KPMG's extensive research into AI in manufacturing reveals a transformative blueprint for manufacturers aiming to harness the power of artificial intelligence.
AI has become a necessity rather than an option, enabling predictive maintenance, intelligent automation and data-driven optimisation.
By engaging with executive leaders across eight key global markets, this comprehensive report outlines actionable insights on how AI can transform industrial ecosystems to unlock AI’s immense value and create competitive advantage.
Reimagining manufacturing
Key insights
- Strategic objectives
- Promising results
- Implementation challenges
- Quotes
Driving efficiency is a core strategic objective for manufacturing
AI is a competitive necessity and early results are promising
93%
believe that organisations in their industry that embrace AI will develop a competitive edge over those who do not.
72%
intend to use AI to improve efficiency, 77 percent to drive growth.
96%
have experienced operational and efficiency improvements and 62% experiencing an ROI of greater than 10%.
Implementation challenges and sustainability concerns
56%
have faced data challenges when implementing AI.
78%
believe meeting sustainability targets is more important than AI.
85%
have plans in place to mitigate the increased energy demands of implementing AI technology.
Realising value from your AI transformation journey
To address these challenges, KPMG introduces the three phases of AI value — a framework designed to guide manufacturers through the AI adoption journey.
This phased approach can unlock significant value through AI-driven transformation, ensuring manufacturing companies remain competitive and innovative.
Click on each of the phases to find out more.
Enable
The Enable phase focuses on enabling people and building AI foundations. Organisations appoint a responsible executive, create an AI strategy, identify high-value use cases, boost AI literacy, align with regulations and establish ethical guardrails. AI pilots are launched across functions, while cloud platforms and pre-trained models are leveraged with minimal customisation.
Embed
The Embed phase integrates AI into workflows, products, services, value streams, robotics, and wearables, delivering greater value. A senior leader drives enterprise-wide workforce redesign, re-skilling and change, embedding AI into operating models with a focus on ethics, trust and security. AI agents and diverse models are deployed, supported by cloud and legacy tech modernisation, while enterprise-wide data enhances operations.
Evolve
The Evolve phase evolves business models and ecosystems, using AI and frontier technologies like quantum computing and blockchain to solve large sector-wide challenges. AI orchestrates seamless value across enterprises and partners. Emphasising ethics and trust with real-time security, this phase uplifts human potential with broad and deep workforce training, fostering a creative, innovative and value-driven future.
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