Manufacturing goes AI-first

New research from Avanade reveals how manufacturers are accelerating towards a world where human-centric, real-time AI leads the way.

Real-time AI: a manufacturing imperative

Generative AI opens the door to an era of manufacturing, driven by intelligence, where anyone can effortlessly analyze diverse datasets at scale in seconds.

A massive 91% of survey respondents said their firm plans to be AI-first within just 12 months to take advantage of the many benefits new AI technologies bring. Yet just 7% of manufacturing employees use AI on an hourly basis today to drive better workflows. This is despite the fact that:  

Manufacturers need to be able to produce highly customized products and cope with large fluctuations in customer demand at speed and scale.
Supply chains have grown more complex, spanning global workstreams, languages, time zones, compliance regulations, and Environmental and Social Governance (ESG) standards.

Our research of 300 global manufacturing professionals shows a lack of accessible data to enable AI tools to make informed decisions in this world of continuous change remains a key challenge. 

Overcoming barriers to AI success

Manufacturers lack an open data platform that can seamlessly operationalize value from massive volumes of data in a timely way. Data silos, inaccuracies, and gaps pose major analysis challenges.

Manufacturers rely on data inputs from many different internal departments, supply chain partners, legacy machinery and field engineers who manually record details of equipment faults.

Around 93% of firms are increasing investments in IT to overcome friction in current data architectures while maintaining high levels of data security and privacy to address these challenges. The top three priorities are data and analytics platforms; workforce platforms and tools; and automation platforms.

“

People say the data is the new gold. That's really true. Getting, managing and maintaining clean, proper data is quite a task. Organizations have to understand that without that, they can forget using AI on their internal processes.

Industrial manufacturing executive, Europe

“

AI augments human capabilities. If I can do the job of three humans, you can pay me more. In many industries, it's hard for firms to raise prices. We have some interesting ways to bring AI into the workplace in positive ways to solve this issue.

Automotive executive, USA

“

AI can give people back time for their own lives. It can do lots of positive things for business and society by driving efficiency. That's got to be the narrative. AI is part of a solution, not a scary monster that's going to take your job.

Automotive executive, USA

Top value drivers

Respondents were asked to identify the primary value driver for AI in their business.

92

%

Use AI periodically

AI is used by 92% of manufacturers on a daily or weekly basis today

7

%

Use AI pervasively

AI is currently used on an hourly basis by just 7% of respondents

91

%

Plan to be AI-first

They are driving massive changes within a year or less

93

%

Are boosting AI budgets

The increase in investments in IT ranges from 25% to 50%

Ready or not: generative AI is here

Read the full report now

New global research from Avanade explores the readiness of organizations to introduce, adopt and scale generative AI tools like Microsoft Copilot.

Open the report

Canada - English

Manufacturing goes AI-first

Real-time AI: a manufacturing imperative

Generative AI opens the door to an era of manufacturing, driven by intelligence, where anyone can effortlessly analyze diverse datasets at scale in seconds.

Overcoming barriers to AI success

Manufacturers lack an open data platform that can seamlessly operationalize value from massive volumes of data in a timely way. Data silos, inaccuracies, and gaps pose major analysis challenges.

People say the data is the new gold. That's really true. Getting, managing and maintaining clean, proper data is quite a task. Organizations have to understand that without that, they can forget using AI on their internal processes.

AI augments human capabilities. If I can do the job of three humans, you can pay me more. In many industries, it's hard for firms to raise prices. We have some interesting ways to bring AI into the workplace in positive ways to solve this issue.

AI can give people back time for their own lives. It can do lots of positive things for business and society by driving efficiency. That's got to be the narrative. AI is part of a solution, not a scary monster that's going to take your job.

Top value drivers

92

%

7

%

91

%

93

%

Ready or not: generative AI is here

Read the full report now

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