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:
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:
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:
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.