Generative AI seen contributing AU$5b to Australia’s manufacturing sector by 2030

AI uses range from design, task automation, data analysis to rapid training of workers.

The use of generative artificial intelligence (AI) is poised to boost Australia’s manufacturing sector by as much as AU$5b (US$3.4b) annually through 2030 and potentially redefine the industry that prides itself for quality products, according to a joint study by Microsoft and the Tech Council of Australia. 

Greater adoption of generative AI is seen boosting the country’s overall economy and its manufacturing sector is one of the four key sectors expected to benefit the most as the technology supports advanced manufacturing.

The technology could contribute between AU$2b and AU$5b each year to the sector by 2030, strengthening the country’s reputation for producing high-quality, technically-advanced products, based on the Australia’s Generative AI Opportunity report.

It said generative AI could shorten design cycles, further improve quality control in factories by streamlining processes in prototyping and design as well as automate tasks.

An estimated 30% of a manager’s tasks in manufacturing can be automated and 19% can be assisted with a full adoption of generative AI. Such automation could help managers, who account for 17% of the overall workforce, focus on more complex and strategic tasks.

Other uses include creation of detailed digital prototypes based on the specifications of artists, as well as assistance in market testing and feasibility analysis.

Manufacturers can also choose to integrate AI into their supply network control towers to automate data processing, and even use AI-powered softwares to support demand forecasting and customer data analysis.

“Generative AI has the potential to redefine the industry,” said Kate Pounder, CEO at the Tech Council of Australia. “But the sector needs to accelerate its digital transformation to make the most of this significant opportunity.”

Australia’s manufacturing sector currently uses AI in predictive maintenance, quality control and robotics, although the adoption rate is still low with only 20% of local manufacturers doing so, according to the report.

“The industry’s lagging investment in digital technologies could cause it to fall behind other sectors in harnessing the full potential of generative AI,” it said.