We’re exploring how manufacturing technologies, cultures, and markets are evolving (fast) in this ongoing series about the future of the industry. Check out our first entry on Industry 5.0, and come back often as we continue to scout ahead.
AI – The Next Chapter in Manufacturing
The last era in manufacturing was all about digitization, integration, and automation. So it makes logical sense that the next era in manufacturing, which is ramping up now and commonly called Industry 5.0, will rely heavily on artificial intelligence. AI builds on all the progress made in the past while bringing transformative capabilities to the table that manufacturers have long wanted and needed.
It’s no surprise that manufacturers are enthusiastic about AI—95% of those surveyed are actively investing in the technology. However, the future of AI in manufacturing may look different than many may expect.
The Current State of AI in Manufacturing
Manufacturers are finding applications for AI across all departments. The most common use case thus far is relying on AI to predict and prevent quality issues at speed and scale. Inventory teams are using it to optimize what they order and when; maintenance teams can now predict breakdowns with AI and fix the issues preemptively; production teams can tweak plans and schedules in response to dynamic market forces; finance teams are closing the books faster with more insight.
This list is far from complete and growing everyday. AI has already found a place throughout the factory floor because it supplies what so many manufacturers need: a way to understand, organize, and optimize complex systems in simple ways.
The Future of AI in Manufacturing
By far the biggest misconception about AI in manufacturing is that it will replace humans entirely and fill factories with robots. Recent experience has shown that AI delivers the biggest impact when deployed as a supplement or support layer to humans. Alternatively, AI running independently, especially at scale, creates countless technical, logistical, and security challenges.
All manufacturers want to boost efficiency, profitability, and resilience, and it increasingly looks like AI will deliver that not by making humans irrelevant but rather by making each person more productive than ever. Examples include:
- Information Retrieval: Synthesizing huge amounts of material—equipment manuals, training docs, specs sheets—that people can easily access in the field.
- Decision-Making Support: Relying on pattern recognition, trend analysis, data forecasting, and other predictive capabilities to inform decisions made by humans with real experience and company/industry expertise.
- Adaptive Systems: Implementing systems that learn and adapt over time keeps them improving continuously without needing people to make endless tweaks.
- Real-Time Responsiveness: Seeing issues and opportunities as they emerge with the constant awareness of AI so that people can capitalize instead of catch up.
Important Considerations for Manufacturers Using AI
The ROI of AI in manufacturing will only climb steeply in the years ahead, which makes it all the more important to understand the risks.
AI can fail on a technical level if it’s not planned, implemented, and maintained correctly. It can also be a security liability that results in exposed data, machine downtime, and lost market share. AI requires infrastructure and, in many cases, expertise that are hot commodities right now. It can also create compliance concerns, especially in highly regulated verticals like aerospace and defense and medical device manufacturing.
To minimize these risks, always start small with a test that’s both high value and high feasibility. Build the data strategy, architecture, and integration. Then consider how to apply governance, maintain ethics, and monitor performance long-term.
More than just another new technology, AI will soon be central to much of what manufacturers do and drive their competitive advantage. That’s why it’s important to plan thoroughly around the risks, rewards, and realities.
Your Guide Through the AI Era
Guide Technologies has spent years helping manufacturers adapt to the tech landscape and prepare for the future in advance. We’re now helping many companies move confidently into the AI era by adopting Infor Cloudsuite Industrial, a manufacturing-specific ERP loaded with AI-driven features to improve every department, workflow, and strategic goal.
Contact us to learn more about Infor or to discuss making your AI ambitions a reality.
