In collaboration with MEXT Technology Center
Unlocking Value from
Artificial Intelligence
in Manufacturing
WHITE PAPER
DECEMBER 2022Cover: Jian Fan, Getty Images – Inside: Getty Images
Contents
3 Foreword
4 Executive summary
5 Introduction
6 1 Unlocking value in manufacturing through AI
8 2 Shedding light on common barriers to industrial AI adoption
11 3 A collection of AI applications in manufacturing
17 4 A step-by-step approach to implementing scalable industrial AI applications
21 Conclusion
22 Contributors
25 Endnotes
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Unlocking Value from Artificial Intelligence in Manufacturing 2December 2022 Unlocking Value from
Artificial Intelligence
in Manufacturing
Foreword
"Ozgür Burak Akkol Jeremy Jurgens
Chairman, Turkish Employers’ Managing Director,
Association of Metal IndustriesWorld Economic Forum
Türkiye has established itself as a key global player Ministry of Industry and Technology and established
in advanced manufacturing and aims to boost by the Turkish Employers’ Association of Metal
its position through Fourth Industrial Revolution Industries (MESS) – joined the World Economic
technologies. In recent decades, the country has Forum’s Centre for the Fourth Industrial Revolution
made significant efforts to position itself as a global Network, the foremost platform helping leaders
innovation hub, excelling in developing state-of-the- anticipate emerging technologies and drive their
art technologies in ground-breaking companies in inclusive and sustainable adoption. The network links
various fields. Artificial intelligence (AI) technology on-the-ground experience and action with global
applications are part of this effort. In principle, AI network-based collaboration, learning and scaling.
could unlock more than $13 trillion in the global
economy and boost GDP by 2% per year.1 This white paper is an output of the ongoing
However, companies struggle to tap into the value partnership between the Forum’s Platform for
that AI applications can create. Shaping the Future of Advanced Manufacturing and
Value Chains and Platform for Shaping the Future
This paper seeks to uncover the hidden potential of of Technology Governance: Artificial Intelligence
AI in the manufacturing sector and the respective and Machine Learning, the Centre for the Fourth
end-to-end systems by providing practical useIndustrial Revolution Affiliate in Türkiye and MESS.
cases and critical enablers to help harness its It highlights case studies from organizations
potential. Coupled with the energy crisis andon the impact, feasibility and scalability of AI in
material shortages facing the world, manufacturing manufacturing. It identifies several opportunities and
players need to go beyond traditional operating lessons from the community on how to increase
methods to drive efficiency and sustainability. operational efficiency, sustainability and workforce
engagement in manufacturing and value chains by
The twin challenges of technological progressusing AI.
and socio-political distress call for new forms
of cooperation that respond to heightened We hope this report will provide decision-makers
demand for localization while recognizing thewith a better understanding of how to unlock the
drivers of connectivity that shape global impact. untapped potential of industrial artificial intelligence
Acknowledging this, the Centre for the Fourth(AI). We look forward to collaborating with you to
Industrial Revolution in Türkiye – mandated by the deploy these technologies responsibly.
Unlocking Value from Artificial Intelligence in Manufacturing 3Executive summary
Recent global developments and an ever-growingThe consultations show that leading manufacturers
list of shocks and disruptions have put further have successfully overcome the challenges
strain on already shaken global value chains.mentioned above, implementing a variety of AI
The complexity of current challenges impactingapplications and achieving a positive impact
manufacturing and value chains calls for the need on operational performance, sustainability and
to go beyond the traditional means of drivingworkforce engagement, mainly in six areas: health
productivity to uncover the next wave of value for and safety, quality, maintenance, production
businesses, the workforce and the environment.processes, the supply chain, and energy
Artificial intelligence (AI) is a crucial enabler of management.
industry transformation, opening new ways to
address business problems and unlock innovation While opportunities enabled by AI in manufacturing
while driving operational performance, sustainability are promising and attracting many leaders,
and inclusion. Even though the impact of AI organizations are looking for a common framework
applications on manufacturing processes is known, that outlines how to implement AI solutions and
the full opportunity from their deployment is still to ensure a successful return on investment.
be uncovered due to a number of organizational
and technical roadblocks. Based on the consultations, this white paper
presents one step-by-step process as an example
Recognizing this need, the Centre for the Fourth of how it is possible to overcome barriers, using
Industrial Revolution Türkiye, together with the the AI Navigator2 developed by the INC Invention
World Economic Forum’s Platform for Shaping Center as a reference:
the Future of Advanced Manufacturing and Value
Chains and Platform for Shaping the Future ofPhase 0: Initiation to build the fundamentals –
Technology Governance: Artificial Intelligence and strategy, data and workforce
Machine Learning, convened industry, technology
and academic experts to shed light on these Phase 1: Ideation to identify potential use cases and
challenges and propose a step-by-step approachconduct a pre-selection
to overcome them. The consultations revealed six
main challenges hindering the adoption and scaling Phase 2: Assessment to select use cases and
of AI applications in manufacturing: identify priorities via gap analysis
1. A mismatch between AI capabilities and Phase 3: Feasibility to complete all required tests
operational needs and studies
2. The absence of a strategic approach and Phase 4: Implementation, which requires iteration
leadership communicationand piloting using agile project management
3. Insufficient skills at the intersection of AI and Moving forward, the World Economic Forum and
operations the Centre for the Fourth Industrial Revolution
Türkiye will continue to work closely with
4. Data availability and the absence of a data stakeholders in the Centre for the Fourth Industrial
governance structure Revolution Network and across industries to
accelerate the journey to capture value from AI
5. A lack of explainable AI models in manufacturing in manufacturing globally. It will offer the Turkish
Employers’ Association of Metal Industries (MESS)
6. Significant customization efforts across Technology Centre as a unique testing and
manufacturing use case