Artificial Intelligence (AI) is everywhere. It’s on your phone, giving you app suggestions. It’s in your car, routing you around traffic. It’s on your TV recommending a new show you might like. And now, increasingly, it’s being employed by leading manufacturing firms to optimize their operations in new and novel ways.
Firms we work with in this space tell us daily about their ongoing labor shortage challenges, their desire for more precise forecasting targets, and their need to improve daily core processes continually. Thankfully, AI is here to help. Below are just a few of the ways that leading firms are making use of this exciting upgrade:
- Using AI to control insurance costs. No firm sets out to waste money, but fluctuating inventory costs can quickly overrun a budget if left unmanaged. AI technologies can improve forecasting accuracy by up to 20%, leading to reductions in carrying costs of 5% or more.
- Using AI to identify equipment failures. New technology systems can help teams identify product/equipment failures early– before major breakdowns occur. With fewer losses, workers are kept safe, and lost time is kept to an absolute minimum.
- Using AI to enhance safety culture. An all-too-common cause of accidents in the workplace is time spent in unsafe areas. Artificial intelligence can help monitor employees and provide real-time data back to their managers. From there, supervisors can course correct towards safer conditions leading to fewer claims, better loss ratios, and a stronger narrative with insurance underwriters.
We’re still in the early days, and there’s no telling what the next technological breakthrough in AI for manufacturing companies will be. Now more than ever, it’s critical to stay current on trends like these as worker safety and mandates to control and cut costs remain paramount.
BKS is here to help keep you, as our client, on the vanguard with insights on new and emerging technologies in the manufacturing industry.
This material has been prepared for informational purposes only and was generated from information provided to BKS from the client and/or third-party sources. Therefore, BKS makes no warranty or representation(s) as to the accuracy or appropriateness of the data and/or the analysis herein. This information is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your tax, legal and accounting advisors for those services.