Augury Report: 83% of Manufacturers Will Increase AI Spending in 2024, 97% See AI’s Promise to Create Jobs
July 16 2024 - 9:00AM
Business Wire
The second annual “State of Production Health”
report reveals that manufacturers’ AI and workforce investments are
paying off, capacity and supply chain have emerged as key focus
areas
Augury, a leading provider of industrial AI solutions that
improve machine health and process health, today released its
second annual State of Production Health report, which identifies
challenges, trends, and best practices in manufacturing’s quest to
balance the competing demands of profits, people, and the planet.
The report features insights from over 700 global manufacturing
leaders of companies with annual revenues exceeding $100 million
and aims to help manufacturing organizations identify improvement
opportunities.
“Our 2024 findings paint a positive outlook for the industrial
sector and technology adoption, as almost all (96%) leaders feel
optimistic about manufacturing’s future,” said Saar Yoskovitz,
Augury’s CEO and Co-Founder. “Manufacturers’ trust in the value of
AI is rapidly growing as they enhance their organizations’ AI
skills and achieve higher returns. While measuring AI’s influence
on vital business objectives remains challenging for some, many
industrial leaders have found their footing in 12 short months.
This group of innovators will pull ahead as industry leaders and
provide a blueprint for achieving the Industry 4.0 ideal.”
Key insights from the report include:
AI Proves Its Worth and Gains Trust for Production
Health
As AI programs become more trusted, accessible, and scalable,
over three-fourths (83%) of industrial leaders are investing more
in AI in 2024, up from 63% in 2023, and the report shows a 300%
increase YoY in the number of respondents citing no roadblocks to
AI adoption.
Since 2023, there has been a lot of success capitalizing on AI
for production health use cases. Now, twice as many respondents say
they can quantify benefits for machine health/downtime (36% vs.
16%), and three times as many report impact to process
health/maximizing yield and capacity (40% vs. 13%).
Supply Chain and Capacity Emerge As Top Challenges
Nine in 10 (90%) of manufacturers anticipate more frequent
supply chain disruptions over the next 12 months. Though AI
demonstrates great promise in this arena, the report data reveals a
complex relationship between supply chain hurdles and AI. While
manufacturers rank the supply chain as the top production obstacle
(cited by 25% of respondents) and a significant AI use case (43%),
it remains industrial leaders’ lowest-ranked objective for
leveraging AI. This discrepancy may indicate that manufacturers
believe their existing investments in the supply chain are
effective, or they have not yet fully realized AI's potential
impact. Increasing capacity has now emerged as the number-one
objective for leveraging AI, cited by 44% of respondents.
Workforce Concerns Require More Attention
Most (91%) industrial leaders worry that retiring veterans
exacerbate the knowledge gap in manufacturing. Luckily, the
findings indicate that AI technologies have provided welcome relief
in addressing the aging workforce and skilled-talent gap. In 2023,
the top objective for leveraging AI was upskilling the workforce.
One year later, while workforce constraints and upskilling remain
concerns, the emphasis on investment in this area is decreasing.
With near-unanimous agreement (97%) that AI and advanced
technologies will help create new jobs in the manufacturing
industry, shifting investments to areas like capacity may further
mitigate resource issues by enabling AI-driven automation and
workflow improvements.
“Though AI has started proving its effectiveness, nine out of
ten industrial leaders say that just 11-50% of their AI pilots have
reached scale,” Yoskovitz added. “To bridge this gap, manufacturers
are increasing AI spending. It will be critical to target
investments specifically around production health solutions to
better visualize and act on data that connects machines, processes,
and operations. Those who do will be better positioned to meet
production goals while addressing today’s key challenges for
manufacturers.”
Click here to access Augury’s second annual “The State of
Production Health 2024” report. To learn more about Augury and its
Production Health solutions, visit www.augury.com.
About The State of Production Health 2024 Report
Conducted in March 2024 by Endeavor Business Intelligence and
commissioned by Augury, “The State of Production Health 2024”
report features insights from over 700 U.S. and Europe-based
manufacturing executives (director level or higher) at
organizations with global revenues of $100M+ (including 40% with
revenues exceeding $500B). Represented manufacturing verticals
include building materials, cement, chemicals, consumer packaged
goods, food and beverage, pharmaceuticals, metals and mining, oil
and gas, paper and packaging and wood products. All respondents
report their organizations have at least five manufacturing
sites.
About Augury
A leader in Machine Health and Process Health solutions, Augury
uses purpose-built AI technology, trained by industry experts and
the world’s largest data library, to help manufacturing and
industrial companies eliminate production downtime, improve process
efficiency, maximize yield, and reduce waste and emissions. Our
global customers achieve 3-10x ROI, often in a matter of months.
Together with our customers, we are pioneering Production Health to
build a world where the combined work of people and machines makes
life better in every way.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240716938468/en/
Media Audrey Surette augury@pancomm.com