The world, over recent years, has witnessed an enormous paradigm shift, where discovery and integration serve as the basic pillars of technological advancement in the digital age. AI has found enormous scope in various fields of human life, and its application ranges across various spheres of life, from finance to healthcare, from cyber security to the online metaverse. Embracing AI has revolutionized the market, and continues to find its use further down the road—one such field where the implementation of AI has recently emerged as a trend is the food industry. Extensive research is being carried out to understand food properties, production, sustainability and nutrition. Advanced technological tools and software play an instrumental role in food manufacturing and safety. Surprisingly AI has revolutionized the food industry by providing sustainable solutions to ever changing consumer demand, food quality and safety standards. The food retail sector faces multiple challenges with respect to manufacturing, distribution process and storage of food in addition to cost management. The paper critically analyses various technological applications employed in the food industry and attempts to discuss the different challenges encountered in this field.