Industrial AI: How Is Artificial Intelligence Transforming the Manufacturing Industry?

The adoption of artificial intelligence (AI) in the industrial sector is accelerating as companies face a tight labor market, increasing pressure to maintain high corporate profits, and the need to improve supply chain resiliency. Industrial AI has the potential to increase productivity, reduce costs, and protect margins, making it an attractive solution for businesses looking to stay competitive in the Industry 4.0 era.

Key Takeaways:

• The tight labor market and slow growth in the workforce make AI-based automation an attractive solution for companies.
• Corporate profits have been growing faster than wages and the overall economy, putting pressure on executives to maintain profitability.
• The COVID-19 pandemic highlighted vulnerabilities in supply chains and production lines, leading to increased interest in onshoring production and improving resiliency through industrial AI.
• Companies such as DHL, Emerson Electric, GE, Intel, NVIDIA, Siemens, Microsoft, Rockwell Automation, and Walmart are embracing industrial AI to improve various aspects of their operations, from manufacturing and automation to supply chain management.
• Walmart plans to have 65% of stores serviced by automation and 55% of fulfillment center volume moved through automated facilities by the end of FY 2026, aiming to improve unit cost averages by 20%.
• AI-powered supply chain technology company Symbotic implemented automation at Walmart's first automated distribution center for packaged foods and other shelf-stable household items.

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