Harnessing the Power of AI: A New Frontier for Small Manufacturers
Published on by Jessica Doremus in Manufacturing, Technology
The manufacturing industry is undergoing a technological revolution thanks to the transformative potential of AI, with the potential to have an even greater impact than robotics. And while there are opportunities for manufacturers of all sizes, the greatest opportunities are for smaller companies.
AI is already reshaping every facet of manufacturing operations in leading-edge adopters, from predictive maintenance and quality control to supply chain optimization and autonomous production lines. For small manufacturers looking for a competitive edge, AI holds the key to enhancing efficiency, boosting productivity, improving quality, and driving innovation.
Adoption at the speed of light
The manufacturing industry’s AI adoption is moving at an unprecedented pace and getting faster every day. Technological research and consulting firm Gartner predicts that by 2026, over 80% of enterprises will have deployed AI-enabled applications in production environments – an exponential leap from fewer than 5% today. And according to the 9th Annual State of Smart Manufacturing report released by Rockwell Automation, 85% of manufacturers responding to the survey say they’ve already invested or plan to invest in AI this year.
New opportunity means new challenges
The lack of universal industrial data, perceived complexity of AI systems, and the absence of internal AI expertise are slowing adoption for many. Plus, there’s the challenge of navigating a complex legal landscape, addressing issues such as data privacy, regulatory compliance, and ethical considerations. Robust cybersecurity measures and data governance frameworks are essential to safeguard sensitive information and maintain stakeholder trust.
Breakthroughs best barriers
The rapid rise of Generative Artificial Intelligence (GenAI) is a game-changer for smaller manufacturers. GenAI can model complex datasets, making AI technology accessible to a broader set of users (think plant workers and manufacturing engineers). That’s shifting the focus from highly specialized algorithmic models to building optimal data sets to train an AI system – a more feasible approach for small manufacturers with limited resources.
Increased efficiency, productivity, and quality
One of the biggest impacts that AI can have on a manufacturer is the ability to enhance efficiency and productivity. AI algorithms can anticipate equipment failures, optimizing maintenance schedules, and minimizing downtime. AI-driven automation streamlines production processes, reduces errors, and increases throughput. This increased efficiency gives smaller manufacturers the competitive edge they need to thrive in an increasingly globalized market with an accelerated rate of change and heightened competition.
AI-powered systems are a boon to quality assurance, analyzing vast amounts of data to identify patterns and anomalies. This ability to detect defects with precision ensures that only flawless products reach the market, increasing customer trust, loyalty, and company reputation.
People aren’t going anywhere
Contrary to popular belief, AI’s role in manufacturing isn’t about replacing human workers, but rather augmenting their capabilities. Much as robotics have done for the previous generation, AI-enabled tools empower workers by providing actionable insights and decision support, ultimately enhancing productivity and job satisfaction. The collaboration between human and machine opens the door to new possibilities for using AI to transform manufacturing – and the possibilities are as endless as human creativity.
The new wild west
Integrating AI into manufacturing presents an exciting frontier for smaller manufacturers. By thoroughly exploring and understanding the impact of AI and strategically investing in AI technologies, they can unlock unprecedented opportunities for growth and competitiveness.
The AI integration journey requires a holistic approach, encompassing technological adoption, workforce empowerment, and ethical stewardship. As AI continues to evolve, small manufacturers must remain adaptable and proactive, leveraging AI’s potential to shape the future of manufacturing for generations to come.
Related resources
While GenAI can help make us more productive, finding and retaining talent is still a major issue in manufacturing. Top 10 Takeaways for Recruiting & Retaining Manufacturing Talent is a 7-minute read you won’t regret. You can also boost your competitive advantage with the 2023 Manufacturing Compensation & Benefits Benchmarking study, which includes data from manufacturers of all sizes throughout our region. Watch the reveal on-demand, and download the slides. You can also subscribe for manufacturing updates and event invitations so you’re always ahead of the game.
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