How AI can help Asian countries double their GDP growth by 2035
Growing adoption of AI and Industrial 4.0 technologies is creating an opportunity for Asian nations to double and even triple their GDP growth rates, says Humera Malik, CEO of Canvass Analytics.
It has been projected that Asia Pacific will be the world’s fastest growing region to adopt Industrial 4.0 technologies[i], based on the large-scale industrialization in Asian markets, such as China, India and Japan. This development will be further accelerated by the market’s manufacturing hubs that are increasing their adoption of advanced technologies, such as Artificial Intelligence and predictive analytics, at increasingly speed. The result is an exciting opportunity for Asian markets who are grappling with slowing GDP growth, with estimates from Accenture stating that investment in AI can help developed economies, such as Singapore double their economic growth rate[ii] and in Japan’s case, triple its economic rate, by 2035[iii].
Manufacturing’s high reliance on machinery and its legacy-driven operations environment, whereby teams rely on operator experience to guide their decision making, makes it a prime candidate to derive high return on investments when they invest in AI and predictive analytics.
AI and its self-learning capabilities can be especially valuable for industries like automotive manufacturing, which have as many as 300 processes involving human operators and robots working together to create a product for their clients.
Without AI, a human operator will set the different parameters for the process and output based on their experience, but any errors are only found afterward. The cost of discovering these errors after the fact is high - a higher rate of scrap is produced, which can result in the manufacturer not fulfilling a customer’s order in time, while also increasing their own production costs.
AI brings intelligence into automation – enabling industrial companies to not only be more efficient but also allow operators and machines to work smarter. A lot smarter. Accenture estimates that workforce productivity will increase by up to 40 percent by 2035. This will be achieved not by longer hours but by the innovative technologies enabling people to be more efficient with their time. Industrial processes are complex by their very nature and are difficult for the ‘naked eye’ to easily identify opportunities for improvement. AI enables industrial operators and engineers to dive deeper into their operations floor and identify opportunities to not only optimize individual machines but automate the entire manufacturing line.
If we go back to the automotive example above, in an AI-powered environment, the operating parameters will be controlled by AI and anytime the parameters fall outside of the specifications, the AI-powered systems will not just notify but eventually control them before it impacts the quality of the product. This all is made possible by an AI-powered analytics systems’, like Canvass Analytics, ability to dive deeper into the data that would otherwise take weeks or months to manually analyze the millions of data points that are generated on today’s operations floors. By being able to monitor the quality of production throughout the process, AI-powered environments are producing better quality output, resulting in less scrap, lower operating costs and freeing up operators to focus on driving further value from these processes and making data driven strategic decisions.
With AI-powered predictive analytics, industrial companies are empowered to challenge their assumptions of how their operations run, drive innovation and increase their global competitiveness.