The rise of artificial intelligence (AI) and machine learning (ML) in recent years has transformed industries across the world – including manufacturing. From predictive maintenance and supply chain optimization to demand forecasting, more manufacturers today are relying on or exploring AI, and generative AI (Gen AI) in particular, to support their day-to-day operations in a smarter, safer, and more cost-efficient way.
According to the latest edition of our State of Smart Manufacturing (SOSM) report, which surveyed more than 1,500 manufacturers globally across 17 of the leading manufacturing countries including Asia Pacific (APAC) nations Australia, China, India, Japan, South Korea, and New Zealand, 83% of manufacturers globally expect to use Gen AI in their operations in 2024. Meanwhile, 95% are already using or evaluating the use of smart manufacturing technologies, an increase from 84% in 2023.
This rising trend of AI in manufacturing is clear in APAC. 44% of organizations are already introducing AI or ML technologies in their workplace, and by 2027, it is estimated that AI will play a role primarily in impacting quality control, followed by robotics, and process optimization. In this article, I’d like to share some key insights based on data extracted from the SOSM report.
Addressing challenges in APAC with AI
In APAC, inflation has been a primary obstacle for manufacturers. Combined with the rising energy prices that have decreased profit margins, a skills shortage in the industry is pushing more organizations to turn to technology and AI to solve their business challenges.
Today, Gen AI is driving one of the highest return-on-investments (ROIs) for manufacturers, alongside cloud and Software-as-a-Service platforms. This success has boosted the confidence of leaders within the industry to introduce AI and ML as solutions to workforce shortages and to bridge skill gaps in the near future.
In many ways, APAC is taking the lead in reframing the human-technology partnership, where technology is seen as an enabler, not a replacement, for more productive and sustainable business outcomes. As organizations use Gen AI technologies to amplify their workforce, they will in turn allow for new roles to be created. In the long run, this will create a robust and agile working environment that produces quality output.
In addition, GenAI’s ability to do demand forecasting by analyzing historical sales data and market trends will help manufacturers curb the impact of inflation by consistently optimizing their pricing strategies over time.
Maintaining a high level of quality control with AI and ML
In manufacturing, quality is of paramount importance for safety reasons and in ensuring long-term business growth and resilience. The report showed that in 2024, controlling and improving quality was ranked one of the highest use cases for AI and ML. This shouldn’t come as a surprise, since AI enables more efficient, accurate, and proactive approaches to detecting defects and ensuring product quality.
For example, identifying flaws on products across the supply chain used to be done by humans, inspecting one product at a time. Today, ML models can be trained to analyze visual data to identify any anomalies, and over time, can identify defects that may not be picked up by the human eye. This will improve compliance and service-level agreements (SLA).
Leveraging data to mitigate risks
The benefits of technology and data in manufacturing have been tremendous, but according to the SOSM report, one of the most important areas where data has been able to support is in the area of risk management, specifically in the area of cybersecurity. From financial, operational, to external data sources, having access to data and being able to make sense of them logically helps businesses assess potential risks across different areas.
ML algorithms can also detect patterns of emerging risks like supply chain disruptions, market fluctuations, even cybersecurity threats, so that manufacturers can take proactive measures before it’s too late.
In fact, 35% of companies in APAC cite cybersecurity as an obstacle. Cybersecurity has been listed as one of the top five external risks for manufacturers in 2024 globally. This is why at Rockwell Automation, we partner with leading cybersecurity experts to ensure that our customers’ networks remain secure.
Delivering on ESG for a greener future
The SOSM report states that energy management is the most critical component in manufacturing. It directly impacts business cost, but more importantly, efficient energy management enables resource conservation. With a large part of the manufacturing industry operating with non-renewable resources, being able to conserve resources is crucial for a sustainable future.
Currently, 91% of manufacturing companies in APAC adopt environmental, social, and governance (ESG) policies, with energy management being a priority. Meanwhile, 36% of manufacturers in the region are already looking to adopt technology for tracking and quantifying sustainable practices.
Supply chain resilience used to be the key concern among manufacturing companies, but with the rising energy costs, prices, and labor costs, companies need to pay more attention to manufacturing automation and production optimization. At Rockwell Automation, we are helping manufacturers build sustainable production systems by realizing digital transformation.
Through smart manufacturing, organizations can proactively invest in more energy-efficient technologies so they can successfully meet their ESG goals and ensure operational resilience.
To learn more download the State of Smart Manufacturing Report.
Originally published in Industrial Automation Asia
Published August 8, 2024
