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Overview of AI and Automation in Manufacturing

Artificial Intelligence (AI) is set to revolutionize the manufacturing sector in the coming years. According to a recent study by Redwood Software, titled "Manufacturing AI and Automation Outlook 2026," a staggering 98% of manufacturers are currently exploring or planning to incorporate AI-driven automation into their operations. However, despite this high interest, only 20% of these manufacturers feel they are fully equipped to implement these technologies on a large scale.

Key Findings from the Study

The findings of this study underscore a significant readiness gap in the industry:

• - Limited Automation: Approximately 70% of manufacturers have automated 50% or less of their primary operations.
• - Unplanned Downtime Reduction: Around 60% of respondents reported that automation has helped reduce unplanned downtime by at least 26%.
• - Challenges with Exception Management: Only 40% have automated the management of exceptions, despite it being recognized as one of the most disruptive processes in manufacturing.
• - Limited Data Transfer Automation: 78% of manufacturers have automated less than half of their critical data transfers, which hampers real-time decision-making capabilities.
• - Inventory Management Issues: Even though automation offers time savings and productivity boosts, improving stock rotation remains a daunting task, highlighting the limitations of siloed execution.

Interestingly, customers of Redwood Software boast 2.7 times higher chances of achieving a medium to high level of automation maturity.

The Automation Maturity Plateau

The report emphasizes that many manufacturers are stuck at a state of 'semi-maturity' in their automation journey. This indicates that while investments have been made in operational technology (OT), engineering technology (ET), and IT, the execution often remains disjointed due to a lack of integration across workflows and data streams.

Barriers to Successful AI Implementation

Several barriers hinder the effective implementation of AI in manufacturing:

• - Siloed Systems: Automation tends to stop at the boundaries of systems, leading to fragmented workflows and disconnected data transfers.
• - Manual Data Transfers: The reliance on manual data managing processes and inefficiencies in script-based automation further impede AI's real-time performance.
• - Disconnected ERP and MES Systems: Gaps in coordination between Enterprise Resource Planning (ERP) systems and Manufacturing Execution Systems (MES) also present significant hurdles.

To overcome these challenges, manufacturers must focus on orchestrating workflows, synchronizing data streams, and refining exception management processes across systems. Doing so will position them favorably to transcend the plateau of semi-maturity and gear up for AI-driven operations.

The Path Forward

As stated by Kevin Greene, CEO of Redwood Software, manufacturers are not failing at automation; rather, they are facing limits imposed by siloed execution. Despite possessing robust automation capabilities, many still operate within fragmented workflows, hindered by challenges such as unmanaged exceptions and delayed data flows. Greene highlights that even the most advanced AI models cannot adapt to inefficient execution pipelines.

Orchestration as a Catalyst for Growth

Redwood's orchestrated automation platform, including tools like RunMyJobs, integrates these fragmented aspects into a cohesive automation framework. This approach enables manufacturers to evolve their automation and AI capabilities, laying the groundwork for autonomous operations.

The study concludes that effective orchestration is key to enhancing production efficiency without compromising quality. The complete report is available for download, offering comprehensive insights into automation maturity, AI readiness, operational bottlenecks, and the gaps in perception between leadership and frontline teams.

About Redwood Software

With over 30 years of expertise, Redwood Software is a premier orchestration platform that drives business transformation at the lowest total cost of ownership. Trusted by over 50% of Fortune 50 companies, Redwood's solutions automate and intelligently orchestrate critical business and IT processes across complex ERP environments, hybrid clouds, and emerging AI systems. To learn more, visit www.redwood.com and follow them on LinkedIn, @Redwood Software.