Input Stories

Artificial intelligence use in manufacturing is moving beyond the digital world—and companies’ success with it will depend largely on C-suite adaptation, EY Global Managing Partner for Growth & Innovation Raj Sharma writes in a recent Fortune op-ed (subscription).

What’s going on: “‘Physical AI’ represents the next frontier, transforming industries by embedding intelligence directly into the systems powering our daily lives. Examples include robots in hospitals, autonomous fleets or AI-driven factories. This new era not only unlocks a wealth of unprecedented possibilities for businesses but also comes with new complications that the C-suite needs to prepare for.”

Rules and rights: Business leaders piloting physical AI should be prepared to comply with applicable regulations, Sharma warns.

• “As leaders prepare to integrate robots into their processes, they must consider human privacy rights. Also, what do safety and security procedures look like in this new environment? And are there additional insurance requirements that need to be in place before the robots can become operational?”

True benefit: The real worth of physical AI lies in its power to help human workers, Sharma writes.

• “When leaders give their teams the knowledge and resources to understand physical AI, they enable them to collaborate directly with the technology and better execute intricate tasks.”
• This means updated training for employees is essential.

A strategic shift: Physical AI is more than the next phase of automation, according to Sharma.

• “[I]t represents a strategic shift in how companies create value. Streamlining tasks and creating efficiency through the integration of robotics and AI can bring huge benefits to businesses. Hence organizations that act now won’t just adapt to the future of work—they will define it.”

MLC: If you are interested in learning more about cutting-edge uses of AI in manufacturing, check out the resources and events of the Manufacturing Leadership Council, the NAM’s digital transformation division.