The industrial sector is at a pivotal moment. It's no longer a question of whether companies should adopt AI, but when. Those already leveraging industrial AI are reaping significant benefits, gaining a substantial competitive advantage through increased efficiencies, reduced costs, and minimized environmental impact. The message is clear: industrial companies that hesitate to adopt AI risk falling behind.
In our latest industrial AI survey report, users of AI-powered digital twins were 3X more confident about achieving their 2024 targets. Respondents not using AI complained that 2024 will be the same as the previous year, that their company misses too many opportunities to improve, and have been too slow to respond to foreign competitor’s rapid expansion. The difference in sentiment and confidence between the two groups was polarizing, with AI technology being the only difference.
Consider the case of a major chemical manufacturer that implemented AI-driven process optimization. Within six months, they achieved a 15% reduction in energy consumption and a 10% increase in product yield, translating to millions in annual savings.
Another example is a steel producer that used AI to optimize their furnace operations, resulting in a 7% decrease in raw material usage and a 5% boost in overall production capacity.
Industrial AI users perform higher than other coworkers
McKinsey has reported that AI users perform higher than coworkers by a factor of 3:1, which makes them more valuable to their organization. It's important to reinforce that AI doesn't replace human expertise; rather, it enhances it. As a recent article on AI in creative industries pointed out, AI tools can give people with “mediocre skills” seemingly impressive results, but true mastery still requires human creativity and expertise.
The same principle applies in the industrial space. AI doesn't turn process engineers into data scientists overnight. Instead, it expands their capabilities, allowing them to work faster and more accurately. For instance, at a paper mill, engineers used AI to analyze vast amounts of production data, identifying optimal process parameters that human analysis alone had missed. This led to a 20% reduction in quality defects and an 8% increase in production speed. In our ever-changing industrial landscape, agility is key to competitive success.
Industrial AI is creating truly connected plants
Moreover, industrial AI is breaking down traditional silos in manufacturing organizations. It's creating truly connected plants, not just in terms of digital infrastructure, but by fostering collaboration between cross-functional teams. Data scientists, process engineers, and operations staff can now share their specialist knowledge more effectively, solving problems and identifying growth opportunities at unprecedented speeds, providing full visibility to management, and retaining the knowledge for auditing or training purposes.
A prime example of this collaborative power comes from one of our customers at Fero Labs. An engineer with minimal access to our AI solution, autonomously tackled a problem that had stumped the company for months. The team had been trying to fully quantify their sulfur emissions and post-process sulfur treatment, dedicating over 200 R&D hours to the project without much progress. Using Fero Labs' no-code solution, this engineer created a working model in just four hours, not only solving the previously intractable problem but also reducing production costs and increasing the team's process knowledge.
This case illustrates how industrial AI doesn't replace human expertise but amplifies it. The engineer's domain knowledge, combined with the AI's data processing capabilities, achieved in hours what a team couldn't accomplish in months. Embracing the full power of Fero Labs’ software didn’t require power-training or months of certification. This engineer was able to adapt it to his processes with minimal effort and came out a Profitable Sustainability hero by positively impacting his plant’s primary economic targets whilst significantly reducing their environmental impact.
As we move forward, it's clear that industrial AI is not just a tool, but a transformative force in manufacturing. It's enabling companies to operate more efficiently, sustainably, and collaboratively. Those who embrace this technology now will be well-positioned to lead in their industries, while those who delay risk being left behind in an increasingly competitive global market.
Start today. Speak with an industrial AI optimization expert at Fero Labs.
