Generative AI & Manufacturing
With the rise of ChatGPT and generative AI technologies emerging into many business sectors, many manufacturers, distributors and supply chains are getting in on the game. Benefits such as instant insights, forecasting, and procurement control towers are exciting companies and decision makers who are ready for the next step in their digital transformations.
With the implementation of generative AI into manufacturers and their supply chains, businesses will have the ability to detect production progress and hiccups in real time time, without the need of a data analyst. With this all-access, self-service, efficient power, AI can detect issues and immediately communicate them to supply chain managers, who in turn can make all necessary corrections. Improving processes for the future is key to not only returning businesses to normal operations, but the global supply chain as a whole.
As of January of this year, studies show that 89 manufacturing sectors across the world are working hand in hand with OpenAI, the developers of ChatGPT, to improve their business processes. AI in manufacturing market size was valued at roughly 2.3 billion USD in 2022 and is expected to grow to around 16.3 billion USD by 2027 giving it a CAGR of 47.9% from 2022 to 2027. This drastic growth can be directly linked to the availability of big data and automation integrations. The 4th industrial revolution technologies are expected to bring in upwards to 3.7 trillion in value by the year of 2025. AI by itself generates roughly 1.2-2 trillion just through manufacturing and supply chain activities.
With new generative AI tools and capabilities, come many benefits that will increase manufacturing efficiency. Not only will the process cut costs but it will improve customers relationships and satisfaction. Resulting in both internal and external improvements. With these types of advances, costs can be cut in my ways. With new
Generative AI has many benefits that will increase manufacturing efficiency:
- Improved Accuracy: AI forecasting is found to reduce errors by 30-50% in supply chains. With the reduction of errors, lost money in sales is reduced by almost 65%.
- Inventory Optimization: Warehousing costs decreased by 10-40% as lost sales due to out of stock inventory declined.
- Risk Preparedness: 95% of global manufacturers and supply chain operators, although being negatively impacted by the pandemic, roughly 82% now feel prepared to deal with similar events in the future. Their reasoning is they now have abilities to transform their supply chains through digitalization and implementation of AI.
Manufacturers are beginning to look at generative AI as a way to ramp up their operations and increase cash flow. Ready to start generating proactive insights with AI? Request a demo or learn more about how we are helping manufacturers.