IIC Journal of Innovation 11th Edition | Page 29

Bridging the Artificial Intelligence Skills Gap in the Machine Manufacturing Industry addition, the safety and environmental regulations require strict governance. Drawing from the sector estimates of the PwC AI impact index, 2 PwC estimates that by 2023, individual industry sectors may increase their operating margins (i.e. how much of each euro of revenues is left over after both costs of goods sold and operating expenses are considered) by 60- 100%. The difference in the industry specific ‘AI boost curve’ shapes reflect the impact of two different factors: 1) the speed with which the industries are capable of adopting different AI applications and 2) the AI solution development to address the industry- specific business issues. In manufacturing, short-term benefits are expected to come mostly from process automation and productivity-based solutions. In the mid-term, more complex processes can be automated as intelligent automation offers considerable potential, and predictive maintenance and optimization applications further boost performance. Figure 1: AI growth boost varies by industry (source: PwC Finland: Uncovering AI in Finland) Productivity gains from AI and ML are not only dependent on the introduction of the technology itself. There is also a need to change the organization of work and increase employees’ knowledge. 2 PWC Finland: Uncovering AI in Finland, 2018. 3 e.g. O’Reilly 2018; Ernst & Young 2017 S KILLS G AP IN A RTIFICIAL I NTELLIGENCE A DOPTION Research 3 shows that the biggest barrier to AI and machine learning adoption is a lack of human skills. Most of the time, surveys refer to the technical skills needed to develop AI and ML solutions. However, the - 25 - June 2019