Beyond automation: Mastering the human-AI balance in Asian manufacturing

As industries across Asia embrace the digital revolution, integrating artificial intelligence (AI) and automation into manufacturing processes offers significant potential to transform the landscape. However, achieving a harmonious balance between automation and human oversight is paramount to sustainable transformation.

Figure 1: Most important technologies for manufacturing

The rise of AI in manufacturing

The manufacturing sector is undergoing a seismic shift driven by advancements in AI and automation technologies. According to the IBM Institute for Business Value (IBV), companies that adopt AI in their operations can achieve a 20% increase in productivity and a 15% reduction in costs. This data underscores the urgency for manufacturers to invest in AI capabilities.

Ong Tun Kim, general manager of IBM Manufacturing Solutions, comments, "AI inventory management is a good practice to optimise and automate the inventory management process, ensuring the right products are in the right place at the right time."

By utilising AI, manufacturers can enhance forecasting accuracy and streamline decision-making. The focus shifts from merely reducing manual bottlenecks to leveraging intelligent systems that facilitate smarter operations.

Addressing implementation barriers

Despite the clear advantages of AI, many small and medium-sized enterprises (SMEs) in Asia face significant barriers to implementation. "For many SMEs, they are often challenged with limited resources or digital maturity," observes Ong.

To address these challenges, a phased approach to AI integration is essential. This strategy allows companies to gradually adopt new technologies without disrupting existing processes.

One effective strategy is using Application Programming Interfaces (APIs) to connect AI tools with legacy systems. Ong posits that "this method allows SMEs to leverage AI capabilities without requiring extensive system overhauls."

Furthermore, embracing cloud-based AI tools can facilitate smoother integration, making it easier for SMEs to harness AI's benefits.

"Given the limitations that SMEs face, we also encourage partnering with AI solution providers that specialise in working with SMEs and legacy systems. These partners can offer tailored solutions, expert guidance, and ongoing support throughout the integration process." Ong Tun Kim

She posits that a key factor to success when implementing new technologies is enabling people. "SMEs need to offer comprehensive training and support programs to help their employees understand and effectively use AI tools. The investment in human capital facilitates a smoother integration process and promotes user adoption," she continues.

Enhancing risk management

Manufacturers must diversify their supplier networks to mitigate geopolitical risks in today's volatile global market. AI plays a crucial role in this endeavour. Ong points out that "AI can be a powerful tool for managing risks associated with supplier networks."

Companies can use AI algorithms to identify potential suppliers from various regions, considering factors like capacity and compliance.

The proactive nature of AI enables companies to anticipate disruptions and adjust their supply chain strategies accordingly. She explains, "With this foresight, companies can reinvent their supply chain strategies, shifting from a reactive to a proactive stance."

This shift enhances resilience and adaptability, crucial traits in the fast-changing Asian markets.

The human-AI collaboration

Achieving a balance between AI-driven automation and human oversight is essential for maintaining flexibility in manufacturing. Ong advocates for "design[ing] hybrid workflows that combine AI-driven automation with human oversight."

This integration increases efficiency while ensuring that human workers adapt to changing market conditions.

Implementing Human-in-the-Loop (HITL) design principles is vital. This approach ensures that AI systems assist human workers by providing insights and recommendations while allowing human control and decision-making.

She emphasises that "this approach maintains human control and decision-making authority, ensuring adaptability in fast-changing markets."

Continuous evaluation of workflow effectiveness and employee satisfaction is critical. Manufacturers must assess how well AI and human workers collaborate and make necessary adjustments to enhance performance.

Ong submits, "Most critically, companies implementing AI must prioritise ethical and responsible AI practices." This commitment builds trust with customers and stakeholders, fostering long-term relationships in a competitive marketplace.

Upskilling the workforce

Figure 2: Investing in new ways of working skills

As AI becomes increasingly integral to manufacturing, the need for a skilled workforce capable of leveraging these technologies is paramount. IBM's Ong stresses that "people are the secret ingredient to winning with AI." Companies must prioritise AI literacy and data-driven decision-making as essential capabilities for their workforce.

Workforce development programmes should integrate AI knowledge and skills into employee development plans. She recommends "mandating foundational AI courses across all roles and all levels across the company."

Companies can accelerate AI literacy and fluency by launching targeted education initiatives and blending training with hands-on projects.

Effective communication from leadership is also crucial. Leaders must convey how AI will enhance employees' contributions and streamline tasks.

"When employees feel that they have a role in an AI-driven future, they will be more motivated to engage, learn and adopt AI." Ong Tun Kim

This sense of investment is vital for fostering a culture of innovation and continuous improvement.

Ethical considerations in AI implementation

As manufacturers navigate the complexities of AI integration, ethical considerations must remain at the forefront. Ong highlights the importance of "ensuring that their AI systems are transparent, fair, and unbiased." Ethical AI practices foster trust and mitigate risks associated with bias and discrimination in decision-making processes.

Manufacturers can build stronger relationships with customers and stakeholders by prioritising ethical AI. Transparency in AI operations enhances accountability, allowing companies to demonstrate their commitment to responsible practices.

"By leveraging AI in these ways, companies can create a more resilient and diversified supplier network, effectively mitigating geopolitical risks." Ong Tun Kim

A future of collaboration

The journey towards mastering the human-AI balance in Asian manufacturing has its challenges. Ong believes that integrating AI into manufacturing processes presents immense opportunities for growth and efficiency.

By embracing a collaborative approach prioritising human oversight, companies can leverage AI's potential while ensuring adaptability and ethical integrity.

In a rapidly evolving landscape, the successful manufacturers of the future will be those who recognise the value of their workforce and invest in the synergy between human intelligence and artificial intelligence.

As we move towards Manufacturing 5.0, the emphasis on this balance will define the next era of innovation, resilience, and competitiveness in the Asian manufacturing sector.