How Manufacturers Can Thread The Needle With AI

Digital transformation is accelerating—or so it seems on the surface. According to Parsec's 2024 State of Manufacturing survey, 79% of manufacturers report being "somewhat" or "very" prepared to implement AI, and an amazing 99% anticipate widespread adoption within the next four years. However, this optimism is tempered by another key finding: only 56% of survey respondents have a data-driven strategy in place to support such implementation.

The potential for AI to revolutionize manufacturing is undeniable. From predictive maintenance to real-time analytics to process optimization, AI offers manufacturers a way to dramatically enhance operations. Yet as transformative as AI can be, deploying it prematurely—or without a clear strategy—can bring operations to a grinding halt.

Manufacturers need to adopt a "yes, and" mindset, prioritizing AI as a strategic goal while exercising deliberate caution. This balanced approach ensures that the technology serves as a tool for progress rather than a source of disruption.

Risks And Rewards

Manufacturing, like many industries, exists on a spectrum of digital transformation. While some facilities are relatively advanced, having embraced technologies like AI and digitalization, others remain in the early stages—or haven't begun at all.

Facilities that have invested in digitalization are realizing the key benefits:

•AI-enriched predictive maintenance helps maximize uptime and equipment ROI.

•Computer vision improves quality by detecting errors that human eyes might miss.

•Machine learning flags potential malfunctions or inefficiencies in real time, helping reduce costs and enhancing efficiency.

•Emerging AI applications aim to streamline data analysis, troubleshooting and decision-making, offering competitive advantages to those already digitalized.

For manufacturers looking to catch up, it's important to remember that haste can be just as harmful as delay. Manufacturers that rush to implement AI without adequate preparation risk expensive and damaging consequences:

•Operational disruptions from untrained teams or poorly integrated systems.

•Negative impacts on quality, efficiency and delivery timelines, leading to customer dissatisfaction.

•Wasted resources on implementations without clear use cases or objectives.

To avoid these pitfalls, manufacturers must address two key areas:

Team Readiness

Employees need comprehensive training to understand how AI will change their workflows and what it means for their day-to-day responsibilities. Questions will arise, issues will occur and troubleshooting will be necessary. Teams must have the confidence and knowledge to navigate these challenges without causing operational delays.

Clear Use Cases

AI adoption must be tied to specific goals—whether it's improving a KPI, addressing a pain point or streamlining a process. Without clear objectives, even the best technology will fail to deliver meaningful results. It's essential to look closely at your business, identify areas for improvement and determine how AI can help address these shortcomings.

With a well-trained team and clear objectives, manufacturers can adopt AI in a way that mitigates risks and maximizes rewards.

AI is a long-term, continuous investment.

AI's potential goes far beyond immediate applications. From identifying trends and root causes to preventing failures and powering digital twins, AI is a tool that evolves with your business. However, unlocking this potential requires a foundation of thoughtful planning and incremental investment.

Leaders must begin by asking the right questions:

•How could AI address specific challenges or improve existing processes?

•Which KPIs would AI enhance, and how would success be measured?

Equally important is engaging with employees throughout the process:

•Gather feedback to understand their pain points.

•Show them how AI can alleviate these challenges and improve their roles.

•Keep teams involved and informed at every step, from planning to implementation.

This collaborative approach doesn't end with deployment. AI requires ongoing refinement, monitoring and iteration to deliver sustained value. Building trust within the workforce and maintaining a long-term perspective will help ensure AI becomes a source of competitive advantage rather than a temporary experiment.

Thoughtful implementation begets powerful results.

AI represents a transformational opportunity for manufacturers—but only if implemented thoughtfully. The road to success lies in balancing urgency with preparation: moving decisively toward adoption while ensuring facilities, teams and strategies are ready to support it.

By prioritizing clear goals, comprehensive training and continuous collaboration, manufacturers can confidently thread the needle, positioning themselves to thrive in an increasingly competitive and technology-driven world.