Over the past four years, WCMP conducted interviews with over 400 manufacturing leaders and held five regional focus groups. Previous surveys showed that 72% of manufacturers had no plans for AI! But that is changing.
The latest data reveals that nearly half are now preparing to adopt the technology.
Brinkman notes, "We're seeing real momentum. But it's not fast enough. The rest of the world isn't waiting and neither should we."
Barriers to AI Adoption in Wisconsin Manufacturing
Despite enthusiasm, several challenges hinder AI adoption:- Cost: Many manufacturers, especially smaller ones, find AI integration expensive.
- Talent Shortages: AI adoption requires a skilled workforce, which can be difficult to find in Wisconsin's manufacturing sector.
- Fear of Disruption: There is general fear that introducing AI could disrupt operations or lead to job losses.
However, these barriers can be overcome with the right strategies and support. For instance, many Wisconsin manufacturers are turning to local universities and technical colleges for workforce training and upskilling.
Actionable Steps for Manufacturers
The "Seize the AI Advantage" report outlines three clear actions manufacturers can take immediately:- Empower an Internal AI Champion: Designate someone curious, credible, and action-oriented to lead AI initiatives. This champion will not only ensure a smoother adoption process but also act as the go-to resource for all things AI.
- Start Small with Quick Wins: Implement AI for tasks like customer email traige, HR chatbots, and predictive maintenance. These small wins can build momentum and prove AI's value without overwhelming the organization.
- Think Long-Term, Act Now: While quick wins are important, it's crucial to balance them with a long-term roadmap. Manufacturers should set their sights on integrating AI into more complext processes like supply chain optimization, real-time production monitoring, and autonomous robotics.
Wisconsin's AI Ecosystem: A Growing Network of Support
The state is increasingly becoming a hub for AI adoption, with several key initiatives aimed at supporting manufacturers:- Microsoft's AI Co-Innovation Lab for Manufacturing: Located at the University of Wisconsin-Milwaukee's Connected Systems Institute, this lab is designed to serve 270 businesses by 2030, including 135 manufacturing businesses. It provides a platform for manufacturers to develop and experiment with AI solutions tailored to their needs.
- UW-Stout's Center for Advanced Manufcaturing and AI (CAM-AI): This center integrates AI into manufacturing processes to enhance productivity and innovation. A recent $647,000 grant from the Wisconsin Economic Development Corporation (WEDC) will support CAM-AI's efforts to help small- and medium-sized manufacturers adopt advanced technologies.
- Wisconsin's Technical Colleges: They are pivotal in providing training and resources to upskill the workforce in AI technologies. Many manufacturers are partnering with these colleges to prepare their teams for AI adoption.
Brinkman asserts, "Wisconsin has the talent and tools, and the grit to lead the nation in AI adoption. But we must act fast, act smart, and act together."
The Benefits of AI in Manufacturing
Adopting AI can lead to numerous benefits for Wisconsin's manufacturers, including:- Increased Productivity: AI can automate routine tasks, freeing up valuable human resources for more complex operations. Predictive maintenance powered by AI can also reduce downtime and ensure equipment operates at peak efficiency.
- Addressing Workforce Shortages: AI can assist with labor shortages by automating manual tasks. This is especially important as Wisconsin's manufacturing workforces ages and companies struggle to find skilled workers.
- Enhanced Competitive Edge: Manufacturers who adopt AI early can position themselves as leaders in innovation, gaining a competitive edge in both local and global markets. Companies like Harley-Davidson and Kohler are already leveraging AI to optimize their supply chains and improve their production processes.
The Risks of Inaction
Manufacturers who delay AI adoption risk:- Falling Behind Competitors: Global competitors are rapidly adopting AI, and those who hesitate may struggle to catch up. Countries like China and Germany are already using AI to dominate manufacturing sectors, leaving American manufacturers at a disadvantage.
- Missed Opportunities: AI can uncover efficiencies and new market opportunities that late adopters may miss. Manufacturers who wait too long could miss the chance to lead their industries.
- Increased Operational Costs: Without AI, manufacturers may face higher labor and operational costs, impacting profitability. AI can reduce waste, improve quality control, and streamline processes, ultimately saving money.
