How Artificial Intelligence (AI) is Revolutionizing Manufacturing Operations
Artificial Intelligence (AI) is everywhere. It’s on your phone giving you app suggestions. It’s in your car routing you around traffic. It’s on your TV recommending a new show you might like. And now, increasingly, it’s being employed by leading manufacturing firms to optimize their operations in new and novel ways.
Firms we work with in this space tell us daily about their ongoing labor shortage challenges, their desire for more precise forecasting targets, and their need to improve daily core processes continually. Thankfully, AI is here to help.
Here are a few ways leading firms are making use of this advanced technology:
Help control insurance costs. No firm sets out to waste money, but fluctuating inventory costs can quickly overrun a budget if left unmanaged. AI technologies can improve forecasting accuracy by up to 20%, leading to reductions in carrying costs of 5% or more.
Identify equipment failures. New technology systems can help teams identify product/equipment failures early – before major breakdowns occur. With fewer losses, workers are kept safe, and lost time is kept to an absolute minimum.
Enhance safety culture. An all-too-common cause of accidents in the workplace is time spent in unsafe areas. AI can help monitor employees and provide real-time data back to their managers. From there, supervisors can course correct towards safer conditions leading to fewer claims, better loss ratios, and a stronger narrative with insurance underwriters.
We’re still in the early days, and there’s no telling what the next technological breakthrough in AI for manufacturing companies will be. Now more than ever, it’s critical to stay current about trends like these as worker safety and mandates to control and cut costs remain paramount.
This material has been prepared for informational purposes only. BRP Group, Inc. and its affiliates, do not provide tax, legal or accounting advice. Please consult with your own tax, legal or accounting professionals before engaging in any transaction.