How manufacturing succeeds with GenAI

I recently participated in a Master Class with the Manufacturing Leadership Council. We discussed the ways generative AI (GenAI) is shaking things up in the manufacturing world. It's about more than simply making things faster or cheaper. It's about completely transforming the way manufacturers get things done. From managing the supply chain to empowering the workforce, GenAI is behind some massive changes. In fact, we’re already helping our clients make some of those changes.

Here are a few of the things we talked about:

Operational efficiency with GenAI

Manufacturers’ first thought about AI is often how it can make operations more efficient. And yes, that's an area with huge opportunities. But the challenge when you start to think about generative AI is GenAI itself. By that I mean it can be expensive — to not only implement and build but also run. So, sometimes operational efficiency use cases won't deliver a great enough return on your investment (ROI). You need to measure what it will save as well as what it will cost.

It’s when you start moving up that value curve that things start to change. For example, when you're creating net new revenue opportunities or increasing customer engagement. But the pièce de résistance is the ability to drive competitive advantage with generative AI. That's when true ROI begins.

Collaborating with AI

Many people have voiced concerns about AI taking over jobs, but that’s not the whole story. The real magic happens when humans and AI work together, enhancing our capabilities without replacing us. (This is a key aspect of what we call digital dexterity.) Partnering with AI can free up humans to tackle more complex, creative tasks while AI handles the data-heavy lifting. The result? A more innovative, agile manufacturing process.

That benefit won't appear spontaneously, of course. You need to train and prepare your workforce to collaborate with AI. In fact, one of the things we're seeing is that as younger generations come on board in any company, they expect access to new and next-gen tools — including generative AI. It’s becoming an expectation. And if you aren’t enabling your workforce with AI tools, that could limit your ability to recruit the best talent.

Finding the right way to enable your workforce with AI will boost your employees’ job satisfaction and help them be more productive.

A framework for ethical AI use and governance

Using AI raises important questions about ethics and data governance, as it should. We need to think about data privacy, security and the biases that might sneak into AI algorithms. And that’s not limited to generative AI; it’s true for all artificial intelligence.

To tackle these challenges, manufacturers need thoughtful governance frameworks. We think about AI governance in four key pillars:

1. People. You need people to set AI governance policies, procedures and acceptable uses. Form a cross-functional steering committee that governs the overall process and a working group that manages the process.
2. Processes. You need to assess potential risks and determine if the benefits outweigh those risks. Each process must be clear.
3. Policies. You need an acceptable use policy, for example, so you don't compromise proprietary information. And you need to establish how you’re going to implement and enforce these policies.
4. Data. Data is an asset, and you need strong data governance practices to get the most from that asset. In fact, data governance is as crucial as AI governance. Make sure the data used in your AI solutions is collected, stored and used responsibly, ethically and in compliance with regulations.

The role leadership plays in AI

In the world of artificial intelligence, even executive leadership is changing. Leaders now need the skills to make decisions differently. We're seeing a lot of enterprises shift toward executive leaders who have a stronger background in data literacy and technology literacy. We're also seeing people and companies start to rethink how they develop future leaders.

This change isn't entirely due to GenAI. And it's not about simply understanding the business and industry in which you work. Leaders need the digital dexterity to understand how technology, data, AI and all kinds of advanced tooling can help supercharge the manufacturing industry and their enterprise.

Generative AI offers an abundance of opportunities for manufacturers. These range from increasing efficiency to developing innovative products and business models. But to truly reap these benefits, we need careful planning, informed and ethical foresight, and strategic implementation.

Are you interested in diving deeper into what GenAI can do for your business? Or maybe you need some help fine-tuning your current AI strategies? Don’t hesitate to connect; we're here to help.