While much has been made about generative artificial intelligence, or GenAI, in creative and tech-related circles, the penetration of AI into other sectors of society has been a little more subdued.
Research from Rockwell Automation (NYSE:ROK), Inc, an industrial automation supplier with a focus on digital transformation, has revealed that Australian manufacturers are turning to GenAI in ever-increasing numbers.
GenAI’s ability to generate new product designs, optimise business processes and develop and test products in a virtual, immersive environment, coupled with the new Casual AI’s ability to learn cause and effect relationships to feed into those GenAI models makes for a massive potential productivity boost for companies.
A big enough boost that 89% of Australian manufacturers are already opting in or intend to do so within the next two years.
Almost universal uptake
“Australian companies are already embracing GenAI and Causal AI with even wider adoption expected,” said Rockwell Automation regional director, South Pacific, Anthony Wong.
The company’s 2024 State of Smart Manufacturing Report (SoSM) surveyed more than 1,500 manufacturers across 17 countries, including 88 in Australia and New Zealand.
Of survey respondents in this region, 45% reported wide adoption of GenAI and Causal AI while a further 34% asserted they planned to invest in the new technology within the next 23 months.
Interestingly, Australia and New Zealand’s uptake is already higher as an industry compared to trading partners – Canada currently sits at 37%, the UK at 41% and the US at 43%.
Tech Council of Australia (TCA) has predicted GenAI could deliver between $45 billion and $115 billion in value to the Australian economy by 2030, depending on the pace of implementation.
With an ageing population playing havoc on working demographics, a strong boost in labour productivity will be necessary to maintain our current levels into the future.
A recent McKinsey study found that GenAI has the potential to increase Australian labour productivity by 0.1% to 1.1% a year through 2030.