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The
study surveyed over 2,500 leaders worldwide involved in AI
technology decision-making and found that 58% of manufacturing
leaders plan to increase spending on AI in 2024. This is lower
than the global consensus of 63% and U.S. consensus of 69%.
In 2023, 93% of all leaders and 93% of manufacturing leaders
planned to increase spending on AI.
WHY IT’S IMPORTANT
PitchBook data from last week showed a quarterly jump in U.S.
venture capital funding, largely driven by significant
investments in AI companies.
Investors are betting on startups with the hope that revenue
from AI adoption will yield significant returns. Nearly 50% of
manufacturers worldwide reported increased cost savings this
year after adopting AI initiatives, according to Lucidworks'
study.
"While many manufacturers see the potential benefits of
generative AI, challenges such as response accuracy and cost are
causing them to take a more cautious approach," said Mike
Sinoway, CEO of Lucidworks.
CONTEXT
Generative AI processes inputs or prompts to produce new content
based on past data used to train it. However, it sometimes
generates inaccurate or nonsensical outputs known as
hallucinations.
While 36% of all respondents expressed concerns about response
accuracy due to hallucinations, a higher number manufacturing
respondents, 44%, share this concern.
Despite only 20% planned AI projects being implemented by
manufacturers in the past year, 55% of them feel that they are
on par with their peers in AI adoption.
COST FACTOR
Over the past year, 70% of manufacturing companies opted for
more expensive commercial AI models. Lucidworks suggests that a
shift to more accessible open-source models could occur if they
prove to be as efficient and more resourceful at a lower cost.
While manufacturers are optimistic about the cost benefits of
AI, they aim to maximize its value amid smaller planned
spendings this year.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Tasim
Zahid)
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