First prediction : 50% of manufacturing companies will use AI in some form by the end of 2021
You'll see, the implementation of AI solutions will change everything. Every industry, business, process, and company. But let's not forget: for many companies, AI solutions are already here, offering an unprecedented competitive advantage.
One thing that confuses manufacturers is the term “AI.” In reality, AI is a collection of specific technologies, from natural language processing to visual identification, chatbots, analytics, and automation, each with its own strengths and applications. What they all share is the intelligence factor: a high degree of accuracy and an incredibly fast ability to learn from their mistakes. In the case of one of IFS's clients in Northern Europe, the accuracy of the forecast before and after implementing an AI solution was eye-opening. The AI solution's forecast was much closer to the actual market results. For this business, a specific and achievable goal has translated into concrete and measurable results.
When thinking about AI, we must remember that it can't be implemented, just like the internet can't be implemented. Before starting any project, we must figure out its "why." What business objective do you want to achieve? What exactly do you want to improve and optimize? Because the more specific your objectives, the more competitive and transformative your results will be.
Second prediction : 25% of manufacturers will communicate with their systems by voice in 2010
AI solutions are smarter and more eloquent than most of us realize. A year ago, an AI customer survey found that two-thirds of people who said they had never used AI had actually done so through chatbots. The quality was so high that the chatbots were indistinguishable from human speech. The same survey found that 84% of respondents were comfortable using voice-activated AI at home, in the form of Alexa, Siri, or Home. And if simplicity, speed, and accuracy are crucial benefits for the consumer, imagine what they could do on a manufacturing line.
The intelligent integration of Alexa in BMW was widely applauded. And rightly so. The integrated voice activation went far beyond that, adding layers of service and performance capability to the entire driving experience. What is less well known is that voice-activated solutions are also being used on the production side of the automotive industry. In Japan, for example, another IFS customer, NEC, is already using voice-activated solutions in its order picking process, where staff simply give spoken instructions and their order is created instantly. Which brings us to the next prediction.
Third prediction: "pick & place" robots will handle 25% of products manufactured in 2020
Robots on the production line have been essential for decades. But what kind of savings and competitive advantage will AI-enabled robots offer in the warehouse? When Amazon made headlines with its smart warehouses staffed by fast, tireless robots, the enormous performance and savings became clear. Robots don't need lighting or heating, so energy costs plummet. There are no time or weight limits on breaks, shifts, or loads. And the flexibility, fluidity, reach, and economy of picking and putting translates into better space utilization without wasted time or effort.
At IFS we are already seeing that the most innovative companies are starting to work with smart warehouses: the heaviest parts, which once required a team of workers, can now be transported from the platform by a robot, effortlessly, without wasted time, or additional costs.
In 2019, we'll see technologies gain ground in the business world. They will become more specific and project-oriented. The goal will be to achieve small, concrete results and improvements that will lead to big changes. For many companies, 2019 will be the year they realize they don't actually need to "climb a mountain of AI." They just need to keep taking the right steps, however small, to reach the top.
Author: Antony Bourne, IFS Global Industry Director for Manufacturing
