AI in Manufacturing: What It Means in Today’s Technology Landscape
Artificial Intelligence (AI) is progressing at a remarkable pace, reshaping how manufacturers approach production, efficiency, and innovation. It offers new opportunities to streamline processes and gain a competitive edge. You may think the adoption of AI is in the distant future, but I’d suggest you start using it now.
In this blog, we’ll explore the practical applications of AI, focusing on native features available now. You’ll discover how these AI-powered tools can enhance current operations, lay the groundwork for long-term strategic gains, and how easy it is to integrate AI with tools like Copilot—no programming required.
The Hype Around AI: How Does It Tangibly Help Your Business?
Since the emergence of ChatGPT in late 2022, the conversation around AI has intensified, with companies racing to hire AI talent and analysts predicting massive market growth. However, this excitement often leads to inflated expectations, where the technology is viewed as a catch-all solution. Eventually, we tend to hit a trough of disillusionment, where skepticism sets in, and the reality of AI's limitations becomes clear.
Stoneridge can help you navigate this hype cycle to effectively understand and utilize AI to enhance your operations.
Generative AI: Helping Employees Enhance Productivity
Generative AI represents a significant advancement in the field, utilizing large language models to generate unique responses in real-time. Let's explore the capabilities and limitations of generative AI to gain a clearer perspective on its role in your operations.
What is Generative AI?
Generative AI is a specific type of artificial intelligence that leverages large language models to analyze data and generate conversational responses. Unlike traditional AI, which often relies on pattern recognition, generative AI creates responses in real-time based on the input it receives. The fascinating aspect of this technology is that its creators, like OpenAI, do not know the exact answers it will produce when prompted. This ability to generate unique responses marks a significant leap in AI capabilities.
What are Generative AI’s limitations?
Despite its impressive capabilities, generative AI is not a replacement for human oversight in complex tasks. For example, while it can assist in coding or building integrations between applications, it cannot autonomously handle the entire process without human guidance. Generative AI also differs from traditional AI methods, such as demand planning, which rely on historical data to predict future outcomes. These earlier systems primarily functioned through pattern matching rather than the innovative generation of new content.
While generative AI offers powerful tools for applications like live translation, intelligent chatbots, and document drafting, it is essential to recognize that it works best when complemented by human input and well-thought-out AI prompts.
How Effective Prompts Shape AI Responses
The quality of the responses you receive from generative AI is heavily influenced by the prompts you provide. A well-crafted prompt acts as a roadmap for the AI, guiding it to deliver precise and relevant information. If you ask vague or overly broad questions, like "What car should I buy?" you may receive generalized suggestions that fail to meet your specific needs. In contrast, a detailed prompt—such as specifying your requirements for an electric vehicle with a certain range and color—allows the AI to generate tailored responses that are much more useful.
Learning to ask intelligent and refined questions is essential for anyone looking to harness the power of AI effectively. By refining your prompts iteratively, you can transform a basic query into a sophisticated request that elicits detailed, actionable insights. Emphasizing the importance of prompt quality not only enhances your interaction with AI but also empowers your team to leverage this technology for significant competitive advantages.
Native Features: How AI is Used in Manufacturing
For manufacturers using Dynamics 365 Finance and Supply Chain Management, many native AI features are already at your fingertips with Microsoft Copilot. These ready-to-use capabilities help automate key processes, enhance decision-making, and improve efficiency. Let’s explore some specific examples of AI integration within an ERP system that you can start using today to drive real results in your manufacturing operations.
AI Enablement within an ERP System
One of the most impactful AI-driven features in Dynamics 365 is Summary by Copilot, which leverages large language models to streamline how information is presented to users. Instead of searching through multiple screens or reports, Copilot gathers relevant data—like purchase orders, invoices, or batch details—and provides a concise, easy-to-read summary. This is especially useful for users monitoring vendors, customers, or production orders.
For instance, if you’ve just run an MRP and want to check the status of purchase orders, Copilot can summarize overdue invoices or pending items related to a vendor without navigating through multiple tabs. This saves time and provides actionable insights right when you need them.
AI-Enabled Purchase Order Management
Another powerful feature in Dynamics 365 is AI-enabled Purchase Order Management, which helps manufacturers and distributors track and manage purchase order changes with ease. Copilot analyzes data to identify changes in purchase orders—such as quantity or delivery date—and assesses their impact on production, safety stock, or transfers.
For example, if a purchase order is reduced or delayed, Copilot quickly highlights how this affects your safety stock or production orders. By pegging inventory to specific orders, this feature enables you to see the full picture, from the affected items to the production orders they are linked to. This streamlines your response, letting you manage supply chain adjustments more efficiently, ensuring that your operations remain on track despite any disruptions.
AI in Demand Planning
AI has been a tool in the toolbelt of Demand Planning for the past few years, but with Generative AI, it has become even more powerful. Microsoft is using its Dataverse platform to enhance this capability.
Comparing Forecast Models
In demand planning, Copilot enhances the ability to compare forecast models by analyzing data and identifying key changes between periods. For instance, when comparing two different inventory models, Copilot uses large language models to highlight significant shifts—such as changes in quantities or timelines—between months. Instead of calculating demand predictions, this AI feature focuses on simplifying complex data comparisons, helping you pinpoint discrepancies and fine-tune your production or ordering needs.'
You can even choose to display the information in a chart for export.
AI-Driven Automation with Copilot Studio
It’s also important to explore how Copilot Studio adds to this growing AI landscape in manufacturing. Beyond simplifying data summaries and demand planning, Copilot Studio enables you to build custom AI-driven workflows tailored to your specific business needs.
Building Custom AI Solutions with Copilot Studio
Copilot Studio allows manufacturers to create AI-enhanced processes without the need for coding. For example, you can automate order creation by integrating Copilot with Power Automate. For example, if you receive an order via email—Copilot can monitor your inbox, extract relevant details, and generate a sales order in Dynamics 365. This automation eliminates manual data entry, making operations faster and more accurate. Additionally, Copilot Studio allows you to customize alerts, such as setting notifications for account changes, so you can stay updated on critical data shifts in real-time. These tools simplify complex tasks, allowing your team to focus on higher-value work and drive greater efficiency across the board.
Getting Started with Copilot: A Simple Path to AI Integration
Are you ready to explore how Copilot can transform your business? The first step is easy—head to Copilot's official site and begin using its web-based search functionality at no cost. From there, you can unlock even more potential by deploying Copilot internally with Enterprise Search, enabling work-specific content searches within your organization.
Explore Copilot Across Microsoft Products
Copilot is embedded across Microsoft Dynamics 365, Sales, Service, Customer Insights and in ERP systems, offering tailored capabilities for different needs. Whether it's summarizing Teams meetings, automating CRM updates, or improving case routing, Copilot enhances efficiency with minimal setup. You'll also find Copilot integrated into the Power Platform, Dynamics 365, and more—offering powerful tools to streamline workflows across your business.
It's Time to Have the AI Conversation within Your Organization
The power of AI is significant, and manufacturers that fail to invest in it risk being left behind. While the impact of AI may not be immediately transformative, the long-term benefits are undeniable. Over the next decade, companies that incorporate AI into their manufacturing processes, operations, cost management, and workforce strategies will gain a competitive edge. It’s crucial to recognize the gravity of this technology even amidst the hype. Embracing AI is not just an option—it's a necessity for staying relevant and thriving in an increasingly digital landscape.
Stoneridge Can Help You Implement and Optimize AI-Powered Tools
Stoneridge experts can help you assess your current operations and pinpoint areas where using AI can enhance efficiency and drive innovation.
Get in touch with our team to learn more.
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