AI in Manufacturing: A Practical Guide to Getting Started

In This Article

For generations, many manufacturers have stuck to the same way of doing business. They’ve relied on the systems, processes, and standards that have been effective for years, and are traditionally wary of embracing new technologies. Artificial Intelligence (AI) is no exception, and rightly so. The barriers of high costs, compatibility with existing systems, and a lack of clear, quantifiable value for certain investments have been significant. Why introduce risk and complexity into a smoothly running system when it’s not a business imperative?

And yet, the tide is turning. Rapid advancements in generative AI, coupled with the pressing need to address workforce shortages, are pushing manufacturers towards a transformative era of modernization and automation. As we stand on the brink of Industry 4.0, manufacturers that harness the power of will AI unlock significant advantages. 

Benefits of AI for Manufacturing

In today’s shifting environment, AI will become a necessity to keep up with the competition. AI is not merely another rung on the technological ladder; it represents a seismic shift in the very fabric of technology. As a learning tool, AI’s impact is set to grow exponentially and empower manufacturers to operate smarter, faster, and more efficiently.

In addition to empowering manufacturers to do things better, AI will create paths for manufacturers to do things differently. Time-tested systems, processes, and standards may change based on new insights, connections, and capabilities that manufacturers didn’t have before.

Investing in AI will be transformative for your business. Tomorrow’s factory, powered by AI alongside human intelligence, will have lower costs, improved forecasting, automation to fill gaps left by the labor shortage, increased productivity, and more.

As a leader in the manufacturing industry, you know that the world is changing. Industry 4.0, generative AI, and the current and looming workforce shortages are creating new challenges and opportunities for your business. You need to adapt and innovate to stay ahead of the curve and deliver value to your customers, employees, and stakeholders. But how?

How do you transform your business with AI? How do you leverage AI to do things smarter, faster, and more efficiently, and to create new paths forward?

B.E.S.T. Practices for AI Maturity

It all starts with a growth mindset, or the belief that you can develop your abilities and potential through learning, effort, and feedback. A growth mindset is essential for embracing AI and transforming your business. It is the opposite of a fixed mindset, which is the belief that you cannot change your abilities and potential.

But having a growth mindset is not enough. You also need a clear and systematic approach to build AI maturity and achieve your business objectives. That’s why we recommend adopting B.E.S.T. Practices for AI maturity. These include:

Build a comprehensive strategy for business, technology, and AI.

Engage experts for guidance and insights.

Stay focused on your mission.

Transform with AI as you weave it into your culture, processes, and systems.

Build a comprehensive strategy for AI success.

In this era of rapid innovation, creating a comprehensive strategy is key to AI success. You need a clear vision of what you want to achieve with AI, how you will measure success, what data and technology you need to support your AI initiatives, and what AI models and methods you will use to solve your problems.

Business strategy

Before you do anything, you must ensure you clearly understand your business needs, challenges, and goals. Then, and only then, can you begin to identify use cases and value propositions for AI. Each AI project should always begin with a business case. You’ll need to:

• Have clarity on your hypothesis to test. What are the business objectives, measurements of value, and expected outcomes of your AI initiative?
• Know your focus. Where is your low-hanging fruit? Where should you focus? Choose the use cases that have the highest impact, feasibility, and alignment with your strategy.
• Start small. Don’t try to solve everything at once. Instead, start with a minimum viable product (MVP) that can deliver quick wins and learnings, and then iterate and improve based on feedback and data.

Technology strategy

An AI-ready application and data platform architecture should be part of your strategy. Make your data accessible, reliable, and secure, and your applications scalable, integrated, and cloud-based. Build a strong data foundation today that will save you months of cleaning and organizing data from disparate sources tomorrow. Ensure a sound architecture that will support your AI initiatives.

AI strategy

Apply the right model to the right use case. Be systematic and pragmatic in choosing the AI models and methods that best suit your problem and data. AI is not a one-size-fits-all solution; it requires careful evaluation and experimentation.

Stay focused on your mission.

Don’t take on new initiatives or get distracted by shiny tech before completing your initial AI projects. Instead, stay focused on the objectives you set during business strategy planning. Ensure you continuously work towards meeting these objectives and then measure the value at the end of the project. Experiment with your assumptions, learn from your outcomes, and only then expand to new projects.

Transform with AI as you weave it into your culture, processes, and systems.

Over time, you’ll reach a place where AI fits into the everyday fabric of your organization, empowering you to continuously improve and innovate. To transform your organization with AI, not just use it as a tool, you’ll need to:

• Create and foster a culture of learning, experimentation, and innovation. Go beyond traditional ways of doing things and explore new opportunities and capabilities.
• Empower your people with AI. Enable your employees to use AI as a copilot, not a competitor, and provide them with the skills, tools, and support they need to succeed.
• Leverage AI across business units and functions. Don’t limit AI to a single department or project. Use it to enhance and optimize your entire value chain, from production to customer service.
• Use AI to continuously improve and innovate. Don’t settle for the status quo. Instead, use AI to monitor, measure, and optimize your performance, and to discover new opportunities, products, and markets.

For more tips to get started, read 3 Steps to Prepare for Generative AI in Manufacturing.

References:
¹Supply Chain Lessons from Covid-19: Time to Refocus on Resilience | Bain & Company  
²Leveraging Artificial Intelligence and Automation for Return on Investment in Innovation: Design and Manufacturing Sector (autodesk.net)  
³2.1 Million Manufacturing Jobs Could Go Unfilled by 2030 – NAM 
⁴AI in Manufacturing in 2024 – Data, Innovations & Examples (business2community.com)  
⁵AI powered solution – the next best option for demand forecasting (analyticsindiamag.com)