Although Australian manufacturers are keen to join the Fourth Industrial Revolution through technologies such as machine learning and artificial intelligence (AI), a new report suggests just one in ten are embracing automation, raising questions over how ready organisations are to actually implement the next phase of digital transformation. By Jeff Nygaard, Executive Vice-President, Global Operations at Seagate Technology.
Last year the Federal Government initiated an Industry 4.0 Taskforce in co-operation with Germany to develop global standards, support manufacturers, examine security of networked systems, and help the transition though education and training. A timely step, since that same report estimated that, if Australia boosted the pace of its efforts around automation, the country could boost productivity and national income to the tune of up to $2.2 trillion by 2030.
According to APAC research sponsored by Seagate – Data Pulse: Maximising the Potential of Artificial Intelligence, the majority (88%) of organisations in Australia believe they need to implement AI to stay relevant in the near future, with 86% planning to adopt more AI solutions in the next 12 months. However, more than half still face hurdles when it comes to understanding and applying AI within their business, with 63% reporting that their organisations are unsure of where to start. They are aware more needs to be done to maximise the potential AI brings, with a staggering 92% agreeing that more investments should be made to understand the value of AI.
Perhaps that is why Australian businesses appear to have a healthy scepticism or wariness about the potential impact or benefits of AI. The Data Pulse study reported that 12% of respondents don’t think their organisations need to adopt AI (compared with 7% APAC-wide), and 11% don’t think it will drive productivity (vs 4% in APAC). The results place Australian respondents at odds with the general regional view. On the upside, it also places those manufacturing organisations who explore and embrace AI and automation in the box seat for operational success.
There are many steps in the journey to AI deployment, and the Data Pulse study identified several that were considered most important, particularly for manufacturers. These include:
- Improving IT infrastructure. Across APAC, one in five organisations believe they are not ready to handle the increasing data streams with their current IT infrastructure. In Seagate’s experience you need robust infrastructure with hardware and software platforms able to help you gather and manage the huge amounts of data that come from automation.
- Addressing security concerns. Data security is high on the infrastructure priorities list, with 94% agreeing it is critical for AI.
- Boosting data management capabilities. An increase in AI implementations requires robust data storage solutions, according to 95% of APAC respondents. 81% of Australian organisations have already consciously invested in data storage to ensure readiness for AI.
So how to move forward? There are three main areas to address.
Firstly, when exploring where and how to get on board with an AI-enhanced future, dedicate time and effort to understanding how it will benefit your business. Explore all the possibilities – from Internet of Things (IoT) to machine learning and general applications – and build a knowledge base of the opportunities for your organisation. With knowledge comes power, putting you in a position to build a clear strategy and direction with an economically prudent approach to embracing AI’s potential.
Secondly you need to dedicate resources and investment to build an IT infrastructure that will support your AI endeavours. The Data Pulse study found that in Australia, the majority of the organisations (75%) invest moderate-to-large portion of man-hours and budget to AI. However, close to 20% of respondents believe it is not enough. Without strong foundations, your best efforts will go nowhere.
The final critical area is securing the leadership team’s commitment to your AI journey. Success will require involvement of many different areas of your business and it’s important that you have all on board with you.
The road to AI may look challenging, but the opportunity for success for Australian manufacturers is strong. Take the first steps early and the future could be yours.