How Can Artificial Intelligence Improve Productivity in Manufacturing?

Did you know that artificial intelligence space can grow to up to 52% till the year 2025?

Owing to innovative technologies such as big data and cloud computing, artificial intelligence is now leaving its footprints in manufacturing space. The technology is known to improve the operating efficiency of the manufacturing processes. AI can offer actionable information to managers that can help them lead to better performance and make enhanced business decisions.

Although machine learning and artificial intelligence have the capability of offering critical information to managers, there are many bottlenecks. Many companies are reluctant to sharing sensitive process data, and others are worried about integrating huge amounts of data. While this data has the ability to offer real-time insights, a unified, intelligent system is needed to execute this effectively.

Let’s discuss in details how artificial insights can streamline the manufacturing process:

1. Accurate Demand Forecasting

It is possible to utilize machine learning and artificial intelligence to test numerous models for attaining result and production possibilities. This can help manufacturing firms become more thorough in their information adaption, new product changes, and process changes.

Further, McKinsey says that machine learning can help you achieve overall reductions by 20-50% in inventory spends. A task that takes 1 month when an employee does it can be completed in 24 hours with ML and AI. Hence, saving resources.

2. Personalized Manufacturing

Advancement in AI is, in fact, encouraging manufacturing firms to ensure personalization at every level. This is especially necessary looking at how much personalization sells. People love receiving things or services that are customized according to their needs.

In a survey, customers revealed that they would even pay 20% as the premium for receiving services and products that are personalized.

More than anything, personalized products help your users develop a bond of trust with your brand. You can build strong customer relations. With AI, this is extremely easy as you have user data and patterns which can be utilized to extract actionable insights.

3. Predictive Maintenance

Predictive maintenance is a method of overlooking equipment, inventory, and everything else to keep track of processes. This ensures that the equipment receives service on time. How this can help?

It reduces the downtime of any equipment and avoids overhead costs of replacing equipment due to poor maintenance standards. AI can streamline this activity with sensors so that manufacturing firms can utilize equipment as long as possible and discard faulty ones to avoid mishaps.

4. Optimized Manufacturing

AI has the power to measuring everything from processing time and temperatures to time to market. Using this data and data from external sources, AI can find out an optimized solution for every activity. This means that you can monitor which activity needs to be severely changed and what needs to be modified.

5. Automated Procurement

Supply chain management is crucial for manufacturing companies because everyone needs to stay on their toes round the clock to ensure healthy procurement. With AI, all these supply chain tasks can be managed – right from procurement to market release. Further, strategic sourcing solutions of AI can reduce wastage and extra money spend on mismanagement of the procurement cycle.


Manufacturing companies already have a lot on their plate. If some things can be reorganized with artificial intelligence and machine learning, it can immensely benefit the business. Apart from reduced costs, many additional benefits would be observed in the form of enhanced productivity and high manufacturing standards.

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