The manufacturing industry is in a state of constant, incremental transformation. This is currently being driven by rapid advancements in artificial intelligence (AI) and automation, built on a foundation of ecosystem collaboration.
Against this backdrop, HCLTech hosted a panel at the World Economic Forum in Davos featuring leaders from Flex and Rockwell Automation.
Unlocking transformation in manufacturing
The potential for transformative efficiency gains in manufacturing is immense. Moderator Dr. Saikat Chaudhuri noted: “The trillion-dollar opportunity lies in optimizing core operations, not consumer-facing technologies.”
Ajay Bahl, Chief Growth Officer, Americas, MEGA Industries at HCLTech, highlighted the rapidly changing nature of products as a key driver of transformation: “When the product definition changes, everything — how you design, build and deliver — changes too.”
He pointed to the automotive industry's evolution, with cars transitioning from mechanical systems to complex “computers on wheels,” necessitating a complete overhaul of manufacturing processes and supply chains.
Paul Baldassari, President, Global Manufacturing and Services at Flex, then mentioned how automation is transforming repetitive tasks like visual inspection. “On the shop floor, we interact more with our environment visually than verbally. Automating these tasks frees up workers for more engaging roles.”
He described how automation has advanced over two decades, citing smartphone manufacturing: “Imagine manually inspecting the 2,000 tiny components in a smartphone. Automation eliminates this tedious work, making the industry more efficient.”
Ajay did acknowledge the challenges this rapid pace of change poses: “Manufacturing is capital-intensive, requiring long-term planning. With AI and product innovation moving so quickly, planning investments for five, 10, or 20 years is increasingly difficult.”
Maximizing existing infrastructure with AI
Integrating AI into existing manufacturing systems is critical but challenging. Alexandra Schwertner-Farley, Artificial Intelligence Strategy Leader at Rockwell Automation, explained: “You can’t just say, ‘Let’s rip and replace everything.’ The focus should be on enhancing what’s already there.”
She illustrated how AI can optimize existing systems, such as using predictive maintenance on variable frequency drives: “By analyzing motor current signals, we can predict issues early, achieving significant efficiency gains.”
This incremental approach allows manufacturers to modernize without the prohibitive costs of replacing entire systems.
Collaboration and ecosystems: The key to continued innovation
The panelists emphasized that no single company can tackle the challenges of AI and automation alone. Building collaborative ecosystems is essential for driving innovation, as it allows companies to pool resources, share knowledge, and stay competitive in a rapidly evolving landscape.
Farley highlighted the importance of open data and shared asset models, stating: “Shared data and frameworks are critical to helping companies keep pace with technological changes and avoid reinventing the wheel.”
Ajay added that partnerships with startups and research institutions bring new perspectives and access to cutting-edge technologies, enabling established players to remain agile in the face of disruption. He emphasized: “Startups often have the agility and boldness to take risks that larger organizations cannot afford. Collaborating with them creates a win-win scenario for fostering innovation.”
Overcoming challenges and bias
Adopting AI and automation isn’t without hurdles. Ajay pointed out the challenges of “forced obsolescence,” where products are designed to require frequent updates, adding complexity to manufacturing.
“Forced obsolescence not only adds to costs but also complicates long-term planning and sustainability goals. We must find ways to align innovation with longevity and efficiency to reduce waste and foster trust with consumers.”
He also addressed the inherent resistance within the conservative manufacturing sector: “The industry’s capital-intensive nature makes it cautious, but this caution can result in missed opportunities. Overcoming this bias requires showcasing tangible benefits from AI integration.”
One practical approach is to start small. By implementing AI on a pilot basis in specific processes, manufacturers can demonstrate measurable improvements in efficiency and cost savings, easing fears about the risks of full-scale adoption.
The panel also discussed the cultural shifts needed to embrace AI and automation, particularly in leadership.
The human element: Upskilling and empowerment
The advent of AI and automation brings new opportunities for the workforce, but it also demands significant investment in upskilling. As Vallasari explained: “Automation allows us to free workers from monotonous tasks, but we must ensure they are equipped with the skills to take on more strategic roles.”
Upskilling programs need to focus on both technical and soft skills, such as adaptability and problem-solving, to prepare workers for future challenges. “Keeping workers curious and encouraging lifelong learning is critical; they’ll not only adapt to change but drive it,” said Farley.
To inspire the next generation, the panelists stressed the importance of making manufacturing jobs appealing. Initiatives such as internships, hands-on learning, and partnerships with educational institutions can help bridge the skills gap.
“Young professionals want to work on cutting-edge technologies that have a meaningful impact. We need to show them that manufacturing is where real-world innovation happens,” added Ajay.
Additionally, AI itself can be a tool for training. Advanced simulations, virtual reality and AI-driven mentorship programs can help workers learn new skills more effectively.
A path toward resilience and excellence
The manufacturing industry is at the threshold of a revolutionary era. By addressing cultural resistance, fostering collaboration and investing in people, companies can navigate this transformation successfully.
“The real value of AI and automation lies not just in technology but in people’s ability to adapt and innovate. It’s not about replacing jobs but about evolving them to create a more resilient and efficient industry,” summarized Dr. Chaudhuri.
