WEF & BC: How To Develop a Strategy for Agentic AI

'Frontier Technologies in Industrial Operations: The Rise of Artificial Intelligence Agents' was released by the World Economic Forum in collaboration with the Boston Consulting Group on the 21st of January 2025.

The whitepaper covers the growth of 'frontier technologies', Industry 4.0 innovations that are driving profound change in manufacturing.

Amongst the rapid pace of this change, the whitepaper stops to answer a critical questions for manufacturers. 

That question? why they should adopt frontier technologies and do it now.

"It’s important to address two pressing questions – why focus on frontier technologies, and why now?," says Kiva Allgood Head, Centre for Advanced Manufacturing and Supply Chains; Member, Executive Committee, World Economic Forum.

"The answer is simple yet profound – these innovations, like others in the Intelligent Age, drive boundary-breaking advancements that push the limits of what’s currently possible, facilitating collaborative intelligence and amplifying human ingenuity. In doing so, they provide competitive advantages and catalyse sustainable growth.

"Manufacturers that fail to fully harness the transformative power of frontier technologies in operations and supply chains will surely fall behind."

To demonstrate this, the whitepaper focuses on one frontier technology in particular: agentic AI, arguing it will drive sector-wide transformation.

AI-enabled manufacturing as the future

The whitepaper expresses a belief that industrial operations on the whole are are likely to evolve to an AI-centric model where humans primarily orchestrate and oversee the labour of autonomous technologies and systems.

This evolution will be down to myriad factors, including increased labour costs and the workforce shortages due to the existing skills gap. 

There is also the growing imperative of sustainability, with AI a vital tool to improve energy efficiency and waste reduction to meet decarbonisation goals.

We're also seeing growing demand for customisation from consumers, that AI can help manufacturers address.

In addition to this manufacturers will increasingly adopt AI to better navigate geopolitical disruption and streamline fragmented supply chains.

To do this the whitepaper argues they need a nuanced understanding of AI's value and have critical strategies in place to implement and scale it.

In understanding this value, manufacturers must be familiar with the two types of agentic AI likely to have the biggest impact on operations.

Virtual AI agents and embodied AI agents 

Agentic AI is a subset of artificial intelligence capable of adapting, learning and making decisions without constant human supervision. 

There are many different subsets of agentic AI designed to enhance digital applications and physical systems.

Functioning in a continuous cycle of observation, planning and acting, these agents collect data from a multitude of industrial sources, reason and evaluate using sophisticated modules and then execute decisions. 

The whitepaper highlights two as driving profound change in manufacturing: virtual AI agents and embodied AI agents.

• Virtual AI agents

This is AI that enables software applications to autonomously reach specific goals in digital environments.

This AI typically takes the form of assistants, advisors or automation agents and can be used to independently direct processes and machinery in factory environments. 

• Embodied AI agents

This is AI that equips physical systems such as industrial robots with the ability to perceive and act within physical environments.

By allowing for dynamic and complex movements, this AI will help overcome the existing limitations of robot automation.

The adoption and integration of these agents, like with other Industry 4.0 technologies is a journey. 

A journey which the whitepaper emphasises is both complex and high stakes. 

"Although the pursuit of frontier technologies is not novel, the stakes are now higher than ever," argues Daniel Küpper Managing Director and Senior Partner, Boston Consulting Group (BCG).

"The challenges associated with identifying and evaluating these technologies and integrating them into long-term strategies have grown more complex as the pace of innovation accelerates. 

"Forward-thinking industries, technology leaders and academic institutions are pioneering such advancements. 

"Yet, even with the growing accessibility of tools like generative AI, manufacturers still face a crucial question – how will frontier technologies drive real, measurable impact in day-to-day operations?"

Determining if frontier technologies will drive real, measurable value comes down to determining which innovations will be long-lasting and which are transient trends. 

Accomplishing this is vital to determine where to focus investments and development efforts, maintaining future competitiveness amongst a landscape of relentless change.

This is no easy task. 

While there are broader issues like the ones above that are felt across the industry, each manufacturer has unique challenges and technological needs.

These come down to each company's industry vertical, technological maturity, OT/IT configuration and operational/ supply chain layout.

Cosmetics manufacturer Lush is a prime example of this. The wide-spread adoption of autonomous and AI technologies doesn't make sense for its brand, workers, bottom line or overall operations.

To determine what does make sense, the whitepaper argues manufacturers must answer four key questions: 

• What will the future of industrial operations look like?
• Where is the real value in this transformation?
• Which frontier technologies will address key challenges?
• What steps need to be taken to realise value at scale?

Answering these questions will provide the backbone of a transformation strategy that the whitepaper outlines in further detail. 

What transformation strategies should look like

After providing a host of case studies that highlight agentic AI's value, the whitepaper gives actionable advice on developing a successful strategy for AI integration.

It argues manufacturers must firstly adopt a value-driven approach, where technologies implementation aligns with business objectives and provides measurable ROI.

This ensures this companies aren't simply chasing transient trends and are instead utilising AI in ways and areas that provide tailored benefits.

Secondly, the whitepaper advises manufacturers to pursue IT and OT convergence, advanced computing infrastructure and connectivity enables such as 5G to create a robust foundation for technological transformation. 

To adopt AI holistically and ensure its positive impact is felt across operations, this broader integration and connectivity is vital. 

Thirdly the whitepaper asserts manufacturers must develop organisational readiness. 

Investment in upskilling employees and creating an AI-driven culture is a necessity to ensure successful governance and compliance.

It is absolutely critical that employees are included in this transition.

The value of AI technologies to enhance operations and their working experience must be communicated and they must be given the knowledge and tools to effectively orchestrate and oversee them. 

As the future of near-autonomous factories lies on the horizon, this whitepaper advices critical advice to manufacturers on successful transformation. 

Explore the latest edition of Manufacturing Digital and be part of the conversation at our global conference series, Manufacturing LIVE.

Sign up to our weekly newsletter here.

Discover all our upcoming events and secure your tickets today.

Manufacturing Digital is a BizClik brand.