· By Joaquín Paz ·
It seems unnecessary to say in our world today, but ultimately, it bears repeating — the future of every industry will involve artificial intelligence (AI) of some kind. While AI was once simply a far-fetched fantastical dream and the center of apocalyptic science-fiction films, it has now worked its way to the forefront of our world.
At MANA, we’re passionate about assisting companies across an array of industries as they look to implement the benefits of AI while overcoming the problems associated with adopting new technology.
One such industry that must quickly adopt AI or be left behind is the automotive industry. Let’s dive into the technology itself, the challenges the automotive world will face in adoption, the beneficial solutions offered by AI, and, ultimately, the impact this adoption will have on revenue and how it will involve a reskilling of the workforce.
What is Artificial Intelligence?
Artificial intelligence, in its most basic sense, is the use of computers and technology to tackle tasks once reserved for the human intellect. From decision making to visual perception, AI is capable of taking in massive amounts of data, analyzing this data, and learning as it goes.
The fact that AI implements algorithmic learning is one of the many reasons it has often been met with skepticism and a wary look toward the future. This continual ability to adapt is, however, also what makes AI an incredible asset in the automotive industry.
The Challenges the Automotive Industry Faces with AI
While AI is making its way to the forefront of the automotive industry, it doesn’t come without its own set of challenges. Of companies surveyed for a study conducted by the World Economic Forum (WEF), the following are the top barriers holding companies back from adopting new technologies, including AI:
· Skill gaps in the local labor market
· A lack of understanding of the opportunities available
· Skill gaps in leadership
· Shortage of investment capital
· Lack of flexibility in hiring and firing
While these obstacles are, undoubtedly, hurdles to overcome, the reality is that innovation is a necessity, not an option.
The Solutions AI Provides to the Automotive Industry
In regard to the automotive industry, AI has often been solely associated with self-driving cars and fancy computerized interiors. However, AI plays a much larger role in the automotive industry than that. From prototyping to quality control to monitoring sales and marketing with advanced AI algorithms, the automotive industry can benefit heavily from the implementation of this technology.
For example, while the human eye can detect only a limited number of potential quality control issues on an assembly line before becoming fatigued, AI can monitor every single detail with impeccable accuracy. In addition, as AI collects data from this quality control task, it will become smarter, allowing for predictive analysis of the entire process.
The Impact of AI on Revenue and Reskilling
While the incredible ability of AI to learn, adapt, and predict through data analysis can leave one imagining a world run by robots, the reality is that AI must be paired with a highly skilled workforce. People and AI work hand in hand to accomplish increased revenue and growth across any sector.
For this reason, the reskilling of the workforce is a must. In the same WEF study cited above, it is estimated that the average timeframe required for reskilling the workforce is anywhere between several weeks and more than one year. This same study points out the decline in positions such as assembly and factory workers, data entry clerks, and transportation attendants and conductors. The job market is already shifting toward roles that will accommodate the use of AI, such as data analysts and scientists, machine learning specialists, and process automation specialists.
The good news is that a shift toward reskilling the workforce and adopting AI will lead to improved sales, revenue, and growth for the automotive industry. With smarter technologies that can assist in better sales tactics, decreased quality issues, and a host of other benefits for both consumers and manufacturers, the future is today.
Interested in learning more about how your company can adapt to AI and overcome the barriers, such as workforce reskilling? Our team is here to help you find world-class solutions as you embrace innovation.
Joaquín Paz, MBA
Co-Founder at MANA, Innovation Consultants