Syllabus: GS3/Role of IT
Context
- The manufacturing sector is undergoing a paradigm shift, powered not by steam or steel, but by smart algorithms and intelligent systems.
AI in Manufacturing
- AI is used to create a virtual replica of processes, production lines, factories and supply chains that are used to simulate, analyze and predict performance in real time.
- AI is transforming operations from legacy facilities to state-of-the-art plants.
- It enables higher output, lower waste, real-time adaptability, and smarter design.
Current Status & Projection
- Globally, the AI-in-manufacturing market is poised to grow from $4.1 billion in 2024 to more than $25 billion by 2029.
- In India, AI adoption in manufacturing jumped from 8% to 22% in just one year (FY2024).
- Data and AI could add $450-$500 Bn to India’s GDP by 2025.
Key Applications of AI in Manufacturing
- Predictive Maintenance: Reduces downtime by up to 30% using sensor data and machine learning (McKinsey).
- Quality Control: AI vision systems detect micro-defects in real time.
- Process Optimization: AI adjusts workflows dynamically to reduce waste and boost efficiency.
- Supply Chain Forecasting: Enhances agility and responsiveness by over 20% (IBM).
- Robotics & Automation: Cobots assist workers in repetitive or high-risk tasks, improving safety and productivity.
- Sector-Specific Innovations:
- Automotive: AI-powered robotics streamline assembly and inspection.
- Electronics: Machine vision ensures precision in component assembly.
- Pharmaceuticals: AI monitors large-scale production and ensures regulatory compliance.
- Textiles: CAD/CAM systems optimize cutting, stitching, and inspection.
Challenges to Adoption
- Talent Shortage: Need for upskilling in AI and machine learning.
- Integration Costs: High initial investment slows adoption among MSMEs.
- Data Governance: Concerns over transparency and explainability of AI models.
- Reliable connectivity and cloud access remain uneven, especially in tier-2 and tier-3 cities.
- Low MSME Adoption: Only about 15% of SMEs currently use AI in manufacturing.
- Cautious Optimism: About 44% of manufacturing leaders hesitate to scale generative AI due to concerns about explainability and accuracy.
Government Initiatives
- National Program on AI (MeitY): It promotes responsible AI use across sectors including manufacturing.
- Samarth Udyog Bharat 4.0: Supports smart factory development and Industry 4.0 adoption.
- IndiaAI Mission: ₹10,300 crore allocated to build AI infrastructure and indigenous models.
- Centres of Excellence (CoEs): Focused on AI in healthcare, agriculture, education, and sustainable cities.
