How AI is Transforming the Steel Industry

Artificial intelligence (AI) is increasingly being adopted across different industries, as organizations look to harness its potential to drive efficiencies, improve decision-making and remain competitive. The steel industry is no different – in fact, it is one of the most important early adopters of AI. This is unsurprising given the nature of the industry, which is complex, data-heavy, and reliant on a large workforce.

As steel manufacturers strive to optimize operations, improve safety and reduce costs, they’re turning to AI, as it presents a significant opportunity to improve operations. In this blog, we’ll explore important ways in which AI is being used in the steel industry and the potential benefits that it can bring.

How AI can help unlock the full potential of the steel industry

Forward-thinking companies are already using AI to gain a competitive edge, and it is expected that AI will play an increasingly important role in the steel industry in the years to come. Recent advancements in AI are providing new opportunities for the steel industry to increase efficiency and optimize operations. From identifying and classifying defects, to predictive maintenance and quality control, AI is helping steel companies improve product quality while reducing costs. Key areas include:

• Smart sensors that are used to collect data about every aspect of the steel-making process, from raw materials to finished product. This data is then analyzed by AI algorithms to identify patterns and trends that can be used to improve efficiency and quality.
• Operations and maintenance tasks are often time-consuming and expensive, but AI can help reduce these costs by unveiling previously hidden trends and relationships that improve predictive maintenance and equipment diagnoses.
• Quality control is another area where AI can make a big difference. By analyzing huge amounts of data collected by sensors around the plant, AI algorithms can identify potential issues early on and provide recommendations for how to resolve them.

The benefits of AI for the steel industry

The global steel industry is under pressure. Increasing costs, competition from low-cost countries, overcapacity and geopolitical concerns have led to consolidation and the need for more efficient production. Steelmakers are turning to artificial intelligence (AI) to help them reduce costs, improve quality, and better manage their businesses.

AI can help steelmakers in several ways, including:

• Reducing raw material costs: AI can help steelmakers optimize their raw material mix to reduce costs.
• Improving quality: AI can be used to monitor production processes and detect defects early, before they become a problem.
• Managing assets: AI can help steelmakers better understand and manage their assets, including inventory, production equipment, and logistics.
• Increasing operational efficiency: AI can be used to streamline production processes and reduce waste.
• Improving customer service: AI can be used to provide better customer service by understanding customer needs and preferences.

In fact, in a recent study by Boston Consulting Group that included steel companies in two key global markets, it was found that by connecting assets through data and by generating insights to change processing instructions and raw material input mixes, companies could achieve significant results. They were able to:

• Reduce raw material input costs by more than 5%
• Improve throughput at bottlenecks by more than 6%
• Increase end-to-end product yields by more than 15%

How AI is used to make the steel industry more sustainable

As one of the most essential industries in the world, the steel industry is responsible for producing the materials that are used in everything from bridges to buildings to cars. The steel industry is also one of the most polluting industries in the world. The World Steel Association estimates that it is responsible for around 7% of global greenhouse gas emissions.

There are several ways in which AI can help to make the steel industry more sustainable and contribute to the circular economy. For example, it can be used to develop new methods of recycling steel waste. It can also be used to develop new methods of producing steel that emits less carbon dioxide. Additionally, AI can be used to manage quality during the production process so that less scrap is produced and rework required.

The future of the steel industry with AI

In recent years, the steel industry has been struggling to compete with cheaper overseas producers, but with AI, the steel industry doesn’t only survive, it thrives.
AI holds great promise for the future of the steel industry. With its help, the steel industry can become more efficient, more innovative, and more competitive. To learn more about AI’s role in steel manufacturing, download our paper, How AI Unlocks the Steel Industry’s Full Potential.