Global research highlights how artificial intelligence is
being deployed to give the workforce superpowers and build
resiliency in operations.
DUBAI, UAE, March 26, 2024 /PRNewswire/ -- Rockwell
Automation, Inc. (NYSE: ROK), the world's largest company
dedicated to industrial automation and digital transformation,
today announced the results of the 9th annual study, "The State of
Smart Manufacturing", offering valuable insights into trends,
challenges, and plans for global manufacturers. The international
study surveyed more than 1,550 respondents from 17 countries,
including the Kingdom of Saudi
Arabia (KSA) and the United Arab
Emirates (UAE).
Three clear messages emerge from this report for companies in
KSA and UAE: the artificial intelligence (AI) revolution is here
for manufacturing, technology is being deployed to give the
workforce superpowers, and companies face challenges in
implementing new technology.
"In the region, the AI revolution is unmistakably underway,"
said Ediz Eren, regional vice
president, Middle East, Türkiye
and Africa, Rockwell Automation.
"Our survey reveals that 87% of companies have either invested or
plan to invest in artificial intelligence and machine learning
within the next year, with generative AI leading the charge at 86%.
The impact of AI is profound, with applications ranging from
quality control to cybersecurity, robotics, and supply chain
management.
"As businesses navigate this transformative landscape, driven by
the ambitious targets set by their respective governments,
addressing the skills gap emerges as a key challenge, with 46%
citing a lack of skilled workers, compared with 30% in the US. To
bridge this gap, 45% are turning to automation while also focusing
on organizational change management to overcome technology
paralysis and drive sustainable growth."
Other significant trends in KSA and UAE
- Growing into new markets and international expansion is the top
business outcome that companies in KSA and UAE are looking to
achieve with smart manufacturing technologies (41%), significantly
higher than the global average of 33%.
- Companies in KSA and UAE consider climate change to be the
single biggest obstacle to growth next year (37%), significantly
higher than 24% in the US and 20% in Europe.
- Supply chain planning (17%) had the biggest ROI, which was
higher than US (10%), and Europe
(13%).
- 75% of companies invest more than 20% of their operating budget
in technology, more than Europe
(73%) but less than the US (82%).
- Quality management systems (QMS) had the biggest impact on
workforce challenges (17%), higher than US (13%), and Europe (7%).
- AI/machine learning drives the biggest business outcomes (44%),
above both the US (39%) and Europe
(42%).
- The ability to move quickly and a lack of production capacity
(both 27%) were the top reasons for companies' inability to keep
pace with their opposition.
The AI revolution is here
According to this year's survey, AI and machine learning (ML)
are the number one area that companies in KSA and UAE have invested
in. In the 2024 survey, 87% of the companies surveyed said
they have invested or plan to invest in the next 12 months, with
86% citing generative AI. When they deploy the technology, there
are four standout applications: quality control (50%),
cybersecurity (47%), robotics (37%), and supply chain management
(36%). AI also came out top (44%) when companies were asked which
smart manufacturing technologies drive the biggest business
outcomes.
Empowering and super-charging people
In any digital transformation, people are all too often the
forgotten dimension. For companies in the KSA and UAE, they
represent a clear challenge, with a lack of skilled workers (46%)
by far the biggest barrier when it came to adopting smart
manufacturing technologies. This was well above the next two: cost
and employee's resistance to change – both at 34%. When asked what
was the biggest internal challenge to growth, workforce issues
featured prominently again, with worker/knowledge retention second
at 24%.
To address the manufacturing industry's labor shortage and
skills gap, 45% of companies in the KSA and UAE are looking to
increase the use of automation. Other significant responses were
outsourcing work to consultants (42%) and introducing AI (41%).
Overcoming technology paralysis
When it comes to the biggest internal challenges to growth over
the next 12 months, the focus was on technology. A quarter of
companies cited technology paralysis as the biggest barrier, with
challenges deploying and integrating new technology third at 24%.
To mitigate against these technology challenges, 36% of companies
in the region are looking to implement a formal organizational
change management program.
"In the KSA and UAE, smart manufacturing technologies are
rapidly reshaping industries," said Eren. "With 87% of companies
investing in AI and machine learning, the region is embracing
innovation to drive efficiency and competitiveness. Overcoming
challenges like the skills gap and technology integration, the two
countries are poised for transformative growth."
The full findings of the report can be found here.
Methodology
This report analyzed feedback from 1,567 respondents from 17 of
the top manufacturing countries with roles from management up to
the C-suite and was conducted in association with Sapio Research
and Plex Systems. The survey covered discrete, process, and hybrid
industries across a balanced distribution of company sizes with
revenues spanning $10 million to over
$10 billion, providing a wide breadth
of manufacturing business perspectives.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK) is a global leader in
industrial automation and digital transformation. We connect the
imaginations of people with the potential of technology to expand
what is humanly possible, making the world more productive and more
sustainable. Headquartered in Milwaukee,
Wisconsin, Rockwell Automation employs approximately 29,000
problem solvers dedicated to our customers in more than 100
countries. To learn more about how we are bringing the Connected
Enterprise to life across industrial enterprises,
visit www.rockwellautomation.com.
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