AI adoption boosts efficiency and flexibility in manufacturing industry

AI adoption

The number of companies adopting artificial intelligence (AI) is growing rapidly. Not only are 45% already using AI, but seven out of ten companies plan to expand its deployment in the coming year. Drivers for this are increasing efficiency (42%) and achieving cost savings (38%). This is according to new research by Amazon Web Services (AWS) among 1,000 Dutch companies.

Of the three sectors surveyed by public relations firm Strand Partners – healthcare, manufacturing and retail – the manufacturing industry leads the way in AI adoption. Companies mainly deploy the technology for product personalisation and supply chain optimisation. According to AWS, a provider of cost-effective, scalable cloud computing solutions, the study shows that industrial companies that invest in AI are better able to respond quickly to new developments.

Over a quarter of companies in the manufacturing sector apply AI mainly to optimise processes such as inventory management and quality control. Thus, the technology reduces manual work in supply chains and enables companies to respond faster to customer demands and new market developments. AI not only helps the manufacturing sector save costs, but also strengthens its competitive position by enabling customised production.

Manufacturing industry leads the way in AI adoption

Although companies in the manufacturing sector score slightly below the national average when it comes to artificial intelligence knowledge, the sector does lead the way in AI adoption. 44% are already deploying AI; in retail and healthcare, the figures are 43% and 36% respectively. This high adoption rate opens the door to applications in several areas, such as personalisation (30%) and supply chain optimisation (26%). Such applications reduce costs and improve efficiency.

The main drivers for implementing AI are therefore increased efficiency (33%) and cost savings (30%), the survey shows. Incidentally, companies do say they need more clarity on AI regulations. At the same time, this is also the biggest obstacle to further AI adoption in the sector.

Using AI to optimise the supply chain

‘Artificial intelligence enables the manufacturing sector to produce in an efficient and personalised way, allowing companies to respond flexibly to market demand,’ said Danielle Gorlick, Managing Director of AWS Benelux. ‘By deploying AI, they can optimise their supply chain and reduce costs, helping them stay competitive in a rapidly changing market.’