AI transforming manufacturing, boosting productivity by 188%

TeamViewer has released The AI Opportunity in Manufacturing Report, outlining the substantial impact that artificial intelligence (AI) is expected to have on the manufacturing industry.

The report indicates that 71% of manufacturing decision-makers believe AI will catalyse the most significant productivity surge in the past century. The technology is already delivering tangible benefits by automating routine operations, thereby saving employees an average of 10 hours monthly, which allows them to focus on more complex tasks.

AI utilisation in manufacturing has increased considerably, particularly in response to global issues such as labour shortages and supply chain difficulties. Currently, 78% of manufacturing leaders implement AI in their operations weekly, a notable rise from 46% the previous year. Despite this widespread adoption, only 28% of manufacturing leaders consider themselves AI experts, indicating a need for further skills development.

Manufacturers primarily deploy AI for tasks such as customer support automation (28%), data analysis (23%), and supply chain optimisation (19%). More advanced AI applications, including forecasting and decision-making, are gradually gaining momentum. "Young workers, with their digital-native mindset, are leading AI adoption and helping to integrate the technology into manufacturing's legacy systems," stated Mei Dent, Chief Product and Technology Officer at TeamViewer.

The report highlights the performance enhancements AI brings to businesses and their employees within the manufacturing sector. 77% of decision-makers view AI as essential for improving efficiency by automating routine tasks, reducing downtime, and allowing employees to engage in more strategic roles. AI is also seen as crucial in enhancing product quality and reducing defect rates, with improvements noted by 33% of respondents compared to an industry average of 20%.

AI's introduction also benefits workers directly, with 74% of employees recognising that AI enhances their capability to analyse data and make informed decisions. Furthermore, 72% credit AI with assisting in skill acquisition, and 71% view it as vital for career progression. Financial optimism is prevalent, with 71% anticipating AI will increase revenue by the next year, projecting a growth rate of 188%.

Notwithstanding these advantages, several barriers impede the broader adoption of AI within manufacturing. Chief among these are security issues, with 76% of respondents concerned about AI-related data risks, a figure exceeding the average across all industries. Other notable challenges include insufficient educational initiatives (42%), substantial implementation costs (30%), and limited financial support for expanding AI efforts. Despite these obstacles, there is widespread optimism, with 81% expecting increased investment in AI within the next year.

For the manufacturing sector to fully harness AI's potential, investment in education is critical. An overwhelming majority of 96% of professionals believe additional training is necessary to alleviate associated risks, with 74% intending to establish new educational programmes. Leadership support is also critical, as 68% endorse appointing a Chief AI Officer to manage AI strategies and ensure their responsible adoption.

"AI has already proven its ability to transform businesses, but we've only scratched the surface of its potential," added Mei Dent. "By focusing on collaboration, education, and responsible adoption, manufacturers can harness AI to achieve remarkable results while fostering innovation."