Imagine this – a smartphone made as per your specifications, according to the likes of your length, colour and size, built to suit the needs of your work. Sounds like a dream phone? In less than a decade, this could be a reality for many millennials. Exploring how Artificial Intelligence (AI) could serve the services industry, industry experts gave a glimpse of the future during the India Innovation Summit in Bengaluru.
“The manufacturing sector is roughly estimated at $300 billion and our aim is to make it a $1 trillion sector by 2025. While for some unknown reasons this sector has been largely untouched by technology, the future of manufacturing sector will be driven by technology,” said Rahul Garg,CEO, Moglix.
Further, shedding light on customer expectations had changed, he observed, “Earlier, an automobile company changed the designs of its cars every four or five years, now a customer wants a new design every 15 months. That’s roughly 10,000 odd products that have to be fixed and put together and the time to do that is just 15 months. With technology, customer expectations have increased and manufacturing companies have to fall back on technology to meet this demand.”
Driving the future
In meeting the customer expectations, Garg, recalls, “Earlier, most of the manufacturing industries worked as B2B and later evolved to even B2C. However, the future lies in C2B, that is, consumer to business where the consumer will decide what the company has to make. Based on the expectations and feedback of the consumer, companies will make products. The supreme importance, however, will be on personalization as with evolving technology, more and more consumers will demand only personalized products.”
How AI will make a difference?
According to PwC, through machine learning and analytics will improve predictive maintenance and it is estimated that there will be as much as 38 per cent increase in the next five years. Also, with many manufacturers heavily investing on Internet of Things (IoT) to create new products and services, production costs over the long term will drastically reduce.
In global predictions too, it is estimated that machine learning will reduce supply chain forecasting errors by 50 per cent and reduce loss by 65 per cent with better product availability. “Supply chains are the heart of manufacturing business. Machine learning is predicted to reduce costs related to transport and warehousing and supply chain administration by 5 to 10 per cent and 25 to 40 per cent respectively. Due to machine learning, overall inventory reductions of 20 to 50 per cent are possible,” a survey predicts.
Besides, experts feel that there will be a paradigm shift towards autonomous intelligence where machines can make recommendations that are fit to follow and will be fool-proof. Moreover, with the use of AI and big data, experts feel that tech intervention can be seen in every aspect of humans starting from weather prediction to healthcare and even diagnosing different kinds of ailments.