Artificial Intelligence is expected to reshape the way manufacturing companies work.
Artificial Intelligence (AI) will change the face of manufacturing in the coming years as companies from different industries invest more in building smart supply chains. Manufacturing companies have started incorporating more and more AI in their daily activities in search for more efficiency and productivity, says a report by Tractica, a market intelligence firm.
It is expected that spending on software, hardware and services for AI will increase from $2.9 billion in 2018 to $13.2 billion by 2025. “As manufacturing becomes more cost-sensitive and customers demand quality, manufacturers are using AI to enhance the performance of equipment, reduce downtime, and improve the quantity and quality of products,” says principal analyst Keith Kirkpatrick. “The overarching driver of AI technology is the ability to find insights in large data sources that would be too unwieldy for humans to analyse quickly.”
According to a report by Capgemini, looking at how automotive manufacturers are investing in AI, the majority of companies are still reluctant to heavily invest in the technology. For 2018 there was a modest growth in investment by 3%. 25% of US companies invest in AI on a larger scale, followed by the UK (14%) and Germany (12%). China has managed to almost double its annual investments in the area from 5 to 9%.