According to a recent report by Saudi Arabia’s Centre for the Fourth Industrial Revolution, advanced digital technologies are transforming manufacturing across the kingdom, facilitating connectivity, automation, and artificial intelligence and helping to boost production efficiency, productivity, and business resilience.
Looking ahead, Saudi Arabia’s Future Factories programme will build on this momentum by promoting the best global practices of the fourth industrial revolution and furthering the sector’s digital transformation.
Furthermore, the kingdom’s dedication to industrial growth is evident in its Vision 2030 strategy and the subsequent National Industrial Development and Logistics Programme. This ambitious plan seeks to dramatically expand the manufacturing sector’s contribution to GDP by tripling it to over US$238 billion and doubling non-oil industrial exports to US$149 billion by 2030.
As part of this strategy, the kingdom has recognised an opportunity to become a home to advanced manufacturers who place pioneering technology at the heart of their success. Indeed, as technology continues to improve, those manufacturers who base themselves in Saudi Arabia must embrace a Fifth Industrial Revolution, where technology becomes more intelligent and human workers are empowered to work more productively than ever.
In this Fifth Industrial Revolution, AI, robotics, automation, and the Internet of Things (IoT) will become deeply embedded in manufacturing operations. However, this development is not simply about replacing human workers. Rather, manufacturers will realise sustainability, efficiency, and productivity gains by empowering human workers through technology.
Generative AI (GenAI) is a key driver in this regard, as it democratises technology use and enables complex tasks to be conducted using natural language. Saudi businesses understand well the potential of the technology, with a staggering 68 per cent planning to deploy generative AI by October this year.
Man + machine: a powerful combination
Using AI as a tool for employee empowerment, Saudi manufacturers can solve some of the toughest challenges facing the sector.
The Saudi labour shortage is a prime example. As the kingdom looks to diversify its economy away from fossil fuel production, it is coming up against an acute skills shortage. This is particularly the case in industries that require niche skills, such as advanced manufacturing.
Human-AI collaboration helps solve this challenge, with each element of the collaboration supporting the other. Employees bring to the table skills including adaptability, creativity, and problem solving, while AI excels at speed and precision in handling tasks. Working in this way, employees become more productive and tend to be happier in their work while production errors drop off.
Supply chain resilience is another good example. This is of particular concern for manufacturers in the Middle East given recent geopolitical tensions and the attacks on shipping in the Red Sea. With AI, decision makers can draw in real-time analytics and machine-derived insights to make better choices, predict supply chain issues, and receive an early warning on delays or shortages. What’s more, AI algorithms can analyse past and current data to predict demand and improve the way in which manufacturers manage their inventories and just-in-time production processes.
Making the right technology choices
However, if Saudi manufacturers are to unlock the full efficiency and productivity gains human-machine collaboration promises, then they need to make the right technology choices, particularly when it comes to integrated management systems.
There are a range of criteria manufacturers should look for. First, their infrastructure needs to be scalable and flexible so that manufacturers can adapt easily to dynamic market conditions as well as supply chain shocks and other unforeseen challenges. Manufacturers should put in place an organisation-wide platform that facilitates real-time visibility into their operations and processes, while simultaneously promoting collaboration between various teams. Gen AI can play an important role by helping smooth operations through simplified task management and scheduling.
Second, manufacturers should adopt a cloud-first approach. Freeing them of large capital investments and unlocking IT resources that were previously committed to maintaining infrastructure, the cloud enables manufacturers to unlock budget for higher-value projects that have tangible benefits in terms of what matters most to the organisation, whether that’s boosting operational efficiency or improving the customer experience. The cloud will also prove essential in implementing security measures to protect sensitive data and systems.
Building the AI future on the strongest of foundations
Human-AI promises to transform manufacturing for the better. However, to realise this promise in full, Saudi manufacturers need to put strong foundations in place by making the right investment decisions. Organisations that think beyond efficiency savings and look to the cutting-edge innovation that AI and other key technologies of the Fifth Industrial Revolution make possible will be best placed to thrive. As the technology revolution unfolds, their competitors might increasingly struggle to keep pace.
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