Companies that re-invent their products by combining AI with other digital technologies can reap huge rewards

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The vast majority of manufacturers are turning to artificial intelligence (AI) to “turbocharge” their products and services, finds a new research report from Accenture.

Based on a survey of 500 manufacturing companies in six industries across Europe, North America and Asia, the report notes the ability of AI – particularly when combined with mobile computing and big data analytics – to transform not only core operations, but also worker and customer experiences, and ultimately even business models, and to enable “Industry X.0” strategies.

Yet, the research found that only a small group is already leveraging AI in a way that Accenture refers to as Applied Intelligence – intelligent technology and human ingenuity, combined with analytics and industry expertise, applied at the core of the business – at scale.

For instance, while 98 percent of the surveyed organizations have begun to enhance their offerings with AI, only 16 percent of them have established a holistic AI vision for their business, only 5 percent are committing resources to AI-driven product initiatives, and only 2 percent report that they have begun to leverage AI solutions at scale.

The research also highlights the challenges companies face when trying to use the technology: The concerns cited most often were data quality (identified by 51 percent of respondents); data- and cybersecurity (45 percent); deciding between ‘buying vs. making’ AI-embedded solutions (45 percent), and data-sharing and protecting intellectual property (40 percent).

“The re-invention of industrial products with AI is still in its early stages, and getting it right is anything but easy,” said Eric Schaeffer, senior managing director at Accenture and global lead of its Industrial practice. “However, the successes of the AI leaders in our sample clearly show that it can be done and that the business case for AI in industrial is very strong.”

The report mentions how companies that re-invent their products by combining AI with other digital technologies can reap huge rewards. For instance, it cites other Accenture research showing that mastering AI can enable industrial-equipment manufacturers to boost their market capitalization by as much as 25 percent.