Digital transformation goals continue to influence large enterprise IT spending. Generative Artificial Intelligence (GenAI) has now emerged as a transformative technology. Its ability to create entirely new business models or designs holds immense promise across industries.
Still, a recent market study by ABI Research, presented at the 'Hannover Messe 2024' event, paints a somewhat cautious picture of GenAI adoption in the global manufacturing sector.
ABI Research highlighted a strong presence of GenAI at the event, with industrial software vendors showcasing its application in the form of AI assistants and co-pilots. They forecast revenue from GenAI use cases in manufacturing will reach $10.5 billion by 2034.
Manufacturing GenAI Market Development
"The dominant use cases leverage core strengths of Large Language Models (LLMs) for Programmable Logic Controller (PLC) programming, code generation, step-by-step work instructions, and data enrichment and consolidation," said James Iversen, industry analyst at ABI Research.
These solutions streamline operations and expedite workflows, focusing on functionalities that offer immediate time-saving benefits. This trend underscores a pragmatic approach by manufacturers, prioritizing near-term value creation over long-term applications.
According to the ABI assessment, many companies lack an innovative approach. The overall sentiment is a slow and steady deployment strategy, emphasizing use cases with quick time-to-value ROI.
This cautious approach to GenAI adoption is reflected in the data -- the market has yet to transition beyond near-term applications focused on immediate productivity gains.
This measured approach is understandable. New technologies often face initial skepticism, particularly in an industry where established legacy processes deliver proven results.
However, the potential benefits of GenAI are undeniable. AI-powered systems can optimize production lines in real-time, generate innovative product designs based on market trends, or predict equipment failures.
The upside lies in its ability to move beyond efficiency gains and usher in a new era of creativity and innovation in manufacturing. Here's what a best-case scenario might look like:
- Collaborative Design: Imagine AI co-designing products alongside human engineers. GenAI could take human concepts and generate many variations, accelerating the design process and fostering out-of-the-box solutions.
- Personalized Production: GenAI could personalize production lines based on real-time customer data, allowing for mass customization and on-demand manufacturing.
- Predictive Maintenance: By analyzing sensor data and historical trends, GenAI could predict failures before they occur, minimizing downtime and optimizing maintenance.
- Supply Chain Optimization: GenAI could analyze vast datasets across the entire supply chain, optimizing logistics, identifying potential disruptions, and ensuring material flow.
Outlook for GenAI Apps Growth in Manufacturing
ABI Research offers a more progressive approach to GenAI adoption in manufacturing. While focusing on near-term efficiency gains is understandable, the industry must embrace an ambitious goal.
Manufacturers, technology providers, and research institutions should collaborate to develop and deploy more value-creation GenAI applications. By fostering a culture of innovation and risk-taking, the manufacturing sector can unlock the full potential of GenAI use cases.
That said, I believe GenAI apps hold the key to a future of efficiency, creativity, and sustainable competitive advantage. The time for slow and steady moves is over. Savvy leaders will apply the power of GenAI to achieve their desired business outcomes.