- Lucidworks’ second annual Generative AI Global Benchmark Study shows a significant drop in planned AI spending by manufacturing leaders for 2024.
- Despite high interest, implementation lags, with just 20% of AI projects realised, indicating a critical need to bridge the gap between AI ambition and practical adoption in manufacturing.
OUR TAKE
Lucidworks’ recent study indicates a cautious stance among manufacturers regarding AI adoption, despite high enthusiasm. Implementation lags behind interest, with cost and accuracy concerns, particularly prominent in manufacturing, hindering progress. The sector shows less worry about job displacement than others. Addressing these challenges is crucial to bridge the gap between AI ambition and practical application in manufacturing.
–-Vicky Wu, BTW reporter
What happened
Lucidworks, a leading provider of search and total AI solutions, revealed findings from its second annual Generative AI Global Benchmark Study, indicating a cautious trend amongst manufacturers concerning the deployment of AI initiatives. The study, which surveyed over 2,500 global leaders involved in AI technology decision-making, suggested that although enthusiasm for AI remains high, actual implementation is trailing, particularly within the manufacturing sector.
According to the study, only 58% of manufacturing leaders intend to increase AI spending in 2024, a considerable decline from 93% in 2023. Despite high initial interest in AI, as evidenced by 93% of surveyed leaders planning to boost spending in 2023, implementation has lagged, especially in manufacturing. Merely 20% of planned AI projects have come to fruition, mirroring broader industry struggles where only 25% of companies have launched AI initiatives as intended. A principal factor in this discrepancy is the increased concern over AI accuracy and costs, with 44% of manufacturing leaders specifically worried about accuracy, a figure notably higher than the 36% average across all respondents. Significantly, manufacturers are less concerned about job displacement compared to other sectors. The study highlights a gap between AI ambition and execution, particularly in manufacturing, underlining the necessity of addressing accuracy and cost challenges to expedite adoption.
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Why it’s important
Mike Sinoway, Chief Executive Officer of Lucidworks, provided insights into the study’s findings, observing that whilst the manufacturing sector recognises the potential of generative AI, anxieties over the accuracy of responses and associated costs are guiding them towards a more measured and prudent approach. Despite the more gradual rollout of AI initiatives than initially envisaged, almost half of the manufacturers surveyed have encountered cost reductions, indicating that the technology yields concrete advantages when implemented efficiently.
Sinoway stressed that manufacturers hold the capacity to harvest considerable gains from generative AI should they attain the correct balance between expenditure and risk. By streamlining efficiency, enhancing customer experiences, and curtailing operational expenditures, the industry stands poised to benefit substantially. The documented superior cost benefits in 2024 may foster a more optimistic viewpoint on AI investments for the impending year, possibly precipitating a revitalised upsurge in adoption and spending.
