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Technology is being used across industries to lead to better experiences for companies and customers. The manufacturing industry is no exception, also taking advantage of rapidly developing technology to improve operations and enhance products. The implementation of this technology also provides an opportunity for manufacturers to learn more about their processes and gain valuable insights.
In today’s business world, data has become extremely important in the quest to stand out among competitors, quickly improve products and efficiency, and forge deeper connections with customers. Data tells us how fast a product can be made or how often a customer reorders a product.
Every industry creates data, but the winner by far is manufacturing. According to Deloitte research, manufacturing generates approximately 1800 petabytes (1 million times larger than a gigabyte) annually – more than the government, retail, media or health care create annually.
Manufacturers are beginning to recognize the benefit of tapping into this vast amount of data, much of it previously under-recorded and underutilized. By using artificial intelligence (AI), machine learning and other technology tools to collect the data and assist in the manufacturing process, manufacturers can realize greater efficiencies, address labor concerns, predict maintenance, improve safety and more.
In its survey on AI adoption in manufacturing, Deloitte found that 93% of companies believe AI will be a “pivotal technology” to drive growth and innovation in the industry.
The newness and complexity of AI, Internet of Things (IoT), machine learning and similar technology has led some companies to stay on the sidelines of adoption – for now. But the opportunity that is AI provides significant upsides. Here are some ways AI and other technology can help manufacturers.
Increased safety
The safety of employees is paramount in the manufacturing process. Protocols, processes and safeguards are in place to protect workers from injury or worse. AI can help manufacturers improve safety in facilities through the use of AI-powered cameras and sensors, for example.
These tools scan the production floor, recognize any potential safety concerns and alert the correct parties of the hazard so that prompt action can be taken to avoid an accident. Arguably the most effective use of AI tools is to analyze large sets of data to identify patterns and predict potential hazards.
Improved workforce
When AI enters the conversation related to labor, there are concerns that it will create enough synergy to eliminate current positions held by humans. However, humans are needed to bring all the capabilities of AI to life.
AI can benefit both the company and its employees. In addition to improving safety, AI can relieve workers of repetitive, monotonous tasks, allowing them to focus on high-value tasks.
The increased adoption of AI will lead to the need for more skilled workers who can oversee the implementation of AI and connect the dots of the data collected. Improved workplace safety and employee satisfaction with their roles can boost talent attraction and retention, which is even more important in tight labor markets.
Focus on innovation
Manufacturing has a long history of innovation in every aspect of the industry. With access to more information through larger data collection and smart technology, manufacturers can identify any gaps, quickly analyze data and focus on providing new solutions. Innovations can go to market more quickly thanks to the improved use of technology to create efficiencies and apply design changes.
Increased efficiencies
AI can create operational efficiencies in many areas, including reducing waste, increasing production capacity and improving customer relationships. For example, robots are often used in the manufacturing process, but with AI, the robots can go beyond what they are programmed to do and instead adapt to a changing environment and make decisions based on what they have learned.
AI-powered computer vision tools can analyze data or images to detect defects in products, quickly alerting workers or managers to any issues. The speed of detection decreases the amount of wasted product and improves quality control. AI-powered tools can learn from data to predict when equipment may fail as well as when it will need to be serviced, leading to scheduling optimum maintenance periods to minimize downtime.
Protecting data
A growing area requiring additional legal concern is data privacy. As more manufacturers rely on technology, especially technology that is connected to the internet, data collection, individual privacy concerns, and often differing state laws must be considered. Manufacturers need to ensure that any data collected via AI or other technology, including customer data or intellectual property, is stored and shared pursuant to not only internal policies but also local data privacy laws and regulations.
Conclusion
AI and other technology have the ability to transform the manufacturing process by improving safety, innovation and efficiencies. When implementing AI in the manufacturing process, it is important that company leaders bring together stakeholders to discuss goals, develop new procedures and processes, and identify the talent who will bring this new technology to life in the manufacturing process.
Legal analysis of possible pitfalls or other liabilities has also become a necessary component to this process. Doing so will help manufacturers maximize the benefits when adopting and integrating this technology into the manufacturing process.•
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Partner Bill Kaiser is co-chair of Dentons’ national corporate practice and managing partner of the firm’s Jasper office. Andrew Klump is a senior managing associate in the corporate practice. The opinions expressed are those of the authors.
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