Getting the Most Value from AI Investments
To capitalize on AI, manufacturers must learn how to prepare and analyze their data.
TAKEAWAYS:
● Manufacturers need to develop a thorough understanding of their data and the proper protocols for using that data.
● Manufacturers can use advanced technologies like AI to become more nimble, deliver better operational insights, and gain a more nuanced understanding of customer needs and relationships.
● To take full advantage of their data, manufacturers need to focus on data and system architecture, data governance, and data analytics.
The manufacturing sector historically has been a slow adopter when it comes to investments in artificial intelligence (AI) and other transformative technologies that require a solid foundation of data and clear practices around data use. It’s common for organizations to have vast amounts of data but lack insight from that data for several reasons, including the persistence of manual data collection, information existing in silos, and failure to segment customers in meaningful ways.
There has been significant hype around generative AI in 2023, but feeding the appropriate data into such AI tools is critical if companies want to benefit from the technology. Manufacturers looking to exploit advanced technologies to their fullest extent need to develop a thorough understanding of what data they have and proper protocols for using that data. Companies must capture, curate, and cleanse the data they have before they can determine how best to monetize them.
By first preparing the data properly, teams will then be able to use data not just for day-to-day operational tasks or metrics—such as how much product shipped on a given day or how inventory levels have changed in recent months—but to think more creatively about what else they can learn from data sets.
Manufacturers that foster curiosity among their leadership and employees will better position themselves to create a factory of the future. Being a leader in AI will be necessary to remain competitive. According to a June 2023 Manufacturing Leadership Council survey about AI in 2030, “while many manufacturers may only just be starting to leverage the possibilities of AI, they also have clear plans to accelerate that adoption significantly in the years ahead, with AI investment levels expected to rise in a substantial 96% of all the companies responding to the survey.”
Matt Dollard is a principal and an industrials senior analyst at RSM US LLP.
[1] The content in this paragraph was originally published in an RSM article titled “The potential for artificial intelligence to transform manufacturing.”
[2] The content in this paragraph was originally published in an RSM article titled “The potential for artificial intelligence to transform manufacturing.”
