The next big thing

You don’t need to be a devotee of the technology press to know that artificial intelligence has passed from the fevered dreams of sci-fi writers into the mainstream. Systems are already in service that monitor, assess, advise and predict. And they are fulfilling the promises of digital transformation – to engage customers, empower employees, optimise operations and recast business models.

In December, the UAE became the world’s first country to appoint a minister of state – His Excellency Omar bin Sultan Al Olama – for AI. And, as part of Dubai Plan 2021, the emirate’s government has initiated Industrial Strategy 2030, which intends to make Dubai “an international hub for knowledge-based innovation and sustainable industrial activities”. This is chiefly because the industrial sector is now Dubai’s third largest, and the government expects around $190 million to be spent on R&D by manufacturing companies as the sector expands to a value of nearly $16 billion by 2030, creating more than 27,000 specialised jobs.

Time to get smart

So, the pressure is now on for the region’s manufacturing firms to perform at peak efficiency. AI can provide those businesses with access to powerful insights and enable smart-decision making through use of cognitive interfaces, advanced analytics and machine-learning technology.

In a Microsoft survey of 1,000 GCC organisations, of which manufacturers were a significant part, 29% said they planned to adopt some form of artificial intelligence in 2018. Some 41% expressed interest in the separate but related category of business intelligence, while other targets included the Internet of Things (37%), automated workflow (25%) and predictive analytics (21%). In addition, almost one in seven (14%) organisations regarded robotics and machine automation as priorities.

These companies will most likely be winners in a race that is already being run. That race is the Fourth Industrial Revolution – the implacable merger between the physical and digital worlds. The hesitation of others may come from a natural fear of automation that is not altogether unfounded, but which is nonetheless likely to be overblown. It is true that researchers estimate between 4% and 9% of job losses due to automation. But Tata Consultancy Services’ Digital Enterprise Group surveyed manufacturing and services companies around the world and concluded that machine-to-machine (M2M) transactions were the real “low-hanging fruit of AI” rather than labour displacement.

Empowering employees, engaging customers

There is so much that AI can add to a manufacturing business to support the existing workforce. We are already seeing applications in construction and additive manufacturing, such as industrial robotics. Broader applications include the analysis of large datasets. In fact, even machine learning algorithms, applications, and platforms are helping manufacturers find new business models, fine-tune product quality, and optimize manufacturing operations to the shop floor level.

A recent report from McKinsey states that AI-enhanced predictive maintenance of industrial equipment will generate a 10% reduction in annual maintenance costs, up to a 20% downtime reduction and 25% reduction in inspection costs.  Hence, itallows sensor-driven alerts that will ensure products receive timely care and attention to almost never failing at a customer’s site.

The combination of AI functions with ERP and CRM platforms, blended with the Internet of Things, allows solutions that monitor the production process from beginning to end. Those systems can consult cloud-based predictive analytics modules, to consolidate and streamline processes, and keep costs under control.

Companies can connect factories and deliver predictive analytics and logistics capabilities to partners and employees; eliminate weakness from the supply chain; respond automatically to field conditions; reveal more efficient sourcing for parts; or eliminate costly, unnecessary sub-processes. And construction sites, plants and warehouses can use AI software to turn ordinary digital cameras into intelligent monitors of health, safety and security.

The future in figures

Forbes predicted that 2018 could see an improvement in manufacturing yields of up to 30% in the semiconductor segment, thanks to machine learning. Additionally, in its April 2017 report “Smartening up with AI”, McKinsey predicted AI-enhanced supply-chain management could deliver reductions in forecasting errors of 20% to 50%, while missed sales opportunities due to depleted stocks could be reduced by as much as 65%.

Word of these existing and potential benefits is getting around. The Manufacturer’s Annual Manufacturing Report 2018 revealed that 92% of senior manufacturing executives believe technologies such as AI can increase productivity levels and empower staff to work smarter

However, it is important to note that while AI has the potential to make workers feel safer and more productive, it still cannot replace the people. People are essential. They are the ones who manage all other highly skilled tasks. They drive innovation and ingenuity. Moreover, People solve challenges and they are still the most important front “customer service” line.