Exploring manufacturing in the age of AI Part 1: Industry leaders share their skepticism

The AI hype is real, and it’s everywhere.

From major B2B SaaS companies like Salesforce and Notion to industrial leaders like Siemens, it’s clear that everyone is racing to get in the AI game. 

But is it really all just hype? Or is there real potential here?

Some venture investors, like Jon Medved, CEO of OurCrowd, view AI as a space with significant potential despite current market hype. While Medved acknowledges that AI valuations may be inflated, similar to the dot-com era, he emphasizes that the business opportunities within the sector are rooted in real value, not just buzz. (Source: Adebayo, Kolawole Samuel, Forbes)

In fact, generative AI is surpassing even our most ambitious expectations, unlocking capabilities we once believed were years away. Praveen Rao, Industry Head of Manufacturing at Google Cloud, highlighted this urgency in his AI-powered Operations of the Future presentation at IMTS 2024, 

"Gen AI can compress timelines by as much as a decade. Whatever we thought was possible ten years from now, we can do today. If you don’t act, [your competitors] will be ten years ahead of you."
Praveen Rao​

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This AI shift represents a major inflection point for our industry. Just as the assembly line and the Toyota Production System revolutionized manufacturing in their time, the purposeful introduction of generative AI promises an even greater and more transformative impact. 

However, despite the excitement and potential of AI, many manufacturing leaders are approaching it with caution. Our recent survey of manufacturing leaders reveals several shared apprehensions about adopting AI in their operations. These concerns highlight a mix of skepticism and uncertainty about how AI will integrate into an already complex industry:

1. "I see the potential, but…"
   Many leaders recognize the power of AI but feel their current systems are not ready to take full advantage of it. Strengthening existing infrastructure—both technological and cultural—is a necessary first step before AI adoption.
2. AI’s double edged sword
   Some view AI as a tool that could either elevate or harm the industry, depending on how it’s implemented. Without purposeful, strategic adoption, there’s a risk of unintended consequences, from over-reliance to misalignment with shop floor realities.
3. Fear of skill erosion
   A recurring concern is over-reliance on AI leading to a loss of critical human skills. As one leader put it, “I’m worried about a future where people no longer know how to do the work that gets automated through AI.” In industries as precise and data-driven as manufacturing, this fear is not unfounded.
4. Frontline worker adaptability
   There’s also skepticism about how well frontline workers—especially those unfamiliar with digital systems—will adapt to AI. For some leaders, this apprehension extends to generational differences in tech adoption, with younger workers embracing it more readily than seasoned employees.
5. Trust in AI’s accuracy
   Manufacturers rely on deterministic decision-making, where there’s often a single “best way” to do something. Concerns around AI “hallucinations” (spitting out incorrect information) or inconsistent outputs raise questions about its reliability and ability to deliver on promises.

These sentiments demonstrate a major tension: manufacturers see AI’s potential, but they’re hesitant to dive in without confidence in the tools, infrastructure, and workforce readiness needed to make it successful. 

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At Amper, we believe these challenges can be overcome with education and a solution that is accessible, transparent, and built on reality. By addressing these concerns head-on, manufacturers can move forward with the confidence needed to fully embrace AI. In the coming weeks we’ll be exploring AI’s role in the manufacturing industry. If you’re interested in staying in the know, be sure to subscribe to our newsletter.