AI could save manufacturing from the baby boomer exodus
In this podcast, Allie CEO Alex Sandoval explains why training AI for factory jobs can reduce labor shortages, attract young workers and usher in a digital manufacturing future.
Evidence continues to mount that AI is starting to throw people out of work and stifle the fledgling careers of new graduates. But the picture isn't all bad.
Many workers are learning to use AI so they can do their jobs more effectively and prepare themselves for a future where AI skills will be necessary. Training AI to do important work might not just be a way to cut labor costs; it could also ensure work gets done when there aren't enough people to do it, capturing and codifying in software the specialized skills of people who are leaving the workforce.
That's the opportunity envisioned by Alex Sandoval, CEO and co-founder of Allie Systems, which makes an AI, analytics and data platform for manufacturers. Allie takes information like the production orders in ERP and manufacturing execution systems and combines it with data from factory machinery, cameras and other equipment to monitor conditions in real time and help managers optimize operations. An AI copilot provides recommendations and makes certain adjustments automatically.
In this episode of Enterprise Apps Unpacked, Sandoval explains how Allie's technology can capture the know-how of workers, including even the "tribal" knowledge and instincts that can only be gained from years of experience. He also discusses why transferring skills to AI won't necessarily enable more job destruction. In fact, it could be the very thing that keeps factories humming, makes them more efficient and responsive, and attracts young, digital-native workers to the industry.
The baby boom goes bust
Alex Sandoval
For decades, the manufacturing sector has struggled to fight the perception that factory work is dirty, career-killing drudgery. With baby boomers retiring in growing numbers and few people from younger generations taking their place, labor shortages have become endemic. In North American manufacturing, the reshoring and onshoring trends have only exacerbated the need for workers.
Sandoval sees AI as a way to solve these shortages and prepare workers for the high-tech nature of future manufacturing jobs.
"Ultimately, all of this is going to serve not to replace workers, but to augment the ability to be able to reason and make decisions," he said. Manufacturing processes are becoming so complex that it's hard even for seasoned workers to store all the information and respond quickly.
"Every time I'm changing a product, or every time I'm changing a recipe, now, with the help of AI, a worker can manage multiple things in parallel. They almost have developed superhuman abilities," he said.
But won't that ultimately lead to AI killing even more jobs? Sandoval doesn't think so, but he admits the most repetitive manual and mechanical tasks are going away.
The new jobs, he said, will focus on capturing and organizing the data coming from machines and building it into knowledge graphs and other structures the AI can easily understand. They'll also involve building and training AI models so they get better at prediction and optimization.
Two things need to happen for companies to realize value from these AI capabilities, according to Sandoval.
"We need to really get the younger generation excited about manufacturing and to realize that manufacturing is 30% of global GDP," he said. "It's probably one of the most exciting careers right now because it's applications of things where you can actually see real-world impact."
At the same time, he said, organizations must be prepared to build the data foundation that AI requires.
Other topics discussed in the podcast include the following:
- How the AI used for knowledge transfer and training fits in with the learning management systems most companies already have.
- An overview of the Allie platform.
- Examples of manufacturing customers who use Allie AI for knowledge capture and training.
David Essex is an industry editor who covers enterprise applications, emerging technology and market trends, and creates in-depth content for several TechTarget websites.
