Transform the manufacturing value chain with AI - Microsoft Industry Blogs (2024)

With nearly 130,000 global business and government leaders in attendance, Hannover Messe is the event to showcase innovation in the manufacturing industry. This year, together with our partners and customers, Microsoft showed how our technology isenabling manufacturers to “Accelerate Industrial Transformation with AI.” With almost 40 demonstrations of technology and 30 speaking sessions, we showed how manufacturers can transform their entire value chain from product design to post-sales service with Microsoft technologies. To support customers along their transformation journey, we announced several new innovations, includingthe new manufacturing data solutions in Microsoft Fabric (preview)and the Copilot template for factory operations on Microsoft Azure AI, new Copilot capabilities in Dynamics 365 Field Service, and improved traceability in Dynamics 365 Supply Chain Management, all of which attendees had the opportunity to experience first-hand at the booth.

Ahead of the fair, we also published a new report in collaboration with MIT Technology Review Insights uncovering the current state and ambitions around AI in the manufacturing industry. The report clearly indicates that manufacturers are excited about the potential of AI and plan to make significant investments over the next two to three years to deploy AI at scale to unlock innovation and enhance efficiency.

Transforming the manufacturing value chain with AI

The Microsoft experience focused on how AI transforms the manufacturing value chain: starting with accelerating product development cycles, improving efficiency in the factory, making operations more sustainable, and finally empowering every employee across business functions with the latest AI tools. These four opportunities manifested as the four distinct neighborhoods in the booth, with demos and customer stories populating each one.

1. Unlock innovation in design and engineering

AI has the potential to unlock a tremendous amount of innovation in design and engineering by allowing manufacturers to simulate and generate new options faster. It can help accelerate development cycles for new products and services as shown by our customers Kuka & Schneider Electric, how manufacturers can accelerate the programming of industrial robots and programmable logic controllers (PLCs) with Microsoft Azure OpenAI Service, significantly speeding up development times. Siemens, along with customer Harting, showcased how generative AI can be used to speed up the design process of new industrial connectors and revolutionize mass-customization. Additionally, our partners Threedy, PTC, Hexagon, Capgemini, and Ansys showcased how applying technologies from digital twins to mixed reality to the Internet of Things (IoT) and cloud computing accelerates product development cycles.

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2. Enable intelligent factories

Making factories smarter is top of mind for manufacturers. In this area of the booth, we showed customers how they can improve quality, resource utilization and accelerate issue resolution in the factory with industrial IoT, data, and AI. Along with our partners Accenture, Avanade, Sight Machine, Rockwell, and AVEVA, we showcased the manufacturing data solutions in Fabric (preview) and the Copilot template for factory operations on Azure AI. These solutions help manufacturers unify their information technology (IT) and operational technology (OT) data estates in an industry standard data model on Fabric. The Copilot template then uses this unified data to answer questions asked in natural language to help resolve issues on the factory floor. In addition, we showcased solutions from partners such as Tulip, TCS, SymphonyAI, SAP with Syntax, Cognite, Weavix, and Unmanned Life and from customers including Andritz, Chevron, Electrolux, and Ecopetrol that utilize Microsoft Azure IoT Operations, Azure private multi-access edge compute (MEC), Azure AI, Fabric, and more to enable intelligent factories.

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3. Create resilient and sustainable operations

Manufacturing companies are looking to make their supply chain and service operations more resilient and sustainable. In this neighborhood we showed how they can achieve their goals using the power of cloud, AI, and mixed reality. In collaboration with Volvo Penta, we showed how using Microsoft Copilot in Dynamics 365 Field Service and Guides improves technician training, service manager workflows, and eventually, delivers better customer outcomes for their marine engines. With Caterpillar, we showcased how their Service Information System built on Azure provides detailed service information for CAT products from 1977 up to today. We also showcased Microsoft Sustainability Manager, which helps organizations to record, report, and reduce their environmental impacts through the power of data and AI. Our partners Blue Yonder, O9, and Tools Group demonstrated the power of cloud and AI to make supply chains more resilient.

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4. Enhance employee productivity with AI

AI has the potential to unlock productivity and innovation for employees in all areas of the business. In this area of the booth, we showcased how Microsoft Copilot in products such as Microsoft Teams, Microsoft Security, Microsoft Power Platform, Fabric, Microsoft Dynamics 365, Windows, and Bing on Surface devices can empower employees across business functions in the manufacturing enterprise to achieve more. We showcased how Microsoft Copilot for Security and Microsoft Defender for IoT empower security teams to protect their OT environments, bringing collaboration to the forefront by reducing knowledge barriers for securing such environments. In the Fabric demo, we showed how manufacturing customers can use the suite of analytics workloads in Fabric, Copilot in Fabric, and direct integration with generative AI models to transform their factory operations.

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The BMW Group showcase was the connecting thread between each of the booth neighborhoods. Built in collaboration with Hexagon, NVIDIA, PTC, and Rockwell Automation, business leaders and dignitaries could experience how technology enables cutting-edge transformation through AI-assisted design, connected data, and agile production for organizations like BMW Group. Featured in the exclusive Hannover Messe press tour highlight, which hosted more than 40 international journalists, this demo garnered significant attention for depicting how the integration of technology is changing manufacturing as we know it.

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Thought leadership and continued innovation

A space for thought leadership, the Microsoft theater was very busy this year, bringing together C-level leaders, innovators, and business leaders eager to learn about how technology is changing the sector, what their peers are doing, and the importance of diversity within manufacturing. This space connected customers to the experts: creating a unique forum of innovation where solutions to complex industrial problems were revealed, and where ideas were brought to life.

Covering topics from the return on investment (ROI) of 5G factories, to delivering practical insights for how exactly to build your own copilots, the theater sessions delivered valuable insights on the most pressing questions the industry faces today. Here are a few highlights of the theater sessions:

  • Celebrating women in manufacturing brought together influential voices of women in manufacturing to explore their career journeys, achievements, challenges, and best leadership practices to inspire the next generation of female talent.
  • Industrial transformation with AI: A discussion with Kraft and Schneider Electric shared how cloud, IoT, and mixed reality technologies together with AI are reshaping entire value chains.
  • Microsoft partners, including IBM, PwC, Fractal, DXC, Honeywell, and Rescale spoke about how their solutions built with Microsoft technologies can help transform all aspects of manufacturing from design and engineering to the factory floor.
  • Microsoft Intelligent Manufacturing Award showcase, in partnership with Roland Berger, celebrated the winners of the fifth annual Microsoft Intelligent Manufacturing Awards (MIMA), a prestigious award recognizing innovation in digitalizing the manufacturing industry in Europe, Middle East, and Africa (EMEA). The award honors the most promising and innovative digital best practices from the industrial and operations sectors: production, purchasing, supply chain, engineering, and after sales. This year’s MIMA winners were Mercedes Benz, Northvolt, Malvern Paralytical, Wilo, Andritz, and Danfoss.

Learn more about solutions from Microsoft

Finally, we would like to thank our customers and partners who joined us at the booth as exhibitors, along with the thousands of attendees who visited the booth to engage with us and looking forward to Hannover Messe 2025. To learn more about the latest solutions for manufacturing, please visit Microsoft Cloud for Manufacturing.

ReadTaking AI to the Next Level in Manufacturingto gain insights on AI adoption in the manufacturing industry

Transform the manufacturing value chain with AI - Microsoft Industry Blogs (7)

Alfonso Rodriguez Lepage

Director Product Marketing, Microsoft Cloud for Manufacturing

As the Product Marketing Director for the Microsoft Cloud for Manufacturing, Alfonso Rodriguez oversees Microsoft's marketing efforts for the manufacturing sector. He aims to help customers understand how the Microsoft Cloud and Microsoft's partner networks can solve some of the industry's toughest problems, and create a more sustainable future.

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Transform the manufacturing value chain with AI - Microsoft Industry Blogs (8)

Parag Ladha

Director of Product Marketing, Manufacturing, Microsoft

Parag Ladha is the manufacturing industry marketing lead for Microsoft, where he oversees the GTM strategy and execution for our cloud, edge, mixed reality, and AI offerings for the manufacturing sector. Parag's passion is to help customers accelerate their digital transformation journey by adopting AI at scale across the manufacturing value chain from product design and engineering to field and customer service.

See more articles from this author

Transform the manufacturing value chain with AI - Microsoft Industry Blogs (2024)

FAQs

How is artificial intelligence transforming the manufacturing industry? ›

By leveraging advanced predictive analytics and machine learning algorithms, AI in the manufacturing industry enables companies to proactively monitor and predict equipment failures, minimizing downtime and optimizing maintenance schedules. One key concept in predictive maintenance is the digital twin.

What is the role of AI in production? ›

By applying AI to manufacturing data, companies can better predict and prevent machine failure. This in turn reduces expensive downtime in manufacturing processes. AI in manufacturing has many other potential uses and benefits, such as improved demand forecasting and reduced waste of raw materials.

How much AI is used in manufacturing? ›

Automation

Robotic process automation (RPA) is the process by which AI-powered robots handle repetitive tasks such as assembly or packaging. One 2022 survey found that 43% of manufacturing businesses already use RPA.

Which of the following costs can be reduced with the implementation of AI in a manufacturing company? ›

AI technologies can reduce the operation costs of manufacturers due to several applications: Leveraging AI technologies can enhance organizations' analytics capability so that they can use their resources more efficiently, make better forecasts, and reduce inventory costs.

How generative AI is used in manufacturing? ›

By leveraging generative AI algorithms, manufacturers can automate and optimize various stages of product development, such as the design process, prototyping, and testing. This automation allows for faster iterations and improvements, ultimately accelerating the time it takes to launch a new product.

What is responsible AI in manufacturing industry? ›

Integrating Responsible AI (RAI) in further studies of those areas is essential to mitigate risks and deliver business benefits. To enable this, manufacturing specific RAI dimensions are defined to represent accountability, explainability, fairness, human-centricity, sustainability (Green AI) and privacy & security.

How can AI improve production planning in manufacturing? ›

AI's capability to analyze historical data with remarkable accuracy empowers production planners to anticipate and address future production requirements, reducing waste and enhancing efficiency. Computer vision guarantees product quality and safety by promptly detecting defects.

What are the positive effects of AI in manufacturing industry? ›

AI systems, tools and applications can also identify minor defects in equipment. AI in the manufacturing industry ensures quality control. Smart AI systems can monitor machine productivity, track performance and detect defects. They also help to decrease maintenance costs.

How many manufacturing companies are using AI? ›

In PwC research, 60% of manufacturers are using AI technology for quality control. Tata Consultancy Services found out that 28.5% of major manufacturers have invested in AI, and nearly 50% plan on doing so by 2020. According to Statista, 24% of manufacturing companies globally are planning to test AI in 2021.

How is AI going to change manufacturing? ›

AI increases operational efficiency for manufacturers by minimizing, or completely removing, repetitive tasks. Employees can focus on high-value activities that require more resources, while AI reduces the time spent on low-value tasks to increase the speed of production and business output.

What are the challenges presented by AI in the manufacturing industry? ›

Barriers to AI Adoption:

37% of respondents cite limited AI expertise or knowledge as a hindrance to successful AI adoption. 31% face challenges due to increasing data complexities and siloed data. 26% lack tools for developing AI models.

What is AI for improving the overall equipment efficiency in manufacturing industry? ›

This chapter has focused on how the leverage of the available process data by means of AI and ML solutions can impact into one of the most relevant manufacturing indicators: overall equipment efficiency. OEE has three main components: availability, quality, and performance.

How artificial intelligence is changing the industry? ›

AI is expected to improve industries like healthcare, manufacturing and customer service, leading to higher-quality experiences for both workers and customers. However, it does face challenges like increased regulation, data privacy concerns and worries over job losses.

How AI is transforming the automotive industry? ›

AI in automotive is transforming the industry by enabling manufacturers to improve the quality and efficiency of their products and processes. AI systems can help detect and prevent defects, optimize workflows, reduce waste, and assist with design and innovation.

How AI is transforming the construction industry? ›

In conclusion, AI is transforming the construction industry by improving project planning and design, optimising resource allocation, enhancing quality control and safety management, and enabling better data management and analysis.

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