GenAI emerges top tech investment capability by manufacturers for improved business outcomes: report

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Azunta Gaviola

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1 year ago

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Singapore – Artificial intelligence is considered the top capability by manufacturers for driving significant business outcomes, according to a recent report by Rockwell Automation, an industrial automation and digital transformation firm. 

In this report, around 83% of the 1,500 manufacturers surveyed expect to integrate generative AI into their operations in 2024. This implies generative AI as the top tech investment for manufacturers in the current year.

A significant 95%, on the other hand, are also currently using or evaluating smart manufacturing technology, a notable increase from 84% in 2023.

Findings of the study further revealed that 94% of manufacturers plan to maintain or grow their workforce as a result of adopting smart manufacturing technology, emphasising the reassignment of existing workers to new or different roles and/or hiring more workers.

Manufacturers cited “improved quality” as the leading positive outcome from existing smart manufacturing technology for a second consecutive year, with “quality control” ranking as the top AI/machine learning use case in 2024.

Meanwhile, cybersecurity has entered the list of the top five external risks for manufacturers in 2024, ranking third overall for the first time. Energy management also remains crucial to manufacturers’ sustainability and ESG programmes.

Additionally, the report highlighted that approximately one-third of manufacturing leaders see “matching technology and talent to business needs” and “effectively managing people and resources” as their organisations’ most significant challenges in the coming year.

Cyril Perducat, senior vice president and chief technology officer at Rockwell Automation, commented, “A skilled workforce is the cornerstone of any successful manufacturing operation, but attracting, managing, and retaining workers is proving to be an ongoing challenge. The survey found that technology alone is not the answer.”

“To remain competitive, manufacturers need to focus their staff on embracing new technology as a core part of their evolving organisational culture, creating a technology/worker partnership that drives their business forward,” added Cyril.

“At Rockwell, the combination of our deep industry expertise with our exceptional PartnerNetwork™ puts us in the best position to advise and guide leading global manufacturers. Being the largest company dedicated solely to industrial automation and digital transformation, we strive to help companies realise the promise and value of their digital transformation, no matter where they are in their journey,” he said.

Allison Kuhn, principal analyst at LNS Research, also shared, “The workforce of 2019 is not coming back. Developing a sustainable workforce strategy is critical to successfully navigate daunting manufacturing challenges. Leaders are winning the war for talent by embracing this new reality and with a laser focus on three imperatives: 1) Total Employee Experience, 2) Servant Leadership, and 3) Connected Frontline Workforce (CFW) Applications.”

This year’s study reveals a focus on harnessing new and emerging technologies at the core of building resiliency, improving quality, maximising workforce potential, and driving sustainable growth.

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