It’s 2022, and OpenAI was just released. As a manufacturer, you’re not shy of technology and digitalization, but you’re not sure how to take advantage of the tool. Then, 2023 arrives with generative AI tools, and at least 57% of companies start to implement AI into their operations, according to the results of our member pulse on AI usage. AI use is growing across an organization, although at different stages of readiness and adoption.
AI for All Departments
Where does this bring us in 2024? In the operations side of the business, 55% of manufacturers are driving AI initiatives towards strategic business gains, and another 24% are focused on cost reductions or efficiencies. Recent research from Manufacturers Alliance highlights seven key areas within the manufacturing value stream where companies have already integrated AI and showcases 75+ use cases that are already under implementation as a Proof of Value.
For departments outside of production, we checked back in with our members in the first half of 2024 to compare implementation progress from late 2023 to see industry progression in about a six-month timeframe. While 37% of respondents remain unconcerned about their department's readiness, 63% express a degree of worry about preparedness. From 2023 to 2024, there has been a notable shift: from a mere 3% with extensive AI initiatives in 2023 to 24% now fully implemented, and another 21% actively working on ongoing projects.
Overall, how concerned are you about the readiness of AI implementation?
Source: Manufacturers Alliance member survey, 2024.
Even with the onslaught of attention, about a third of respondents in non-operations manufacturing departments have no immediate plans to integrate any AI-driven initiatives – starkly different from operations, where 99% of survey respondents have already added new AI initiatives or are planning to launch such applications soon.
Has your company implemented any AI-driven initiatives in the past year?
Source: Manufacturers Alliance member survey, 2023 and 2024.
Getting Less Funding than Ops
Where are non-operations departments turning for resources? Of the respondents, 37% are partnering with companies that specialize in AI solutions. But plenty (16%) are not partnering nor planning to partner with anyone to move forward with AI implementation; operations departments have 4x more plans to partner with external providers (76%). With expectations for the global manufacturing AI market to reach $20 billion in 2028, continuing to gauge the market and benchmarking progress is on the minds of many.
If your company is partnering with or looking to partner with an outside consultant or vendor for its AI implementation, who is it considering?
Source: Manufacturers Alliance member survey, 2024.
Where is the Investment Heading?
For those non-operations-based departments, 16% of respondents have implemented and expanded upon utilizing AI into their marketing campaigns, the highest-ranked use case. Shortly following include intellectual property protection and workforce planning and optimization at 13% each.
On the opposite end, 42% do not plan to use or implement AI-driven recruitment, 39% are not turning towards financial forecasting, and another 39% are not working on AI use cases in risk management and compliance assessments.
What is the status of implementation of the following non-operations use cases in your organization?
Source: Manufacturers Alliance member survey, 2024.
Within the last six months, there have been significant changes to the progress and status of AI implementation in manufacturing. For more on the latest information, explore AI in Manufacturing, a collection of resources for manufacturers looking to further develop knowledge and gain an industry pulse of how AI is changing manufacturing.
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