As more manufacturers turn to digital solutions to increase productivity and reduce waste, integrating AI into these platforms will be disruptive. By driving innovation, adding functionality, and opening new markets, AI-powered industrial software is expected to play a key role in shaping the future of manufacturing. Integrating AI into industrial software development can significantly enhance the value proposition for manufacturers. The benefits of AI applications include increased productivity, enhanced functionality, and market expansion.

X460-G2-48P-10GE4 Schroder Investments noted worrisome skills shortages in a number of key positions across the manufacturing industry, which is struggling to fill skilled jobs, but the Manufacturing Institute estimates that about 425,000 positions will remain unfilled by 2029.

X460-G2-48P-10GE4

At the same time, the demographic structure of the manufacturing workforce continues to age. With an ageing population and persistent skills shortages, wage inflation in the US manufacturing sector is much higher than overall product inflation in the manufacturing sector, putting pressure on manufacturers’ profit margins. Pressure on profit margins has prompted manufacturers to turn digital to boost industrial productivity. The adoption of industrial software was and is a key driver of productivity for manufacturing workers, and the pandemic has accelerated the need for this.

X460-G2-48P-10GE4 Schroders believes that integrating AI into industrial software development can significantly enhance the value proposition for manufacturers. The bank expects that the application of AI will bring many benefits, the first is to improve work efficiency, AI can improve the programming efficiency of software engineers, accelerate the speed of innovation and streamline the process of drawing up plans.

The second is enhanced functionality, where AI can improve the reliability, interface, and usability of software platforms. Machine learning algorithms analyze incoming data to identify patterns, and AI uses that data to make instant decisions that augment the software.

Finally, expanding the market, due to enhanced functions and improved performance, the integration of AI can promote the application of industrial software in new markets, and open up a wider range of application scenarios.