By Stephen Roebuck, Associate Director of Consultancy, Peninsula Australia

 Australian manufacturing businesses have their sights set on improving productivity to meet ever-evolving consumer demand through the utilisation of AI.

Indeed, this was demonstrated by a recent CommBank report, Manufacturing 2024 Insights Report, which found that 71% of manufacturers are focusing on AI to boost efficiencies. However, with 41% of respondents to the same report identifying labour skills levels as the number one challenge for their business, raising productivity is no easy feat.

This is where new and emerging technologies like AI have the potential to transform the industry – provided they are used correctly.

 Streamline safer processes

As the Industrial Revolution proved, any technology or machinery that can automate physically demanding, tedious and manual processes is transformative for productivity.

AI is enabling massive leaps in safety, efficiency, and output for manufacturing businesses around the world, reducing the reliance on human observation and labour. Therefore, AI can help reduce the risk of accidents, optimise workflows, and enhance overall operations.

In fact, AI’s insights into workplace safety and identification of potential hazards are especially useful for high-risk industries like manufacturing.

However, the uptake of new and emerging AI technologies that have become popular in many industries, such as the education and marketing sectors, is moving slower in the Australian manufacturing industry.

This is primarily attributable to the costs involved with implementation, which are prohibitive for some businesses. However, this is likely to change as the Federal Government’s $15 billion National Reconstruction Fund funnels more financing into areas including value add-in resources and renewables.

But without proper training for workers to use new equipment that is powered by AI, business owners and employers are exposed to a whole new range of risks.

 Train and maintain

Effective training is critical in delivering on the promise of AI with human intervention still a significant part of the picture in many new technologies and machinery.

If AI systems are not properly calibrated or maintained, they may malfunction. This would potentially cause injury or property damage, or even result in operations coming to a standstill.

It is the responsibility of business owners and employers to ensure that employees are adequately prepared to operate equipment, including through:

• A thorough risk assessment of any process, plant or equipment which could cause harm
• access to easy-to-understand safe operating procedures, in addition to comprehensive safety training, for all machinery
• implementing thorough pre-start checklists to identify potential hazards before operation
• providing employees with the correct personal protective equipment (PPE) for their tasks
• conducting routine maintenance on equipment to prevent malfunctions
• ensuring any employee that operates machinery possess, or is eligible to obtain, necessary licenses or certifications
• having adequate supervision in pace, especially for new or inexperienced employees, and
• facilitating communication channels for employees to report concerns or ask questions about machinery operation.

Although it may seem overly cautious at times, a conservative approach to safety is best. As the saying goes, it is better to be safe than sorry. The same is true when introducing modern technologies such as AI in the workplace, especially if staff are resistant to change.

Feedback fuels success

It is normal for employees to feel like their job is threatened by the introduction of new technology or machinery, or to express concern that they will not be able to operate it correctly, particularly those responsible for manual or labour-intensive tasks.

Consider seeking feedback from workers before the introduction of new equipment to sense-check their appetite for it, and then proactively address concerns that they may have.

There may even be a requirement to Consult with your workforce if the change is significant as per any applicable Industrial Instrument (i.e., an Award or Enterprise Agreement) before you embark on introducing new technology. The rollout can then be tailored to address these issues, which will thereby facilitate a smoother transition.

AI has the potential to boost manufacturing productivity in Australia, but only if business owners, employers and managers ensure workforces are equipped to use it correctly.

 Stephen Roebuck is responsible for the content, documents and training that enable Peninsula Australia, a leading HR and WHS firm, to deliver 24/7 employment relations advice to thousands of SME business owners and employers across the country. 

 He has over 13 years’ experience in employment and workplace relations in Australia, including 11 years at Peninsula Australia, formerly known as Employsure. Stephen started with the business as an Employment Relations Consultant in 2013 and has risen through the ranks since.