Artificial Intelligence (AI) and Machine Learning (ML) disrupting the manufacturing landscape in North America

Artificial Intelligence (AI) and Machine Learning (ML) disrupting the manufacturing landscape in North America

In the rapidly evolving landscape of North American manufacturing, a focus on cybersecurity and data privacy has been paramount, particularly in safeguarding critical infrastructure. This emphasis is reflected in the latest 2024 ISG Provider Lens Manufacturing Industry Services and Solutions report for North America, which sheds light on key trends shaping the digital transformation and technology investment of manufacturing enterprises.

The report underscores several significant trends, with manufacturers investing heavily in smart and digital factory solutions. Advanced technologies like XR (extended reality), 5G, AI, and Industry 4.0 are being leveraged to drive innovation and operational efficiency. Additionally, there is a strong focus on end-to-end product engineering, with dedicated Centers of Excellence (CoEs) supporting the integration of emerging tech in product development.

Aftermarket services are also being transformed, with investments directed towards cloud platforms and outcome-based models. This includes optimizing parts supply chains, predictive maintenance, and e-commerce capabilities to improve customer engagement and operational efficiency.

Industry transformation services are another priority, as manufacturing firms seek to modernize operations, supply chains, and customer engagement through digital transformation initiatives. Data- and AI-driven strategies are central to these efforts, with companies like Hankook Tire emphasizing the importance of data and AI in their digital transformation strategies.

The 2024 report highlights several rising stars in various quadrants, including Akkodis, Cyient, Hexaware, Hitachi Digital Services, Kyndryl, and NTT DATA. Capgemini has been named the global ISG CX Star Performer for 2024 among manufacturing industry services and solutions providers, earning the highest customer satisfaction scores in ISG's Voice of the Customer survey.

The report also reveals that North American manufacturers are adapting or replacing traditional approaches to product design and production, driven by economic shifts, evolving customer expectations, and advancements in technology. Many are introducing services alongside or instead of traditional products to increase both revenue and customer satisfaction, often partnering with service providers to implement innovative business models.

The report evaluates the capabilities of 35 providers across five quadrants, with leaders including Accenture, Capgemini, Cognizant, HCLTech, IBM Consulting, Infosys, TCS, and Wipro in all five quadrants. Other leaders in multiple quadrants include Akkodis, EY, HARMAN, LTIMindtree, and LTTS, while Deloitte, NTT DATA, and Tech Mahindra lead in three quadrants each.

As manufacturers in North America embrace the 'factory of the future,' using AI and the cloud to make production systems more efficient and resilient, they are also investing in new technologies and strategies to gain resilience in their supply chains. This includes adopting cloud-based supply chain management, advanced analytics, real-time IoT tracking, and AI-enabled optimisation.

The report is available to subscribers or for one-time purchase, offering valuable insights into the ongoing transformation of North American manufacturing. As manufacturers continue to optimise their operations, increase sustainability, and integrate after-sales services, they are positioning themselves for long-term success in the digital age.

1. The focus on cybersecurity and data privacy in North American manufacturing extends to investments in financing solutions, as stakeholders ensure the safeguarding of critical infrastructure against potential cyber threats during digital transformation.
2. The digital transformation of North American manufacturing is further fueled by an intense interest in data-and-cloud-computing, with an emphasis on leveraging AI and emerging technology to optimize business operations and improve overall efficiency.
3. In the rapidly advancing technological landscape, smart partnerships between manufacturing firms and leading providers in areas such as finance, cybersecurity, and technology are essential for navigating and thriving in the 'factory of the future' and the broader digital age.

Read also: