Artificial intelligence (AI) transformation tools will play a critical role in helping leaders address five critical trends that are shaping the future of manufacturing, according to research from Google Cloud.
The importance of technology has risen as manufacturers face unprecedented pressure during today’s dynamic business landscape, including the relentless pace of e-commerce combined with a constant threat of supply chain disruptions, the company said.
Those conditions have led to five critical trends that are shaping the future of manufacturing:
- Business buyers are increasingly adopting consumer-like behaviors, forgoing traditional, linear sales cycles, and demanding digital-first experiences. Manufacturers can address that by leveraging AI to personalize product recommendations, streamline online ordering, and provide real-time customer support.
- A rising need for resilience: after the pandemic exposed the fragility of global supply chains, manufacturers found they needed to enhance visibility, improve forecasting, and leverage technology to identify and mitigate potential risks. They can achieve that by using AI to enable proactive responses to disruptions by analyzing data from various sources like sensor data, visual inspections, and logistics tracking.
- Bridging a digital skills gap, as the manufacturing industry is facing a severe shortage of skilled workers, exacerbated by the rapid pace of technological advancements. That talent gap poses a significant challenge to productivity, innovation, and long-term growth. So manufacturers must invest in upskilling and reskilling their existing workforce, while also attracting and retaining top talent through competitive benefits and engaging work environments.
- Sustainability is a business mandate, deeply intertwined with business success as consumers are increasingly demanding sustainable products and practices, and regulators are imposing stricter environmental standards. To meet those needs, manufacturers must use AI agents to automate data collection and analysis, helping them embrace sustainable practices across their entire value chain, from sourcing raw materials to minimizing waste and reducing their carbon footprint.
- Unlocking holistic insights is difficult since many manufacturing organizations operate with siloed data residing in disparate departments and systems. The data is also incredibly diverse, often including OT, IT, and ET. This can lead to missed opportunities for optimization and inefficient decision-making, unless companies establish data interoperability and unlock the potential of AI.
To help manufacturers cope with those challenges, Google Cloud this week announced the latest release of its Manufacturing Data Engine (MDE) product.
According to the California company, its MDE technology provides a unified data and AI layer that facilitates the analysis of multimodal data for better supply chain visibility, supports assistive search for bridging talent gaps, and enables AI agents to optimize sustainability initiatives. Furthermore, MDE helps contextualize various types of data, including Operational Technology (OT) data from the shop floor, Information Technology (IT) data from enterprise systems, and Engineering Technology (ET) data from design and simulation tools.
Google Cloud says its system also establishes a digital thread by connecting data back to its source, ensuring traceability and a holistic understanding of the product lifecycle. That approach allows for the seamless integration of enterprise data with manufacturing data, enabling use cases like forecasting financial impact with machine data, or optimizing production schedules based on demand signals.
