AI can boost Australian manufacturing productivity, if it’s used correctly
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 […]