The Impact of Artificial Intelligence on Profitability of Manufacturing Companies

AI in Manufacturing
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AI in Manufacturing
Title: The Impact of Artificial Intelligence on Profitability of Manufacturing Companies: Special Focus on Supply Chain Management
As the world continues to warm up to the idea of artificial intelligence (AI), some companies are already reaping the benefits of AI. However, with a special focus on manufacturing companies and their adoption of AI, this paper seeks to establish that companies that have already adopted AI to manage supply have increased their profitability levels compared to their counterparts. The transition to AI is already underway, and projections are made concerning the change or shift and the amount of money it will attract, save, and generate in the long run. In the past, companies that have been the first to transition to technological waves have ended up gaining over their counterparts and becoming more competitive. The same should be expected with regards to AI and its adoption in the manufacturing industry, especially in supply chain management. However, making a conclusion without a strong research foundation is bound to elicit doubt as one will simply be making allegations. Therefore, this paper is founded on research with a specific focus on the topic: Do manufacturing companies that use AI to manage supply make more profit than manufacturing companies that do not?
This research's expected or anticipated conclusion is that manufacturing companies adopting AI are indeed more profitable than those that do not. To establish the above, this paper will consider research articles and literature that are connected to the topic at hand. Therefore, the conclusions made will be based on the review of literature that will inform the theory or inference made. Keywords: Artificial Intelligence, Supply Chain Management, Profitability.
The Impact of Artificial Intelligence on Profitability of Manufacturing Companies: Special Focus on Supply Chain Management
Broad Issues and Current Conditions
The buzz around AI continues to influence the decisions of many companies around the world. Some big companies have invested billions of dollars in AI as they seek to tap into AI's supposed or projected benefits. However, even as many companies as buying into the buzz, there is a need to establish the legitimacy of these claims and determine the value that AI brings to supply chain management. The rhetoric behind AI investment in supply chain management is that it helps enhance productivity, lower operational costs, ensure quality in the process, and enhance planning processes. The above statement is echoed by many researchers who believe that AI does indeed enhance efficiency and improves supply chain management. Companies are currently working diligently as they seek to tap into the highlighted benefits of AI in the the supply chain. Billions of dollars are spent every year as more companies are trying to align themselves with the changes taking place in supply chain management. Projections regarding the supply chain market and AI are that investment is expected to reach $21.8 billion by 2027 (Meticulous Research, 2020). The above growth will translate to 45.3%, and considering the number of companies looking to enter the field, it is highl...