How AI can level the playing field for small manufacturers
While AI may power the future, it’s still human ingenuity and creativity that will drive it forward.
AI used to feel like something only the biggest manufacturers could afford or understand, but things have changed. Today, small and mid-sized companies are realizing they can tap into AI to enhance their operations, innovate faster and remain competitive in a rapidly evolving industry. What was once a distant dream is now closer to reality.
Eddy Azad, founder of Parsec, has been at the forefront of this change. “AI isn’t just for industry giants anymore. It’s something I think every smaller manufacturer should be exploring,” Azad explains.
However, for most companies, the biggest challenge isn’t deciding to use AI—it’s figuring out how to get started, especially when they’re working with limited resources.
Data Is the Engine of AI
Without good data, AI can’t do much. But collecting, organizing and managing data can feel like an overwhelming task, especially for smaller manufacturers who don’t have the sophisticated systems larger companies use.
“Many small manufacturers are closer to being AI-ready than they think,” says Azad. “A lot of their machines already gather data, it’s just a matter of knowing where to start collecting it.” He suggests using what’s available first, and building on that gradually.
Often, the best starting point is implementing the industrial internet of things (IIoT) — smart devices that can track essential variables like temperature, pressure, and production flow, giving manufacturers more visibility into their processes without a major overhaul. These IIoT devices were only combined with AI systems on a large scale as of 2019, and Azad is quick to dispel the myth that such technology needs to be an all-encompassing system from day one. “It’s okay to take baby steps,” he says. “Start small, figure out where devices can give you the quickest wins and best data insights, and go from there.”
In fact, platforms like Parsec’s TrakSYS make it possible for companies to take advantage of existing data streams, improving efficiency and reducing downtime without massive upfront investments. “Think of AI as a tool to build up to gradually, not a silver bullet that will solve all your problems in one go,” Azad advises.
AI Helps Humans Solve Problems Hidden in Data
One of the most exciting parts of AI isn’t just its ability to crunch numbers—it’s how it frees up human decision-making. For Azad, AI isn’t about replacing people. “AI enhances what we do best as humans,” he says. “It processes huge amounts of data, finds patterns we’d miss, and gives us the time and space to focus on problem-solving and decision-making.”
Small manufacturers can really benefit from this partnership between AI and human insight. Rather than spending time reacting to problems or guessing where inefficiencies are, teams can use AI to predict issues before they happen and make proactive decisions. AI acts like an assistant that points out the problems, but it’s still up to the human team to find the best solution.
The Ripple Effect of AI Integration
Here’s the thing: even if a company isn’t fully using AI, they’re probably feeling its influence already. “AI is becoming part of the entire supply chain,” Azad points out. “Even if you’re not using it yet, your partners, suppliers, or competitors probably are, and that’s going to affect the way you operate.”
Beyond that, AI isn’t just about high-level efficiency. It also helps democratize knowledge across a business. These systems can break down complex insights into language that everyone on the team can understand, regardless of their technical expertise. This kind of accessibility opens up new possibilities for collaboration and innovation.
What’s more, Azad explains that the ripple effect of AI extends to the workers themselves. “The tools are becoming easier to use, making manufacturing processes more accessible for everyone involved,” he says.
Whether it’s reducing errors, speeding up production, or helping teams adapt to new workflows, AI is giving employees at every level new ways to improve their work.
The Future for Smaller Manufacturers Looks Bright
Small manufacturers have always had the edge when it comes to being agile and resourceful. These traits are perfectly suited to the world of AI, where the ability to experiment, pivot, and evolve is crucial.
“Small manufacturers have been the backbone of the economy for a long time,” Azad says. “They’re flexible, innovative, and open to change. With AI, they have the chance to be even stronger.”
Azad believes that what’s most exciting about AI is that it’s no longer just for the big players. “You don’t have to invent the technology to benefit from it,” he adds. “You just need to embrace it and use it smartly.”
By taking small, strategic steps, and focusing on areas where AI can make the biggest impact, small manufacturers are in the perfect position to thrive in this new era of democratized technology. While AI may power the future, it’s still human ingenuity and creativity that will drive it forward.
