AI and automation: How manufacturing is winning

In an era where disruption is the new normal, the manufacturing industry is leveraging AI and automation not just to survive, but to thrive. This was the central theme that emerged from the UiPath AI Summit 2024's manufacturing breakout session, featuring Irmak Berberoglu, Head of Process Digitalization at Arçelik, one of the world's top three household appliances manufacturers.

Navigating disruption through innovation: the manufacturing imperative

The manufacturing sector faces a multitude of challenges, from sustainability and smart factory initiatives to global supply chain disruptions and evolving customer expectations. Sebastian Seuter, Senior Industry Practice Lead at UiPath, set the stage by highlighting these trends and emphasizing the transformative potential of AI and automation in addressing them.

AI's impact on manufacturing: beyond efficiency

Recent studies underscore the urgency of embracing AI in manufacturing:

• Goldman Sachs predicts that more than two-thirds of current jobs will have some degree of exposure to AI automation.

• The University of Pennsylvania suggests that large language models (LLMs) could significantly accelerate about 15% of daily tasks while maintaining quality.

These insights show a key point: AI in manufacturing is not just about being efficient. It's about reimagining processes, empowering employees, and driving innovation.

Arçelik's journey: transforming global operations through AI

Arçelik, with operations in over 50 countries, embarked on its automation journey with a clear objective: to give time back to employees. "We asked a simple question: what if a day was 25 or 26 hours long?" Berberoglu explained. This approach reflects a fundamental shift in thinking about automation, prioritizing impact over mere efficiency metrics.

Their key initiatives and outcomes include:

• Building an automation community: Arçelik fosters an open innovation culture through regular hackathons, webinars, and monthly prioritization sessions. "The best ideas actually come out of those hackathons that we hold within the business units and factories," Berberoglu noted.

• Democratizing technology: The company launched a DigiCrew citizen development program, training employees in business analysis and robotic process automation (RPA) development. This approach not only accelerates automation but also provides new career opportunities for employees.

• AI-powered use cases: Arçelik has implemented over 150 automated processes across its value chain in just three years. A standout example is their sales order processing automation:

  • By integrating UiPath Document Understanding™, they achieved 5-6% efficiency gains in their supply chain department.

  • Implementation timelines shortened from 10 days to 8 days, accelerating their internal innovation pipeline.

• Sustainability focus: Leveraging AI and automation for hazardous material management in their TV plant, aiming to shift supplier control processes to earlier stages and maintain their industry leadership in sustainability platforms.

Looking ahead, Arçelik sees immense potential in combining AI with automation:

• Exploring GPT and LLM-based models to shorten internal lead times and improve accuracy in data capture and analysis.

• Investigating AI applications in product design, change management notices with suppliers, and modular manual creations.

"We think through AI automations, we're going to be shifting left in terms of compliance and process governance," Berberoglu emphasized.

Key takeaways for manufacturing leaders

1. Embrace a holistic approach: Frame AI and automation initiatives in terms of strategic growth, employee empowerment, and enhanced insights—not just cost savings.

2. Foster an innovation culture: Invest in programs that encourage employees at all levels to identify and implement automation opportunities.

3. Start with process optimization: Before automating, ensure your processes are optimized for maximum impact.

4. Leverage integrated platforms: Look for solutions that seamlessly combine AI capabilities with end-to-end business process automation tools.

5. Focus on sustainability: Use AI and automation to drive sustainability initiatives, improving both operational efficiency and market positioning.

As manufacturing organizations navigate an increasingly complex and fast-paced environment, the strategic application of AI-powered automation will be a key differentiator. By focusing on impact rather than just efficiency, manufacturers can unlock new levels of innovation, employee satisfaction, and sustainable growth.

Want to watch the replay of the manufacturing session? You can catch up with any of the UiPath AI Summit 2024 sessions—register once and get access to all the session recordings.