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1 topic, 2 key figures, 3 startups to draw inspiration from

AI is no longer just found in research centers or tech start-ups. Indeed, AI has turned out to be a change force driving transformations in each and every field, changing how businesses create products, balance operations, relate to consumers, and project market trends..

1. AI in manufacturing: Smart factories and predictive maintenance

One of the first sectors to embrace AI is the manufacturing industry, particularly with the fourth industrial revolution. We are seeing artificial intelligence systems revolutionize the way production lines are run with predicted maintenance, quality control, and even robot automation.

Possibly, the most impactful use of AI technology is in predictive maintenance, which is relevant to the manufacturing industry. Generally, current schedules used for the maintenance of equipment are based primarily on time intervals or equipment failure. On the other hand, the utilization of machine learning technology allows for the implementation of data gathered from sensors installed in equipment, which enables predictive failure of the equipment. For instance, in Germany, a milk processing plant utilizes a Siemens application of artificial intelligence to enable continuous operation all year round.

Quality control has equally been affected by the introduction of computer vision and the emergence of a machine learning concept. For instance, the AI machines have the capacity to identify faulty products precisely and in a much shorter period compared to other machines. For example, BMW is using image recognition AI to detect faulty stages in the assembly of cars.

2. Supply chain optimization: From forecasting to logistics

Supply chains are complex systems that involve many stakeholders, large volumes of data, and an unmanageable number of variables. AI is proving indispensable in streamlining all aspects of the process.

AI-enabled demand forecasting allows companies to predict customer demand like never before. IKEA, has implemented a tool known as Demand Sensing, which uses AI to analyze up to 200 sources of data per product, such as shopping patterns during festivals, seasonal change, weather forecasts, salary payment schedules, among other things, to predict demand.

Another important area is the field of route optimization, in which AI is adding immense value. For instance, the American courier package delivery company UPS has managed to save millions of gallons of fuel due to their AI system named ORION (On-Road Integrated Optimization & Navigation), which optimizes the routes of over 66,000 vehicles daily.

Similarly, supply chain risk management has become much more efficient with the help of AI. The current COVID-19 health issues have shown the risks of changes in the supply chains of most organizations globally, and companies are using AI to keep track of changes in geopolitics, climate, and the health of their companies. Maersk is a container shipping company using AI to forecast risks in supply chains to run operations even in the worst possible scenarios.

3. Customer experience: Personalization at scale

Artificial Intelligence is already transforming the way in which businesses interact with their customers to promote hyper-personalization services to improve their levels of satisfaction.

In fact, AI-based recommender systems have nowadays become critical technology in the retail industry. For example, both Netflix and Spotify apply AI to study the viewer and listener patterns of their customers and provide personalized recommendations about content.

Dynamic pricing with the help of AI allows organizations to optimize the generated revenue. Airlines, hotels, and ride-sharing services (such as Uber) apply AI technology in dynamic pricing.

4. Product design and R&D: Accelerating Innovation

AI facilitates quicker innovation due to faster research and development processes, thereby bringing products to the market even faster.

Drug discovery is being transformed by AI, which can analyze vast datasets to identify potential drug candidates much faster than traditional methods. Pfizer and Moderna leveraged AI during the COVID-19 pandemic to accelerate vaccine development. AI algorithms analyzed protein structures and predicted immune responses, significantly shortening the timeline from discovery to clinical trials.

AI is also being helpful in material science. Companies like BASF employ machine learning methods to find materials that have a certain property. This reduces the trial-and-error process that would consume a lot of time and money.

To conclude, artificial intelligence represents more than a technological upgrade; it signals a profound shift in how value is created and decisions are made in modern organizations. By combining data, automation, and advanced analytics, AI empowers companies to move from reactive strategies to proactive and even predictive approaches.

2 Key Figures

$15.7 trillion

AI is expected to contribute $15.7 trillion to the global economy by 2030, with the greatest gains coming from increased productivity and consumption-side effects.

30-50%

AI-powered predictive maintenance can reduce equipment downtime by 30-50%.

3 startups to draw inspiration from

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