible for growers to choose and cultivate the product they want to produce. Products with variable CBD levels can be developed and even the strain of the plant can be changed with the help of this data. If the demand for products like CBD oil increases, the results can be easily replicated since the record of all variables would be readily available.

AI, on the other hand, can suggest tips and changes based on the data and provide assistance to growers throughout the process. With the help of suitable algorithms, AI can be taught to identify the requirement of plants and automatically modify their environment, including changing and maintaining optimum temperature, light, and water.

This will reduce the need for day-round labor and constant supervision. With the assistance of AI and data-driven system, the production cost, wastage, and energy cost can be reduced while increasing the ROI.

AI in Product Delivery and Logistics

Apart from affecting cannabis production and streamlining business operations, AI can have a great impact on product delivery as well. Since the delivery of cannabis products is as important as growing the plants, it is important to have a seamless tracking and delivery system. It not only increases efficiency but also affects customer satisfaction, as they are kept in the loop throughout the shipment process.

To attract the smartphone-savvy population, companies can also develop apps and provide users with an alternate, on-the-go option of ordering their favorite products.

Competition Analysis

Right now, the cannabis industry is still at a nascent stage. It will take countrywide legalization and an increase in demand before the businesses can scale and provide services at a bigger level. While the products may be a little expensive right now, a rise in the competition will bring the retail prices down in the future.

This is where big data step in. It can help identify the target markets and predict market demand. With increased statistics at their disposal, the companies will be able to analyze the competition and use the insights gained in their marketing and branding tactics. It will also be easier to track trends and make informed decisions.

There already are companies that can analyze and inform growers about such trends and changes, including real-time market insights, volume, and price fluctuations.

Conclusion!

Big data and AI are going nowhere in the upcoming years. However, businesses that fail to use these tools to their advantage might meet a tragic end. The legalized cannabis market is not far behind either. Estimated to worth around a whopping US $66 billion in 5 years, the cannabis industry will flourish with the help of these modern tools.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.