In his over three-decade career at ABB, Sanjeev Sharma has seen the automation story from close quarters. While the various automation technologies were disruptive in their own ways, AI, he thinks, has been much easier to adapt. Hard to believe, perhaps, but Sharma, ABB India’s Country Head & Managing Director, says that the relative effort is lower, provided one is clear about the outcome. “It is very different from the time when we bought software or went about the process of configuring it. Insights in AI are quick and profound.”
The underlying theme at each stage for manufacturing, be it Industry 2.0, 3.0, 4.0 or now 5.0 using cobots (robots that can collaborate with humans), has one common thread—increase productivity. The big moment for AI, according to Sharma, was around 2016 when digitalisation first started to take off. “We saw Google Maps, search engines and data-based tech harnessing insights for the future and that was potent. In many ways, the pendulum shifted then. Now, with data, the task is to put it to good use,” he explains. By querying a database, answers are now available that improve decision making at the level of engineering, manufacturing and the ability to increase OEE (overall equipment effectiveness).
The pace of change through AI is expected to be so rapid that the need to adapt cannot ever be exaggerated. In that sense, if Industry 4.0 was a focus on efficiency, 5.0 could well be the neutraliser. “Efficiency is good but not at the cost of effectiveness. AI should be employed in a responsible manner, with both humans and technology co-existing,” says Jayanta Banerjee, Group CIO of Tata Steel. According to him, humans will never be replaced by AI and the question is really about how to make the best use of technology.
Across manufacturing, the benefits have been significant. Jayant Acharya, Deputy Managing Director of JSW Steel, speaks of how his industry can today improve operational efficiency and productivity, reduce costs, up its quality control and enhance customer experience, with a sustainable orientation. His company is looking to augment its capacity (from 27 million tonnes per annum today to 38 million tonnes per annum by FY25). “This will leverage our three key strategic pillars [innovation, sustainability and partnerships], supported by end-to-end digital transformation of our steel manufacturing operations,” says Acharya. The plan is to deploy game-changing advanced technologies such as AI/ML, robotics, standard and advanced analytics, edge computing and cloud deployments, plus the introduction of robotic process automation (RPA)/bot-based interventions and intelligent digital video analytics. “These technological interventions will enable JSW Steel to create a network of digitally connected smart steel factories in India.” The company’s transition to digitally connected smart steel manufacturing includes three critical parts—creating a smart iron zone, creating a smart steel zone and developing a smart milling zone.
The apprehension that AI will displace jobs does not find too many takers. ABB’s Sharma predicts there will be a different nature of jobs created during the period. “From a business point of view, companies must be patient since expectations are high and [the] approach should be one of patient capital,” he explains. Sharma equates it to a bamboo tree, which hardly grows for five years and then sharply takes off. JSW Steel’s Acharya says AI will alter the job dynamics, especially for those who are underprepared. “The advent of digital transformation will require specific skill sets and manpower, and that can come from a judicious mix of lateral hires with digital skills and upskilling the current employee base,” he points out. At a group level, the entity has created a multi-disciplinary task force of high-potential employees comprising more than 50 data scientists—to be expanded to 100—to steer digital transformation across its businesses.
On the issue of reskilling, an interesting view comes from Tata Steel’s Banerjee. “In the past, a car had a rear-view mirror and now there is a dashboard. To put that together, you need a very able and skilled bunch of people,” he says. To elaborate the point, Banerjee thinks the co-pilot will always be of great assistance: “But there needs to be a pilot and that is the human. In this transition, the human can never be outrun by technology.” In that sense, the disruption will come in the form of reskilling. His company took the route of investing in cloud and then data. “Every technology is critical and must be put to good use. But it must still deliver on an RoI basis and that is how it will be judged.” In that sense, companies will look at AI in the same manner. How they manage to do it in a world where agility is the buzzword is what will separate the men from the boys. The story has barely started.
@krishnagopalan