Intelligent manufacturing

AI is reshaping the manufacturing landscape

KPMG's extensive research into AI in manufacturing reveals a transformative blueprint for manufacturers aiming to harness the power of artificial intelligence. AI has become a necessity rather than an option, enabling predictive maintenance, intelligent automation and data-driven optimisation. By engaging with executive leaders across eight key global markets, this comprehensive report outlines actionable insights on how AI can transform industrial ecosystems to unlock AI’s immense value and create competitive advantage.

At-a-glance insights:

AI is a competitive necessity and early results are promising

However implementation has been challenging and sustainability is a concern

Driving efficiency is a core strategic objective for manufacturing

How to realise value from your AI transformation journey

To address these challenges, KPMG introduces the three phases of AI value — a framework designed to guide manufacturers through the AI adoption journey. This phased approach can unlock significant value through AI-driven transformation, ensuring manufacturing companies remain competitive and innovative.

The Enable phase focuses on enabling people and building AI foundations. Organisations appoint a responsible executive, create an AI strategy, identify high-value use cases, boost AI literacy, align with regulations and establish ethical guardrails. AI pilots are launched across functions, while cloud platforms and pre-trained models are leveraged with minimal customisation.

The Embed phase integrates AI into workflows, products, services, value streams, robotics, and wearables, delivering greater value. A senior leader drives enterprise-wide workforce redesign, re-skilling and change, embedding AI into operating models with a focus on ethics, trust and security. AI agents and diverse models are deployed, supported by cloud and legacy tech modernisation, while enterprise-wide data enhances operations.

The Evolve phase evolves business models and ecosystems, using AI and frontier technologies like quantum computing and blockchain to solve large sector-wide challenges. AI orchestrates seamless value across enterprises and partners. Emphasising ethics and trust with real-time security, this phase uplifts human potential with broad and deep workforce training, fostering a creative, innovative and value-driven future.