Posted by Toronto-New Delhi: Manufacturing sector like the IT industry is not far behind in leveraging artificial intelligence (AI), according to a new study ‘AI in Manufacturing in Asia.’
The Hammerkopf led-study covered the CXO’s perspective on AI in the manufacturing industry in Asia. Manufacturing companies as well as new age startups, as per the study are at various stages of AI deployment, with an intent to increase business efficiencies, identify trends and predict risks.
Interestingly, 40% amongst the 250 enterprises surveyed had an AI policy strategy and action framework formulated, while close to 60% had a mix of pilot AI projects or AI solutions already in place.
While, AI use cases are still experimental in the manufacturing sector as the study indicated but there’s a clear recognition of AI’s disruptive potential, when combined with sensor data emanating from Industrial IoT (IIoT).
When it comes to mastering AI initiatives in manufacturing enterprises, its the CIOs that lead from the front compared to other CXOs. As many as 85% CIOs in these manufacturing units led the AI initiatives followed by CEOs with 15%.
CXO Perspectives on AI
In terms of CXO outlook on AI, respondents were bullish about AI and recognizing that its key for a future defined by Industry 4.0. In addition, there is a clear expectation that AI will contribute to supply chain efficiencies being realized, along with enhanced quality improvements, and reduction in machine downtime.
AI Use Cases
The key use cases that CXOs identify for AI in manufacturing include predictive analytics (55%), supply chain forecasting (50%), and demand forecasting (48%).
AI-related Challenges
For manufacturing companies everywhere, the upmost challenge is to identify the right AI vendor (66%), finding the right skill-sets, and talent (55%), and convincing the top management of RoI on AI related projects (45%).
“In the age of disruption and creative chaos, manufacturers everywhere are under more pressure, than ever before, to out-innovate and out-grow. With the advent and growing maturity curve of Artificial Intelligence applications, enterprises are seeing positive outcomes, whether it be in reducing operational costs, enhancing productivity, or positively transforming customer experiences,” said Namagiri Anand, Managing Partner – Hammerkopf, a bespoke business platform.
“AI has the potential to positively impact the manufacturing industry, enabling key enterprises to operate at unprecedented speed and scale, while overcoming legacy challenges. Going forward, those deploying AI in manufacturing will need to develop and refine their capabilities across the value chain,” added Namagiri.
The ‘AI in Manufacturing study’ from Hammerkopf, covered 250 enterprises from across Asia, operating in the manufacturing industry, and including, among others, automotive OEMs, chemicals, consumer durables, plastics, food and beverages, and steel.