The rise of AI in the industrial sector
October 9, 2024
With rapid advancements and investments, artificial intelligence is revolutionizing assembly operations. AI is becoming a powerhouse in these operations, and it is vital for companies to embrace it, rather than fear it, to thrive in the competitive industrial landscape.
Artificial Intelligence (AI) is no longer just a buzzword. With advancements in machine learning and deep learning over the past decade, coupled with substantial investments and research from leading companies, AI has firmly established itself as a crucial component of industrial operations, becoming a transformative force in the sector.
Big tech companies are spearheading the AI revolution and sparking an arms race for digital authority; a trend driven by the immense potential the technology holds for enhancing efficiency and innovation. This surge in AI adoption is evident in the substantial capital expenditures of tech giants, who invested nearly $29.1 billion into generative AI deals in 2023.1 For this year, total capital investments from major corporations like Apple, Google, and Amazon are predicted to soar to $200 billion.2
The AI arms race
Overall, the industrial landscape is rapidly embracing AI to stay competitive. Multinational company Atlas Copco is leveraging the technology in its smart factories and warehouses. AI-driven quality control, for instance, is redefining manufacturing standards. Atlas Copco’s Antwerp Product Company employs advanced algorithms and machine learning to perform visual inspections, ensuring each product meets strict assembly standards. This early error detection reduces waste, minimizes rework, and enhances product integrity, leading to higher quality and customer satisfaction.
Stand-alone AI capabilities may leave something to be desired, and its limitations are clear. For example, AI systems are still prone to generating inaccurate or false information. However, when different types of AI technology are coupled together, their success is significantly amplified. As demonstrated in a recent article from the Economist, teaming up different types of AI to work on individual, specialized tasks has more of an impact than relying on one solitary software. Single AI models must work through tasks sequentially, which is limiting; whereas multi-AI systems – much like human teams – can handle distinct roles simultaneously and more efficiently.3
Atlas Copco: leading the charge
These new technologies are just the beginning, paving the way for higher efficiency and quality improvements in the future. With ongoing advancements, AI will further enhance productivity, quality, and precision across all aspects of their operations.
In warehousing, Atlas Copco’s AI-driven management systems further streamline inventory control, significantly reducing risks of overstocking or stockouts, which has decreased overall inventory. Moreover, smart energy management systems underscore Atlas Copco’s commitment to sustainability by optimizing energy consumption and reducing environmental impact.
Creativity in the Age of AI
It may seem paradoxical, but the rise of AI is generating an even greater demand for creativity and human-centric skills. While AI introduces more automation, it simultaneously increases the need for people skills. In a recent article, Forbes highlights the necessity for creativity in the age of AI, suggesting that while AI handles repetitive tasks, human ingenuity remains crucial for problem-solving and innovation.4 The message is clear: AI is not a threat but a powerful tool that, when combined with human creativity, can drive unprecedented advancements.
Industry experts agree that a new type of management is needed, one that can foster the innovation machines can't generate. Generative AI, in particular, is automating mundane tasks, which will require workers to become more creative to stand out and make an impact. And despite concerns about job losses, AI is in fact creating new opportunities. Businesses should therefore invest in enhancing their employees' skills with AI tools, as this will reduce job threats and help them stay relevant in an evolving job market. Professionals and managers should view AI as an opportunity rather than a threat.
By embracing AI and its myriad possibilities, businesses can enhance their manufacturing and warehousing processes while setting a benchmark for innovation in the industrial sector. As AI continues to evolve, those who recognize its capacity to drive innovation and creativity will remain competitive and meet future challenges head-on.
