AI as an Ultimate Game-Changer for Business
• AI is on the rise as a key technology that the manufacturing industry relies on to help its survival and increase the chances of long-term success.
• Intelligent AI analysis leads to accurate predictions and increases competitive opportunities for manufacturers because it can accommodate the needs of customers directly.
• Smooth, continuous production process, and reduced waste overall can create advantages for producers.
The impact of AI on the manufacturing industry is completely changing the business game. Today, many visionary companies are using AI in their manufacturing processes to increase their efficiency, productivity, and accuracy as well as reduce unnecessary losses.
The adoption of artificial intelligence in the manufacturing sector is growing. This is due to the increasing use of automation in the manufacturing industry and the growing demand for big data integration. In addition, manufacturing artificial intelligence is also being driven by the increasing use of vision systems in manufacturing to inspect machines, monitor material movement, and control the quality and accuracy, etc.
The trend of AI adoption in manufacturing processes is emerging in a wide range of industries, including automotive, food and beverage, pharmaceutical, metallurgy and machinery manufacturing, semiconductors and electronics, for example, to help manufacturers reduce their production costs, adopt new technologies and assemble components.
An interesting case study is the French food manufacturer Danone Group which uses machine learning to improve the accuracy of demand forecasting. This results in a 20% reduction in false forecasts, a 30% reduction in lost sales, and a 50% reduction in the workload of customer demand planners.
Another example is the Japanese automation company Fanuc which operates robots 24 hours a day. Their robots can produce the necessary components for CNC (automated machining centers) and motors to run the entire manufacturing process nonstop and facilitates the continuous monitoring of all operations.
Yet another example, Porsche, uses an automated guided vehicle (AGV) to automate key steps of the automotive manufacturing process by transporting vehicle components from one processing station to another. This helps eliminate the need for human intervention and enables more streamlined processes from start to finish without external interruption such as the COVID-19 pandemic or other unforeseeable hindrances.
Nowadays, AI can process and interpret huge amounts of data from the production area to identify patterns, analyze and forecast consumer behavior, and detects anomalies in the production process in real-time among other abilities. This provides manufacturers with a clear insight into their operations across all of their facilities regardless of the locations through machine learning algorithms. Moreover, this AI-powered system also has the ability to continuously learn, adapt and improve.
After the disruption from the COVID-19 pandemic, many operators have sped up their digital transformation, thereby highlighting the importance and critical role that AI plays for manufacturers who are determined to be resilient and forge their growth ahead.
According to McKinsey, companies that use AI have reported more cost savings and revenue generation, with 16% seeing a 10-19% cost reduction, while 18% seeing a 6-10% increase in overall revenue. Meanwhile, a report from Research and Markets indicates that Asia has had the largest share of this market last year. It is estimated and in 2022, the global AI manufacturing market will be worth $18.12 billion, and continue to grow to be worth $21.3 billion by the year 2028.