(This column originally appeared in Forbes)
There are many good articles like this one and this one about how AI is going to change manufacturing. Most of these are conjecture, predictions and future-telling. They rarely list actual examples. They’re valuable in that they can give executives some pause for thought. But I’m more interested in how AI is actually being used by actual manufacturing and distribution companies actually now. So where is it? I’m looking. Here’s what I’m seeing so far.
AI For Manufacturing: Microsoft and Google
Both Microsoft and Google have published this year more than 1,300 use cases of how their Copilot and Gemini AI offerings are being used by businesses. It’s interesting but unfortunately mostly repetitive.
99 percent of what I’m seeing is mostly the same thing: AI being used to help people write better emails, analyze data, chatting with customers online or performing research. It’s mostly backoffice stuff which is important, but it’s not hands on the shop floor. Of all these use cases I found only about a dozen that specifically were about manufacturing and distribution.
For example, Microsoft says that its customer Rolls Royce is using its AI tools to “optimize engine design, turbine production, and health monitoring” which they say has “boosted machine usage by 30 precent, reduced scrap, and proactively preventing approximately 400 unplanned outages per year.” The software giant claims that another customer, Grupo Bimbo is using AI to “modernize manufacturing, reduce downtime, and drive cost savings.” A company called ZF Group is using over 25,000 of Microsoft’s Power Platform apps to “engage 37,000 users to optimize manufacturing efficiency.”
Google says that UPS has used its AI tools and platforms to “build a digital twin of its entire distribution network, allowing workers and customers to view package locations in real time, representing a significant leap in transparency and operational control.” A global telematics leader called Geotab that processes billions of data points daily from 4.6 million vehicles used Google’s AI tools to “enable real-time fleet optimization, driver safety improvements, route efficiency, and decarbonization efforts.” Another Google customer called Kinaxis is implementing data-driven supply chain solutions for logistics, including scenario modeling, planning, operations management, and automation to enhance responsiveness. Prewave, a supply chain risk intelligence platform is leveraging Google Cloud AI “to provide end-to-end monitoring, detect ESG risks, and deliver deeper visibility into supplier operations.”
I don’t doubt that these companies are getting benefits from AI on the shop floor and to improve their logistics and supply chains after building internal solutions with Microsoft and Google tools. It’s just that I read a lot of words like “optimize” and “enhance” and “enable” without really understanding what that means in real dollars and profitability. I’m sure the managers at these companies know. They better know. They spent untold millions building these systems.
AI For Manufacturing: On The Trade Show Floor
Are equipment manufacturers leveraging AI in their products? I looked at the new products being offered and exhibited at trade shows like Fabtech, Modex and ProMat. These machines do everything from changing tools and laser welding to beveling, boring, centering, grooving, milling, tampering, slitting and processing coils. The companies making these products are without question making them better, more reliable, safer and faster each year.
But they’re mostly doing this through better engineering. There’s a smattering of AI usage I’m seeing — mostly being able to understand simple voice commands or to program jobs. And I’m assuming that these companies are at least starting to use AI to help them accomplish their better engineering but my hunch is such use is in its nascent stages, at least for now.
The real AI action on the manufacturing floor in 2025 is robotics. For example, Amazon’s Vulcan robots have advanced sensors that detect the size and weight and dimensions of products and are able to sort and move and pack them as a human does. ABB Robotics has a highly specialized product picking tool that does something similar. Nissan and furniture maker Four Hands are using robots to move boxes from the warehouse floor on to and off of trucks, saving significant time that humans spend loading and unloading. Companies like Boston Dynamics ANYbotics, Agility Robotics, Figure AI, Sanctuary AI, and Unitree Robotic are creating robots that do inspections, move materials, pick and place parts, sort products, carry equipment and perform maintenance checks.
AI For Manufacturing: It’s All About Robotics
So what does this mean for manufactures and distributors?
If you’re running or managing an inventory-focused business you can build AI solutions using tools and examples mentioned above from Microsoft and Google to help increase efficiencies in your back office. But for the shop floor, your real investment dollars are going to be targeted towards robotic solutions leveraging AI. Save your money. Build up your reserves. Start arranging your financing. Get your people ready. This is where to invest.
