Use cases of Artificial Intelligence in Manufacturing industry

June 21, 2022

Manufacturers can now increase throughput, and speed research and development, thanks to AI and Machine Learning. According to a recent poll, 60% of manufacturers are adopting AI to enhance product quality, increase supply chain speed and visibility, and optimize inventory management. 

Many internal obstacles in the manufacturing industry have been overcome by AI, ranging from a lack of experience to decision-making complexity, integration concerns, and information overload. Businesses may fundamentally revolutionize their processes by implementing AI in their manufacturing plants. 

Let's look at how AI is assisting organizations in the manufacturing industry to achieve their business goals.

Why is artificial intelligence crucial in the manufacturing industry?

Manufacturing generates a lot of analytical data that machines and AI algorithms can easily process. This data contains a lot of variables as hundreds of factors influence the manufacturing process, and while humans find it difficult to examine them, Artificial Intelligence models can accurately forecast the impact of individual variables in such complicated circumstances. 

Artificial intelligence is crucial in the manufacturing industry as it improves the preservation and quality of the goods/products manufactured.  

Below are the few basic requirements of the manufacturing industry which show why there is a high need for AI models to increase the efficiency:


  • In the industry revenue volatility is high. 
  • Continuous cost-cutting efforts are to be made.
  • Production schedules are short.
  • A regular need for inspections and regulations.
  • High flexibility, and
  • Efficient manufacturing capacity and supply chain systems are needed.

What are the advantages of artificial intelligence in manufacturing?

Added benefits of using AI in the manufacturing industry include making data-driven quick choices, fast improved manufacturing results, improved process efficiency, reduced operational costs, more scalability, and easier product development. Furthermore, because AI is strong at interpreting and translating natural language, it will be easier for workers and managers to interact with software. Users of software, for example, generally prefer to search for items rather than browse a lengthy menu. AI allows the software to understand the user's intentions, making the system more spontaneous, resulting in better output and fewer mistakes.

Some of the most prevalent use cases of AI in the manufacturing industry-

  1. Management of Inventory: Inventory management inefficiency can result in considerable cost overruns for a manufacturing organization. Traditional demand forecasting methods (ARIMA, exponential smoothing, etc.) used by engineers in manufacturing facilities produce less accurate findings than AI-powered demand forecasting systems. Manufacturers may maintain their order records and add/delete new inventory using AI technologies. In order to manage stocks based on demand and supply, AI is crucial. AI & ML systems that are strong at demand forecasting and supply planning might help enhance inventory planning operations. These technologies help firms better manage inventory levels, reducing the likelihood of cash-in-stock and out-of-stock events.

  1. Predictive Maintenance: A single equipment failure may dramatically affect the entire production process, resulting in increased downtime and expenses. As a result, thorough and timely machinery maintenance is critical. Unfortunately, this is frequently neglected until a severe failure occurs. By analyzing sensor data, manufacturers use AI technology to predict possible downtime and accidents. Manufacturers can use AI systems to predict when or whether functioning equipment will break, allowing maintenance and repair to be arranged ahead of time. Manufacturers can increase productivity while lowering the cost of equipment failure thanks to AI-powered predictive maintenance.

  1. Designing: In addition to easing the maintenance using predictive analytics, AI may assist companies to create and design products/items. Here's how it works: generative design algorithms are fed design goals by a designer or engineer and these algorithms then generate design to emulate an engineer's approach to design. Designers or engineers enter design criteria into generative design software (such as materials, size, weight, strength, production processes, and cost limits), and the software generates all conceivable outcomes based on those factors, and produces design alternatives by exploring all conceivable variations of a solution. Finally, machine learning is used to test and enhance each iteration. Manufacturers may swiftly produce hundreds of design choices for a single product using this technology.

  1. Robotics: Industrial robots, often known as manufacturing robots, automate repetitive operations, reducing or eliminating human error, and allowing humans to focus on more productive aspects of the operation. There are many applications of robots in a manufacturing plant. Assembly, welding, painting, product inspection, picking and putting, die casting, drilling, glass manufacturing, and grinding are some of the applications. Another robotics use is cobots, which employ machine vision to operate securely alongside human workers to do tasks that cannot be entirely mechanized. 

  1. Assembly line integration and optimization: Many pieces of manufacturing equipment now send massive amounts of data to the cloud. Unfortunately, this data is often compartmentalized and does not interact well. Obtaining a comprehensive view of your organization necessitates the use of many dashboards and the assistance of a subject matter expert. You may assure that you're receiving a God-like vision of the business by designing an integrated app that draws data from the breadth of the IoT-connected devices you utilize.

Furthermore, by incorporating Artificial Intelligence into your IoT environment, you may automate a range of processes. Supervisors, for example, are notified when equipment operators exhibit indications of weariness. When a piece of equipment fails, the system can initiate contingency planning or other rearrangement actions automatically.

Artificial Intelligence's Future in Manufacturing Industries

It is quite likely that the Manufacturing Industry will see an empowering development with the application of AI, provided organizations can maintain inventories lean and minimize costs. 

Detecting flaws in the manufacturing process, reducing downtime by implementing predictive maintenance, Responding to changes in demand real time across the supply chain, examining whether delicates such as microchips were manufactured flawlessly, reducing the cost of single-run or small-batch items, allowing for more personalization, shifting monotonous duties to automation to improve employee happiness - are the advantages that AI will offer to the manufacturing industry in the coming future. 

Having said that, the manufacturing industry must prepare for well-organized manufacturing facilities in which the supply chain, design team, production line, and quality control are all tightly integrated into an intelligent engine that generates valuable knowledge insights.


As you can see, artificial intelligence is becoming a part of commercial solutions across the manufacturing industry's whole value chain. These AI solutions provide firms with immediate chances to deploy and execute on top and bottom-line goals, as well as lead them towards more sophisticated use cases in the future.

Combining AI/ML with other technologies like sensors, robots, and human inputs would enhance operations considerably and lead to new kinds of innovation and productivity in the business. While your business may lack the requisite skill sets, don't allow that to stop you from investing in commercial AI/ML solutions to get you started.

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