ARTIFICIAL INTELLIGENCE (AI) is considered a priority item by industrial companies, Bain & Co. said, citing the results of a study, though companies worry about unpreparedness to deploy the technology and lack of resources.
“More than half the leaders of industrial companies we surveyed say that AI is a top three priority, but many companies lack the vision, resources and data to capitalize on it,” Bain said in a statement on Wednesday.
Bain views AI use in “supply chain planning, procurement enhancements, manufacturing optimization, and engineering augmentation” to be “emerging AI opportunities.”
By utilizing AI in the supply chain, Bain said companies could gain a 15%-20% productivity boost and improve forecast accuracy.
In procurement, a 5% to 7% increase in sourcing savings can be expected, it said, along with higher compliance at 2% to 10%. Maintenance expenses can also be lowered by 10% with a 5% to 10% yield improvement.
In addition, a 50% to 80% increase in productivity and 20% to 25% costs savings in engineering can be achieved with the help of AI, Bain said.
Separately, 96% of Philippine organizations surveyed by Cisco, said they have a ‘highly defined’ AI strategy in place or are in the process of developing one.
“Nothing can be deployed effectively in an organization without a clear strategy, and the same is true for AI,” Cisco said in its 2024 AI Readiness Index report.
However, the technology company noted that organizations’ AI readiness in multiple areas, such as talent and data, across the Asia-Pacific, Japan, and Greater China region declined this year.
“This means that despite the focus and investment, business leaders do not feel they have made enough progress towards their AI ambitions,” Cisco said.
In terms of adapting, deploying, and fully leveraging AI, 44% of respondents in the Philippines reported ‘high readiness,’ it added.
Further, the talent readiness of organizations in the country fell to 30% from 32% last year.
“The challenge for most organizations may lie in the lack of knowledge and skill to ensure compliance with the policies and protocols in place,” Cisco said. — Almira Louise S. Martinez
