The global economy has faced numerous challenges in recent years, including the impact of COVID-19, inflation, natural disasters, and war. These events, coupled with the surge in consumer demand, labor shortages, and supply chain issues, have presented ongoing challenges for manufacturing enterprises in 2023. Shilpa Prasad, the director of new ventures at LG, discussed these challenges during a session at the Transform 2023 event this week. Prasad emphasized the importance of leveraging new technologies to transform the way we work and overcome these obstacles.
LG Electronics, a $70 billion manufacturing giant with 128 factories and 85,000 employees worldwide, has already incorporated robotics and automation into its manufacturing processes. However, the company is now exploring how artificial intelligence (AI) can further enhance its operations. Prasad highlighted the need to prioritize both products and processes in these factories, while also placing a strong emphasis on the workforce and the hiring process. The integration of generative AI is seen as a potential solution to address these challenges and revolutionize the manufacturing industry.
The Role of AI in Manufacturing
In 2017, LG Electronics introduced the Q platform, which utilizes computer vision and AI to detect product defects. This technology has helped the company meet its production goals and improve efficiency at its factory in Clarksville, Tennessee. Automation and robotics have already proven to be invaluable assets on the assembly line, and LG continues to leverage AI to enhance its operations and optimize decision-making processes at every step.
LG recognizes the importance of collaboration with all stakeholders, including startups, investors, and large corporate partners. The goal is not to confine AI expertise to a server but to utilize it wherever it is needed. Prasad emphasized the company’s commitment to exploring new technologies and their applications, not only within manufacturing but also on the factory floor. From sustainability to worker assistance, product design, and factory analytics, there are limitless possibilities for implementing generative AI.
Adapting to the Workforce of the Future
The aging workforce presents a significant challenge for the manufacturing industry. According to the U.S. Bureau of Labor Statistics, 10,000 people reach the age of 65 every day, with all baby boomers expected to reach this age by 2030. This impending retirement wave will create a significant gap in the workforce, particularly on the factory floor. To address this challenge, LG recognizes the need to embrace new technologies that can assist in bridging this gap and ensure a smooth transition for the new generation of workers.
Prasad stressed the importance of combining exponential technologies like generative AI with augmented reality, virtual reality, and mixed reality to create more intuitive training programs. The new generation of workers, often referred to as GenZers, expects technology to assist in filling the skills gap rather than relying on conventional methods. The pace of change in the industry and technology is accelerating exponentially, requiring workers to adapt and switch their skill sets more rapidly than ever before.
The Path Forward: Collaboration and Consideration
Manufacturing companies must acknowledge that the industry of the past, where individuals used a single set of skills until retirement, is no longer viable. The role of technology, AI, and retraining the workforce must be considered to ensure continued success. Governments and companies of all sizes must work together to address the challenges that lie ahead, acknowledging that there will be both opportunities and consequences associated with these changes.
Prasad highlighted the desire of factory workers to spend more time with their families and pursue activities they enjoy. Engaging with enterprises to shape the future of manufacturing is a shared priority. However, this transformation will be a long-term process that requires ongoing collaboration and commitment from all stakeholders.
Looking ahead, Prasad sees generative AI playing a crucial role in data transfer between machines and humans, as well as in enhancing cybersecurity measures in factories. However, she also acknowledges the trade-off between open access to data and the need for robust cybersecurity and privacy protection. This ongoing issue will continue to gain importance as technology advances and further emphasizes the need for careful consideration and proactive action.
The future of manufacturing lies in embracing technology, leveraging AI, and adapting to the changing workforce. By harnessing the power of generative AI and collaborating with stakeholders, manufacturing enterprises can navigate the challenges of the global economy and revolutionize the industry for years to come.
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