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Manufacturers Latching on to Artificial Intelligence

It has taken a while, but the manufacturing industry is catching up with the rest of the business world when it comes to leveraging the invaluable benefits of artificial intelligence.  

According to a recent study by Google: 

  • About two-thirds of manufacturers surveyed (64 percent) rely on artificial intelligence in day-to-day operations, with a quarter allocating at least 50 percent of their overall IT budget toward AI.  
  • Among manufacturers who use AI in day-to-day operations, the top three reasons are to assist with business continuity (38 percent), help employees increase efficiency (38 percent) and help employees overall (34 percent). 
  • The top five areas where AI is currently used in day-to-day operations include quality inspection (39 percent), supply chain management (36 percent), risk management (36 percent), product and/or production line quality checks (35 percent) and inventory management (34 percent). 
  • Two-thirds of manufacturers (66 percent) who already use AI in day-to-day operations said their reliance on AI is increasing. 
  • Among manufacturers who currently don’t use AI in day-to-day operations, about a third believe it would make employees more efficient (37 percent) and would be helpful for employees overall (31 percent).  
  • Cloud adoption – essential for the use of artificial intelligence – is high among manufacturers. Most (83 percent) already have a cloud strategy.  

Another interesting takeaway from Google’s survey are the subsectors using AI the most. The metals subsector leads the way with 75 percent, followed by industrial and assembly (72 percent) and heavy machinery (69 percent). 

There are still manufacturers dealing with barriers to entry regarding the use of AI in their operations. They cite not having the talent to properly leverage artificial intelligence (25 percent), not having the IT infrastructure to implement AI (23 percent), the high cost associated with artificial intelligence implementation (21 percent), AI as an unproven technology (19 percent) and not having stakeholder buy-in (16 percent) as barriers to use AI in their core business.  

That’s where 2W Tech can help. To help guide your organization through your AI journey, partner with us. 2W Tech is an IT consultant with vast experience guiding companies through their digital transformation. Contact us today to begin your journey to Industry 4.0. 

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