(269b) Leading the Industry 4.0 Journey in the Manufacturing Sector with Cross-Industry Collaboration and AI-Powered Innovation

While manufacturing represents 16% of global GDP, manufacturing industries account for 64% of global R&D spend. Yet innovation is long overdue since the manufacturing sector has experienced a decade of productivity stagnation and demand fragmentation. Organizations that have taken Industry 4.0 innovation to scale beyond the pilot phase have experienced unprecedented increases in efficiency with minimal displacement of workers. However, most companies appear to be stuck in “pilot purgatory”. Widespread adoption of artificial intelligence (AI) and allied Industry 4.0 technologies at scale, through the combined efforts of companies and governments, can lead to a sizeable increase in global wealth creation, benefiting people throughout society.

However, there is potential for worker displacement if changes are not handled properly. Strengthened collaboration among stakeholders is needed to understand unexpected consequences and manage the transition.

Leaders in digital manufacturing and globalization 4.0 exhibit all the essential characteristics of the Industry 4.0 revolution. Moreover, they confirm the hypothesis that they have the potential to generate new economic value, driven by improvements in the full spectrum of production value drivers: resource productivity and efficiency, agility and responsiveness, speed to market and customization to meet customer needs. Transforming existing production systems, innovating value chains and building new business models with disruptive potential for established businesses can create value.