The Manufacturing Evolution
How AI Will Transform Manufacturing & the Workforce of the Future
How AI Will Transform Manufacturing & the Workforce of the Future
For manufacturing enterprises, the advent of artificial intelligence (AI) will reshape the source of value creation, the formation of new business models, and the delivery of value-added services such as mass customization, predictive maintenance, and “product servitization” (i.e., the process of building revenue streams for manufacturers from services related to your products). As AI becomes more prevalent in various aspects of business management and operations, investing in people will become even more important. AI and automation will not displace people but rather combine their capabilities in new ways to create new forms of value and new opportunities. The manufacturers that identify how to empower their workforces through AI applications will create the greatest value going forward.
For manufacturers who fear they are behind the curve in preparing for this AI revolution, you are not alone: Just 5% of Manufacturers Alliance member companies have mapped where AI opportunities exist and developed a clear strategy for sourcing the data that AI requires. And 56% of companies currently have no plans to do so. The picture improves over the next five years, as 14% of respondents expect to have completed such mapping by then, while 63% expect to be in the process of doing so. This summary outlines the key findings and recommendations to guide manufacturers in the next leg of the transformative journey with artificial intelligence and their workforce.
At the same time, reflecting how early the application of AI is for many manufacturers, almost half are not yet supporting AI skills development for their workers.
A sustainable AI and workforce transformation will require a deliberate and comprehensive change management strategy. We have six recommendations for business leaders:
1. Create teams to drive digital transformation in the enterprise.
2. Define an “AI governing coalition” for AI transformation.
3. Evaluate AI and workforce transformation readiness.
4. Set measurable objectives for digital and AI transformation.
5. Redefine digital and physical product innovation processes.
6. Overinvest in communication for change management.
This study was done in conjunction with The Information Technology and Innovation Foundation (ITIF). ITIF is a 501(c)(3) nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized as the world’s leading science and technology think tank, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress. For more information, please visit itif.org.
Information Technology and Innovation Foundation
Information Technology and Innovation Foundation