PwC Survey Reveals More Than Half of Manufacturing Firms Use AI

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India's manufacturing sector is undergoing a significant transformation in business operations because it wants to stay caught up in other sectors in the age of AI.

New opportunities for the manufacturing industry to redesign and innovate existing business models have emerged due to the shift in customer preferences, new distribution models, geopolitical uncertainties, supply chain disruption, and ESG regulations. Production-linked incentive schemes (PLI) and "Make in India" are two government programs that have helped create a favorable domestic market for the manufacturing sector.

"Organisations are focusing on improving the efficiency of processes, such as reducing the downtime of assets, minimizing the maintenance cost of expensive equipment, and automation of processes like connected workstations using IoT for better visibility at the shop floor," said Sudipta Ghosh, partner, industrial products sector and data and analytics practice leader, PwC India.

According to the PwC survey, Indian manufacturing companies would instead use a single, standardized digital solution across all of their plants than global companies, which would instead use a single, standardized digital solution with various functionalities.

"Though many companies have implemented fit-for-the-future technologies in some capacity to solve operational challenges, only a few can successfully implement it across the value chain," said Ankur Basu, partner and head of digital operations at PwC India. He went on to say that skilled individuals, a clear implementation plan, and the leadership team's commitment are all necessary for the successful adoption of digital technologies on a large scale.

In addition, the study found that digital champions from all six sectors of India's economy agreed that being resilient, transparent, and sustainable will position businesses for future expansion. On the other hand, 38% of the Indian companies that took part in the poll said they have no intentions to use digital technology like artificial intelligence.

According to the report, 21% of Indian manufacturing ring firms choose IIoT compared to 31% of global champions, and 32% of Indian champions choose PLM compared to 46% of global champions. When compared to their international counterparts, Indian champions are increasingly emphasizing low code automation.

India's rate of technology adoption is encouraging. More than half of Indian digital champions, according to the survey, have implemented technology across industries. With an adoption rate of approximately 55%, the additive manufacturing industries in India have seen the greatest adoption of technology. With an implementation score of roughly 88%, global champions primarily concentrate on AI and analytics.