Taiwan Global Frontrunner In Manufacturing AI Adoption

Survey by Profet AI explores Taiwanese supply chain manufacturing’s AI adoption, providing insights to global manufacturing about successful implementation

Manufacturers on the whole have been slow to adopt AI. According to the Manufacturing Leadership Council’s 2030 Industrial AI survey, less than a third of companies have incorporated AI initiatives into formal strategies and plans. This is despite the fact that leaders recognise AI’s potential as a cost-cutting solution, with 98% having future plans to increase investment in the technology. 

However, while AI adoption on the whole may be slow, countries like Taiwan have shown faster progress. Taiwanese manufacturing, which is responsible for 90% of the world’s most advanced semiconductors and 60% of the overall market has embraced AI like nowhere else. A new survey by Profet AI, a Taiwanese manufacturing software company that specialises in artificial intelligence, provides insight on this development and what it can teach global manufacturing. 

Conducted in late 2023, the survey asked 160 Taiwanese manufacturers from diverse production areas about their level of AI adoption, its impact on their staff and the extent they’d integrated it into daily workflows. The results highlight AI’s potential to enhance productivity, efficiency and overall results whilst challenging common misconceptions about AI adoption in the manufacturing field. 

The survey found that if manufacturers want to achieve rapid results with AI it’s essential that they empower their staff, starting with domain experts. Profet AI lays out a detailed process, whereby domain experts will receive training on AI applications through targeted workshops. Afterwards, these individuals help promote and spread AI adoption across different units, gradually empowering the entire workforce.

By allowing domain experts to integrate their knowledge into AI models, these workers were freed up to concentrate instead on problem-solving and innovation. On average there were 26 verified AI use cases and 312 models implemented per organisation, the majority by domain experts who lacked comprehensive experience with AI algorithms.

This challenges a belief about AI that’s all too prevalent in the manufacturing space- that the technology is overcomplicated and inaccessible for non-experts. The survey also challenges another idea about AI, that all variations exist to undercut the existing labour of the workforce. 80% of the manufacturing employees surveyed reported feeling ‘empowered’ by AI at work, with its capacity to assist their day-to-day work

Major findings for AI in Taiwanese supply chain manufacturing
  • 76.2% of surveyed manufacturing companies in Taiwan have successfully implemented at least one AI case in the last year, a figure that surpasses the global average of 68%.
  • 80% of employees in Taiwan's manufacturing organisations have reported that AI has benefited their work.
  • 30% increase in maintenance operation revenue 40% YoY growth in equipment orders and optimised service efficiency
  • 83% was the percentage of domain experts that recognize AI's current and future benefits in their workflow
  • 71% was the percentage of domain experts with clear goals planning to invest in data automation, integration, and AI model management over the next 3 years

AI is an opportunity and obstacle for supply chain manufacturing. Driven by existing investment in advanced technologies and forward-thinking companies, Taiwanese manufacturing is at the forefront of AI deployment. Successful AI adoption comes with the right organisational mindset, where attention is paid to effectively training and upskilling key staff. 

Profet based on this survey has identified key three takeaways that global manufacturing can learn from when it comes to successful AI deployment. One is that manufacturers need to drive AI adoption through domain experts, giving them the power and tools to upskill and spread knowledge to other staff. Another is that manufacturers' mindset surrounding AI is critical, that creating AI-centric cultures is key to success.

"In our experience, the top companies in AI adoption in Taiwan are those who lay the crucial groundwork to nurture an AI-centric culture," states Jerry Huang, CEO of Profet AI. "Due to the intense competitiveness of Taiwan's ODM model, we have some of the global leaders in AI adoption and digital transformation, setting the standard for the rest of the country."

Profet AI’s solutions, which include their AUTOML platform have been utilised to great effect by major manufacturers. These include BenQ Materials who have seen improvement in yields and efficiency and a 85% reduction in system costs by using AI, and Asia Giant Engineering, who drove up recruitment, efficiency and revenue through AI integration.

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