Gartner Impact of AI Aug24EEichhorn Audience

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The Impact of Generative AI on
Manufacturing
Ellen Eichhorn
Sr Director Analyst
Our Agenda
• The difference between Machine Learning, AI, and Generative AI.

• The functional criteria when pursuing these technologies.
• The hype, hope, and reality of AI in manufacturing.
AI Definition
Artificial intelligence (AI) applies advanced analysis

and logic-based techniques, such as machine learning,
deep learning, regression analysis and prescriptive
analytics, to identify and predict patterns, self-learn,
and make and execute decisions.
AI augments human decision-making or automates

routine and nonroutine tasks.
AI Techniques
Artificial intelligence (AI) applies

advanced analysis and logic-based
techniques, such as machine
learning, deep learning, regression
analysis and prescriptive analytics, to
identify and predict patterns, self-
learn, and make and execute
decisions.
AI augments human decision-making

or automates routine and nonroutine
tasks.
AI Techniques – Machine Learning
Improving Unstructured Data Security With Classification
AI / GenAI Definitions
Artificial Intelligence (AI) Generative AI (GAI)
AI applies advanced analysis and logic- Generative AI uses foundation models that
based techniques to interpret events, learn from a representation of artifacts
support and automate decisions, and take from data and use it to generate brand-
actions. It augments human decision- new, completely original artifacts at
making ability or automates routine and scale, that preserve a likeness to original
nonroutine tasks. data.
Techniques Foundation Models
Machine Learning Text to Text
Computer Vision NLP to Code
Natural Language Language to Image
Our Agenda

Data
Resources
Structure
Roadblocks
Roadblocks
Change Management: Is your organization ready? Are your suppliers, customers, and workforce going to
embrace the opportunities GenAI can offer?
Data: up your data game – the quality of any algorithm is limited to the quality of the data it receives.
Technical Debt: The silent demon of all digitalization. Technical debt is expensive to remove with no obvious
benefit other than making way for new investments.
Governance: Is the organization prepared to monitor this throughout the life of the asset for integrity, bias,
accuracy, and security?
Risk Appetite: What are the risks of engaging GenAI? After safety, what is the worst that can happen with
your pilots? What is the best that can happen?
Designated Area of Play: GenAI is not a one size fits all any more than brands or regions. There are market
leaders, fast followers and resistant laggards. Investments should be applied accordingly.
What can I do to prepare?
FAQ: What can I do to prepare?
Leadership:GAI
Leadership:
Leadership: GAIis
GAI isaaatechnology
is technology play–––aaanew
technologyplay
play newtype
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type ofhighly
of highlyeffective
highly effectivedigital
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enabler. Getin
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it.
EstablishaaaCenter
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Center ofExcellence
of Excellence(COE)
Excellence (COE) including Security, Use Policies, Indemnity Protection, et al.
(COE),
Resources: GAI
Resources: GAI isis resource-intensive
resource-intensive (skills,
(skills, energy,
energy, and
and infrastructure).
infrastructure). Consider
Consider outsourcing
outsourcing in
in
conjunction with
conjunction with training,
training, but
but watch
watch the
the legal
legal and
and data
data protection
protection implications
implications
Workforce: Enable your organization for the right use of GAI. build skills early as GAI is complex. If not as
verification/validation
data scientists, as authors and as verification / validationexperts
experts
Position:
Position: Proceed
Proceed butbutdon't
don’tover-pivot.
over-pivot. Recognize that
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that is a
this is very early
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hype. That said,
said, the
the potential
potential is
is significant
significant.
Exploration: Focus
Exploration: Focus initial
initial efforts
efforts on
on high
high-value, low risk
value, low risk
Worker, product,
Worker, product, and
and customer
customer safety
safety must
must come
come first.
first.
Our Agenda

Generative AI In Manufacturing – Today
Generative AI In Manufacturing – Today
Workforce, Campaigns and Training – Job descriptions, advertising copy, user manual translations
Product Innovation – GenAI suggests alternatives to ingredients and packing based on user sentiment and
aggregating trends/shopping patterns.
Digital Product Interaction – New behaviors and capabilities downloaded to digital products based on the
aggregation of voice feedback.
Factory – Interaction with machines on the factory floor – Direct someone with or without technical training
to adjust a machine in their chosen language(s).
Product Servitization – Rather than waiting for a signal that maintenance is needed, continuously
diagnose, order parts, complete programmable maintenance or order parts and schedule the recommended
service needs for zero unplanned downtime.
Selection Recommendations
Model Capability Considerations
Generative AI models are large data structures that must be held in memory:
• The model size dictates the minimum system memory required.

• Inference is a computationally intensive process highly dependent on the processing performance of
the host environment (e.g., CPU and GPU performance).
• Balance the model capability requirements with the cost of hosting that model.
Selecting the right model is further complicated by the importance of prompt engineering — a simpler (and
hence cheaper) model may be able to provide a suitable output if provided with the right prompts.
20
© 2023 Gartner, Inc. and/or its affiliates. All rights reserved.
Getting Started With Generative AI in Your Application Architecture
Selection Recommendations
Model Capabilities
We recommend you assess models by:

• Classifying your problem and choosing the right model type (e.g., a chat model, a text
completion model, an image generation model, etc.)
• Defining evaluation test cases that represent the tasks you need the generative AI to
deliver as part of your integrated solution. This includes defining “ground truth” to capture
the correct or optimal output of the model in specific situations.
• Execute these tests against candidate models using multiple runs of each test
combination to expose the impact of non-deterministic output. Test cases should also
include adjusting model parameters and system prompt content for each test prompt.
21
Getting Started With Generative AI in Your Application Architecture
Gartner Identifies Major Players
Who are the major tech providers in the generative AI market?
Enterprise application providers, such as Salesforce and SAP, are building LLM capabilities into their platforms.
Organizations like Microsoft, Google, Amazon Web Services (AWS) and IBM have invested hundreds of millions of
dollars and massive compute power to build the foundational models on which services like ChatGPT and others
depend.
Gartner considers the current major players to be as follows:

•Google has two large language models, Palm, a multimodal model, and Bard, a pure language model. They are
embedding their generative AI technology into their suite of workplace applications, which will immediately get it in the
hands of millions of people.
•Microsoft and OpenAI are marching in lockstep. Like Google, Microsoft is embedding generative AI technology into its
products, but it has the first-mover advantage and buzz of ChatGPT on its side.
•Amazon has partnered with Hugging Face, which has a number of LLMs available on an open-source basis, to build
solutions. Amazon also has Bedrock, which provides access to generative AI on the cloud via AWS, and has announced
plans for Titan, a set of two AI models that create text and improve searches and personalization.
•IBM has multiple foundation models and a strong ability to fine-tune both its and third-party models by injecting data and
retraining and employing the model.
22 © 2023 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Experts Answer the Top Generative AI Questions for Your Enterprise
Use-Case Prism – GenAI for Manufacturing
Use-Case Prism: Generative AI for Manufacturing
Idea Generation for AI in Manufacturing
Process & Discrete
Manufacturing
IoT Automated After-Sale
Fraud Customer Counterfeit
Security Contract Service
Detection Case Mgmt Detection Discrete
Mgmt Review Trigger Manufacturing
Quality & Processing

Formula HVAC & Product Space
Computer Regulatory Tank
Discovery Energy Pricing Utilization
Vision Temp
Enterprise Business
Worker Scenario Packaging Digital
Asset EH&S Model
Safety Planning Simulation Products
Mgmt Transf
Product Motion Manuf.

Experience Material BOM
Dev Efficiency Design Opt Planning &
Mgmt Selection Mgmt
Engineer
Efficiency and Maintenance
WHO INDUSTRY PARTNER(S), IF ANY STATUS TECHNIQUE(S) APPLICATION(S)
Georgia-Pacific FMCG AWS In Production • Machine Learning • Anomaly Detection
• Advanced Analytics • Asset Optimization
WHAT Challenge:
(GOAL) • Tears or breaks in parent rolls lead to paper machine and converting-line downtime.
DESCRIPTION REGION(S)
• Amazon Kinesis • Stream real-time manufacturing data to a central data lake
• US
• Amazon Simple
Storage Service
BENEFITS
(Amazon S3)
• Amazon Athena • Query the raw data, which includes information on pulping mechanisms, • Increased profits in the magnitude of millions
paper machines, converting lines, vibration trends, throughput, and paper by optimizing processes
quality. • Predicts equipment failure 60-90 days in
advance, reducing unplanned downtime
• Amazon SageMaker SageMaker builds, trains, and deploys ML models at scale. • Efficient and predictable line performance,
• Query the raw data, which includes information on pulping mechanisms, better-optimizing human interactions.
paper machines, converting lines, vibration
SOURCE(S)
Provides real-time feedback to machine operators regarding optimum machine
• Georgia-Pacific Optimizes Processes, Saves Millions of
speeds and other adjustable variables, enabling less experienced operators to Dollars Yearly Using AWS
detect breaks earlier and maintain quality.
Increase Quality | Reduce Waste
Global Steel Industrial Fero Labs, Intel, Microsoft In Production • Machine Learning • Predictive Analytics
• PLC Sensor
WHAT Challenge: Adjustment
(GOAL) Reduce processing loss and improve consistency in steel production.
• Fero Labs Analytics • Reduce ‘mill scaling’, which commonly results in 3 percent of steel • Global
• Intel® Xeon® being lost.
processors BENEFITS
• Azure • Analytics utilized sensors deployed but not in use on the factory floor.
• Reduced waste by 15%, resulting in annual
savings in the millions.
• Solution allows for continuous monitoring and adjustment
throughout the manufacturing process.
SOURCE(S)
• Creating an insights-driven factory floor
• Steel producer reduces costs using AI in manufacturing
Weights & Measures
Hershey FMCG Microsoft In Production • Machine Learning • Constraint-Based
Reasoning
WHAT Challenge: • IoT • Machine-Managed
(GOAL) Reduce product give-away while ensuring weight compliance Monitoring.
• Azure • Producing licorice requires constant mixing and cooking of the • Global
ingredients. New batches are constantly added to batches already in
process with varied temperatures among the batches. BENEFITS
• Every 1% reduction toward precise weight in a
• 22 sensors /tank collect 60 million datapoints 14,000-gallon batch equals a raw material
savings of $500,000 per holding tank
• Machine self-adjusts 240x/day vs manually every 15 mins
SOURCE(S)
• How Hershey used IoT to save $500K for every 1% of
improved efficiency in making Twizzlers
Back Office Efficiency
Mondelez FMCG Genpact In Production • RPA / ML • Anomaly Detection
• Advanced Analytics • Data Integration
WHAT Challenge: • Mobility
(GOAL) • Simplify processing and accuracy of finance operations.
• BlackLine • Developed cross-organizational workflow tools.
• Global
• Nakisa Lease • Automated month-end reporting.
• Genpact Proprietary • Reduced 700 reports to 40 digital dashboards. BENEFITS
• Cost reduction of 41% in finance operations
• Genpact's partnership with Mondelēz International started in 2015.
• Positive changes in timeliness and accuracy of
SLAs
• Mondelez adopted digital products such as robotic process automation • Improved compliance
and mobility, worked with existing technology to simplify transformation
and speed up its benefits. SOURCE(S)
• The Mondelēz International recipe for fast-track
• Mondelez integrated data from all ERP and related systems for finance transformation
and accounting process metrics on a single portal. • Genpact and Mondelēz International Co-
innovate to Transform Operations for
Growth through Faster, Smarter Insights
from Finance Data
• Sweet success for Mondelēz
International's finance team
Thank you!
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Manufacturing
Focus on Business How can Digital Outcome

Outcomes and Tech manufacturing CIOs Driven Metrics for
Innovations to use intralogistics Manufacturing
Enhance Industrial smart robots?
IoT Edge
Solutions key findings and 25% of Supply Chain Business and technology
recommendations for product decisions will be made across metrics for increasing the
managers. intelligent edge ecosystems value of IT investments.
through 2025.
Get the Key Takeaways Get the Full Research Get the Key Insights
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Gartner

Ask a Download Watch

• The difference between Machine Learning, AI, and Generative AI.

Artificial intelligence (AI) applies advanced analysis

AI augments human decision-making or automates

Artificial intelligence (AI) applies

AI augments human decision-making

Improving Unstructured Data Security With Classification

Techniques Foundation Models

Machine Learning Text to Text

Computer Vision NLP to Code

Natural Language Language to Image

• The difference between Machine Learning, AI, and Generative AI.

• The difference between Machine Learning, AI, and Generative AI.

• The model size dictates the minimum system memory required.

We recommend you assess models by:

Gartner considers the current major players to be as follows:

Use-Case Prism: Generative AI for Manufacturing

Quality & Processing

Product Motion Manuf.

View the global Gartner conference

Focus on Business How can Digital Outcome

Fill out the form to connect with a representative

Or give us a call: +441784614280 | +1 855 637 0291

Download the research slides

View upcoming and on-demand Gartner webinars

Rate this session

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