How AI and Robotics Change Manufacturing

AI & Robotics cover a range of emerging technology currently used in driving operational and cost efficiencies. AI allows machines to gather and extract data, acknowledge patterns, learn and adapt to unsupervised, unexpected situations. According to PwC analysis, global GDP will increase 14% in 2030—this percentage is equivalent to an additional USD 15.7 trillion—due to the accelerating development and take-up of AI.

Accordion to the International Robotics Federation (IRF), the operational stock of industrial robots has tripled over the past decade, with more than three million robots in use across various industries by the end of 2020. Asia leads the way in the shift to automated processes, with China installing industrial robots at breakneck speed. In addition, in 2020, China employed 168,400 industrial robots, amounting to 44% of global installations. This is the highest value ever recorded for a single country. Companies are making investments to set up or expand factories in markets that generate revenues to get the most out of these factories.

According to PwC’s recent survey, global manufacturing companies intend to allocate 77% of their assets to set up digital factories in Germany and western Europe over the next five years. Other regions are much less focused on setting up expanding digital factories as the global manufacturing companies only plan to allocate 7% of their investments to Asia and 5% to Eastern Europe.

Moreover, the rapid change will also likely alter the nature of jobs in manufacturing, creating new roles and transforming others. Focusing overtly on digital skills, though, is not going to solve the broader workforce gaps in the manufacturing industry nor the industry’s ability to respond to disruption. On the other hand, innate human capabilities, such as conceptual thinking, decision-making, social flexibility, and drive, will determine whether tomorrow’s manufacturing workforce can engage with a digital environment and drive outcomes.

Perhaps, a practical approach for manufacturing companies to weather this storm is to reskill and upskill their workforce. Before a company can reskill and upskill its workforce, the company, however, has to know what skills are in-house, what skills are needed for new jobs, and what skills are mandatory to transform into the future. In this regard, an end-to-end talent lifecycle management strategy will significantly justify the outcomes.

Moreover, reskilling and upskilling internal talent offer numerous organizational advantages. They are shorter ramp-up times, better employee engagement, higher business performance, and cost savings. According to LinkedIn’s latest Global Talent Trends, 81% of respondents said internal recruiting improves retention, and 69% said it accelerates new hire productivity. You have now known these facts, so you might proceed in no time.

Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor and MEGA Tech