Manufacturers are investing more in artificial intelligence (AI) and automation, but they can only boost their business and attract the skilled talent they need if they rethink their workforce strategy.
When used effectively, technology can offer a real competitive advantage, but manufacturers must balance fast-moving innovation with transitioning often sceptical employees.
During the Raconteur roundtable ‘The workforce revolution – AI and the future of smart manufacturing’ sponsored by global enterprise software solution provider IFS, the panel discussed how manufacturers risk being left behind without an effective talent strategy.
Recent research by IFS found that 65% of manufacturers are still digital laggards, relying on outdated systems and manual tools, while fewer than 10% qualify as digital leaders.
It also found that manufacturers rank technological disruption (30%), cybersecurity risks (28%) and climate change (28%) as their biggest challenges.
The sector suffers from a stigma of being dirty, dark and dangerous
One dilemma for employers is that the sector suffers from a stigma of being dirty, dark and dangerous. Manufacturing must become a more attractive career option for people with the required technological skills or it will lose out to other industries.
Manufacturing’s technological transformation is already seeing the emergence of new roles such as specialist data scientists, AI engineers, robotic specialists and digital supply chain analysts.
Gareth Hall, supply chain development director at Emtelle, said manufacturing must attract people with the right AI talents not just today, but in five and 10 years’ time.
“Manufacturing is not always seen as an exciting industry to work in, but this will change as companies increase their investment in digital technologies,” he said. “More manufacturers need to take that first step on their AI journey with small pilot projects that can show a return on investment.”
Emtelle is a group built through acquisition, and Hall can cite a number of small scale AI projects that have demonstrated benefits. It has used the technology to connect its freight providers and track and better optimise its shipping routes, for instance, and implemented AI to improve procurement and cashflow.
Jimmy Gu, vice president of smart operations and innovation at Schneider Electric, emphasised the pressing need for manufacturers to rethink how they attract and develop talent in the age of AI.
This means offering a compelling career path, supported by a culture of continuous learning and purpose-driven work,” he said. “It is also essential that people see the personal relevance and value of AI – not just what it does, but what it means for their growth and contribution.”
Building trust and talent
Things are happening.
University students are regularly using AI manufacturing technology as part of the industry’s efforts to promote STEM careers. While some businesses are effectively re-branding themselves to become technology and solutions companies rather than being viewed as heavy industrial manufacturing operations.
“We are demonstrating to our employees how, despite being around for nearly 200 years, Schneider Electric continues to innovate with purpose, delivering meaningful impact to society through energy efficiency, sustainability and digital transformation,” said Gu. “We have an open-minded culture, and we want our employees to feel empowered as we transform our working model with digital adoption.”
Schneider Electric has also invested in pilot projects to address long-lasting operational challenges and enhance process efficiency. “Pilots are the most effective way to validate the impact of AI and build momentum for scaling and adoption. But success requires constructive feedback and active employee engagement to ensure seamless collaboration between people and AI capabilities.” Gu noted.
“The narrative is changing fast,” said Maggie Slowik, global industry director for manufacturing at IFS. “Manufacturing is no longer just about production – it’s about engineering new solutions to complex challenges “
“Our customers are using IFS’s remanufacturing capabilities to build circular operations that restore used products to like-new condition. With AI helping forecast returns and optimise reuse, this isn’t just about sustainability – it’s creating new roles, new skills and a fresh image for what a career in manufacturing can look like.
As manufacturers start building out their AI strategies, they need to bring people on to the journey
She agreed with Hall and Gu that running AI pilots is a good way to assess how best to embed the technology.
“AI is driving real gains in efficiency and productivity,” said Slowik. “But as manufacturers start building out their AI strategies, they need to bring people on to the journey. Co-creating pilots with employees is key. This is not just to build trust, but to make sure the solutions actually work on the ground.”
Tom Richter, head of enterprise campus edge manufacturing at Nokia, agreed AI must be about making workers’ current tasks easier.
“AI can help less technically savvy employees adapt to the digital tools being used in manufacturing automation,” he says. “It is also one way to plug the experience gap as older workers leave the workforce.”
He went on: “But AI needs to run reliably and manufacturers must bring it to those places where it is needed. This is where edge computing comes into play. Ultimately, AI is built on good data.”
The recruitment and retention of the best people to maximise the positive impact of smart manufacturing requires effective strategic leadership. It is therefore crucial the C-Suite understands the business implications of not adopting AI, especially if their competition is.
Uttam Gujrati, global head, business finance, strategy and transformation at Tata Technologies, said talent development must be treated as a driver for ROI, not as a cost.
“This could be retraining operators in digital troubleshooting to reduce downtime by, say, 15%,” he said. “You also need to pair technology adoption with parallel reskilling so the investment in equipment is not underutilised; and spend time on scenario modelling to reveal where advanced machines are operating below potential.”
He said any workforce training should encompass experiential learning, peer coaching and formal courses.
“There must be clear and transparent communication of the ‘why’ technological change is needed. By engaging frontline staff in the design and implementation, practical realities are considered, and employees feel empowered as co-creators of change,” said Gujrati. “Digital ethics must be embedded, while transparency within governance ensures employees trust how data is used. This protects morale and business reputation.”
AI can deliver many advantages, but manufacturers need a strategy and a vision of where they want to get to. It is therefore crucial the workforce is involved at every stage because AI will affect everyone.
Manufacturers are investing more in artificial intelligence (AI) and automation, but they can only boost their business and attract the skilled talent they need if they rethink their workforce strategy.
When used effectively, technology can offer a real competitive advantage, but manufacturers must balance fast-moving innovation with transitioning often sceptical employees.
During the Raconteur roundtable ‘The workforce revolution – AI and the future of smart manufacturing’ sponsored by global enterprise software solution provider IFS, the panel discussed how manufacturers risk being left behind without an effective talent strategy.