AI, artificial intelligence, is one of the hottest topics these days, and it’s hot across all industries. Chatbots are now a standard platform for all types of buying, selling, and customer service. As the technology becomes more advanced, it will become increasingly difficult to discern who are the humans and who are the robots at the other end of an email, text, or instant message.

AI-powered instant messaging is known as “generative” AI. Generative AI  can respond naturally to human conversation and serve as a tool for customer service and personalization of customer workflows. For example, companies and organizations can use AI-powered chatbots, voice bots, and virtual assistants that respond more accurately to customers for first-contact resolution. With generative AI, businesses can optimize processes with machine learning and AI applications across all elements of a business, including engineering, marketing, customer service, finance, and sales.

Lucidworks, a specialist in search and total AI solutions, recently released findings from its second annual Generative AI Global Benchmark Study, where there was a focus on the role AI is playing in manufacturing. The study gathered input from over 2,500 leaders involved in AI technology decision-making worldwide, and explores key areas of generative AI investment and organizations’ progress in adopting generative AI.

While initial excitement for AI was high, the actual implementation of planned initiatives has been sluggish across most industries, according to the report. In 2023, more than 40% of manufacturing leaders had a positive view of AI, with 93% planning to increase investments. In 2024, only 58% plan to increase their spending. Meanwhile, 30% worry that they’re falling behind their competition, with only one in five successfully deploying initiatives. Despite slow deployment, manufacturers reported above-average cost benefits (48%). 

Across the board, LucidWorks says, concerns around security, response accuracy, and costs have forced most businesses to slow down their planned initiatives and be more strategic about the balance between cost and benefit. Security worries have tripled, accuracy concerns have grown fivefold, and transparency issues have quadrupled since 2023.

Manufacturers have some of the most concerns around response accuracy (44%) and some of the least concerns around job displacement (3%) compared to other industries.  The 2024 Generative AI Global Benchmark Study also includes the following findings:

Investment Slowdown: Global AI spending plans are down sharply, with only 63% planning increases (vs. 93% last year). USA-based organizations remain above average, with 69% planning to increase AI spend.

Slow Progress: Delayed deployment and low success rates are commonplace, with only 25% of planned projects fully implemented. This lag is stalling anticipated ROI, with 42% of companies yet to see significant benefits from generative AI initiatives.

Spending Flattens: Across all organizations, 36% of leaders plan to keep spending flat, compared to only 6% in last year’s survey.

China’s Sharp Decline: Only 49% of Chinese leaders plan to increase AI spending in 2024, a massive drop from 100% in 2023.

Commercial LLMs Dominate: Nearly eight in 10 companies use commercial LLMs, and 21% have opted for open source only.

Competitive Concerns: A third of business leaders feel like they’re falling behind competitors despite almost everyone struggling to implement this new technology.

“While many manufacturers see the potential benefits of generative AI, challenges such as response accuracy and cost are causing them to take a more cautious approach. This is reflected in spending plans, with significantly fewer planning to increase AI investments compared to last year,” states Mike Sinoway, CEO, Lucidworks. “However, above-average reported cost benefits in 2024 could make them more bullish in the coming year. B2B companies and manufacturers have much to gain if they can balance cost and risk to improve efficiency, enhance the buyer experience, and reduce operational costs using generative AI.”

Labelexpo Keynote

Katie King

Like most advanced and up-and-coming manufacturing trends and innovations, the label industry is embracing AI.

Katie King is a published author and CEO of AI in Business. She is a keynote speaker at the Breakfast Networking session at the upcoming Labelexpo Americas 2024 in Rosemont, IL, just outside of Chicago. King sat down for a Q&A to offer a preview of what she will cover.

During the Breakfast Networking session at Labelexpo, you’ll be covering how artificial intelligence (AI) and automation will revolutionize the label and packaging industry. Could you summarize the broad themes and key takeaways you will be covering during your session?
KK: It’s such a pleasure and I cannot wait to visit Chicago. Artificial intelligence is without a doubt the defining technology of our generation, and my keynote will dispel the myths and arm delegates with the knowledge and practical tools they need to take full advantage of the whole family of AI, beyond GenAI.

The three broad themes are: firstly, how AI and automation are transforming the label and packaging industry. I’ll bring this to life with case studies and details about the tools.

Secondly, I’ll investigate the emerging ethical landscape, covering the latest legislation as well as crucial topics such as DE&I, ethics, privacy etc.

Thirdly, I’ll equip delegates with a practical scorecard and framework to kickstart their AI adoption.

Tell us about your experience as a consultant in AI and business transformation in other industries. Are there lessons that can be applied to the labels and packaging industry?
KK: I’m working across multiple sectors, from those that are heavily regulated, such as healthcare and financial services, to others as diverse as concrete, retail, and legal. There are lessons to be learned from every sector, ranging from the strategic focus of AI initiatives to the need to tread carefully and not inadvertently violate copyrights, for example.

How is AI different from “machine learning,” which has been with us for some time? What does ‘Intelligence’ in AI ‘look like’? How do we recognize it?
KK: AI imitates intelligent human behavior: I actually prefer the term “augmented intelligence.” Machine learning – a subset of AI – focuses on building systems capable of learning from data, identifying patterns, and making decisions with minimal human intervention. They improve over time as they are exposed to more data, honing their ability to make accurate predictions or decisions.

What are the key future trends in AI, and how do you see these trends affecting the label and packaging industry?
There are many, but these are the 10 core ones that I’ll be addressing in my Labelexpo keynote:

1. Advanced Automation and Robotics
2. Smart Manufacturing and Industry 4.0
3. AI-Enhanced Design and Prototyping
4. Personalization and Customization
5. Supply Chain Optimization
6. Sustainability and Eco-Friendly Solutions
7. Enhanced Quality Control
8. Augmented Reality (AR) and Virtual Reality (VR)
9. AI-Driven Market Insights
10. Cybersecurity and Data Privacy

How can label and packaging printers best take practical advantage of these technologies? Where do you start? Where is the low hanging fruit?
KK: I’ll be sharing my Scorecard for Success, which is a superb starting point. I’ll also share a six-month planning template and advice on an AI playbook. The low hanging fruit is a low-cost option to gaining insights that revolutionize marketing, sales, and HR business functions.

Katie King will present “Revolutionizing labels and packaging: The AI advantage” from 8:45-9:45 a.m. on September 11, 2024, at the Donald E. Stephens Convention Center in Rosemont, IL, USA.