Nearly 8 in 10 manufacturers will boost AI investment in 2024

97% are optimistic about AI's promise to create jobs.

Industrial leaders are increasingly optimistic about the future of manufacturing, with almost all surveyed expressing confidence in the value of AI.

Augury's second annual "The State of Production Health 2024" report shows that as AI programs become more trusted, accessible, and scalable, over three-fourths (83%) of industrial leaders are investing more in AI in 2024.

This represents a 63% increase from 2023, and the report shows a 300% year-on-year increase in the number of respondents citing no roadblocks to AI adoption.

The report, based on insights from over 700 global manufacturing leaders, identifies capacity and supply chain management as key focus areas for the industry.

Since 2023, there has also been significant success in capitalizing on AI for production health use cases. Twice as many respondents say they can now quantify benefits for machine health and reduced downtime (36% vs. 16%), and three times as many report improvements in process health, maximizing yield and capacity (40% vs. 13%).

Supply chain disruptions and capacity issues have emerged as top challenges for manufacturers, with 90% of respondents anticipating more frequent disruptions in the coming months.

While AI has shown promise in addressing these challenges, the report highlights a disconnect between the importance of the supply chain and AI adoption among industrial leaders. Increasing capacity has become a priority for leveraging AI, as cited by 44% of respondents.

The report also reveals concerns about the aging workforce and a skilled talent gap in manufacturing, with 91% of leaders expressing worries that retiring veterans could exacerbate knowledge gaps.

However, AI technologies have been instrumental in addressing these workforce challenges, with investments shifting towards capacity-building and automation to mitigate resource issues.

Despite the effectiveness of AI, the report shows that most AI pilots have not reached scale, prompting manufacturers to increase AI spending. The key takeaway is the need to target investments in production health solutions to better visualize and act on data connecting machines, processes, and operations.

By doing so, manufacturers will be better positioned to meet production goals and address the key challenges facing the industry today.