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Artificial Intelligence is transforming Industrial Sectors

Unlocking the actual value of artificial intelligence (AI) in industrial sectors requires strategic initiatives. From establishing AI value realisation offices to developing workforce reskilling plans, industrial leaders can navigate challenges and harness AI's potential for transformative change.

Artificial Intelligence is transforming Industrial Sectors

Artificial intelligence (AI) is poised to revolutionise industrial sectors profoundly. While traditional AI methods like machine learning (ML) have been integrated into operations technology (OT) solutions, the emergence of generative AI (GenAI) underscores AI's transformative potential.

Key Indicators of AI Adoption

Statistics illustrate the swift progress and trajectory of AI integration:

  • Forty-nine per cent of advanced manufacturing and mobility companies have fully integrated AI-driven changes into their capital allocation process, with 41% set to follow suit in the next 12 months.
  • By 2030, 96% of companies will increase their AI manufacturing investments.
  • Looking further ahead, 59% of industrial leaders perceive AI as either significant or game-changing for the future of manufacturing.

Challenges in AI Deployment

Despite the imperative to adopt AI swiftly, industrial leaders encounter various obstacles. Challenges span four key dimensions: supply chain, strategy, workforce, and information technology (IT). For instance, while 29% of advanced manufacturing CEOs prioritise enhancing supply chain resilience, geopolitical uncertainties have led 32% to postpone their supply chain plans.

AI's Positive Impact and Risks

Notwithstanding challenges, around 45% of advanced manufacturing CEOs view AI as a suitable force capable of enhancing business efficiency and innovation. However, the scarcity and cost of tech talent pose significant risks to AI adoption, with 26% of manufacturing companies citing it as their primary growth impediment. Furthermore, data-related issues and digital disruption, including cyber risks, emerge as critical concerns.

Unlocking AI Potential: Five Initiatives

To maximise AI's potential, industrial leaders can undertake five initiatives:

  1. Establish an "AI value realisation office": Initially focusing on streamlined experimentation and resource optimisation, this unit evolves into a "control tower," steering AI strategy across the organisation.
  2. Explore future scenarios: Companies can optimise resource allocation and prioritise projects by aligning AI initiatives with broader strategic goals.
  3. Develop a workforce reskilling plan: Given AI's transformative potential on work dynamics, companies must prioritise employee reskilling to align with evolving job roles.
  4. Create a data architecture assessment and upgrade roadmap: A robust data infrastructure is crucial for effective AI deployment, necessitating comprehensive evaluation and phased upgrades.
  5. Develop AI ecosystem partnerships: Forge partnerships with AI ecosystem players to augment capabilities and drive innovation.

In navigating the complexities of AI deployment, industrial leaders must adopt a two-speed approach, embracing immediate actions while laying the groundwork for future evolution. By embracing AI's transformative potential, companies can unlock new avenues for growth and innovation.

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