Manufacturers are executing planned generative AI projects more slowly than anticipated because of accuracy concerns, according to a report from Wednesday.
Due to worries about accuracy, manufacturers are implementing planned generative AI initiatives more slowly than expected, according to a study released on Wednesday by Lucidworks. 58% of manufacturing professionals who participated in the study, which polled over 2,500 leaders globally involved in AI technology decision-making, said they intended to boost their expenditure on AI by 2024. This is less than the 69% U.S. and 63% worldwide consensus.
93% of executives in general and 93% of executives in the industrial sector intend to raise AI spending in 2023.
Why it’s essential
Last week’s PitchBook data revealed a quarterly surge in venture capital funding in the United States, mostly due to substantial investments in artificial intelligence businesses. Investors are placing bets on companies in the hopes that the adoption of AI will generate large profits. According to a Lucidworks study, nearly 50% of manufacturers globally reported higher cost reductions this year as a result of implementing AI projects.
Although generative AI has numerous potential applications in the manufacturing sector, concerns about response accuracy and cost are making businesses more hesitant, according to Lucidworks CEO Mike Sinoway. Based on previously collected data used to train it, generative AI generates new material in response to inputs or cues. Hallucinations are, nevertheless, occasionally produced that are erroneous or senseless. A greater percentage of manufacturing respondents—44%—share this fear, despite the fact that 36% of all respondents voiced worries about response accuracy because of hallucinations.
Although just 20% of manufacturers’ planned AI projects have been realized in the last year, 55% of them believe that their level of AI adoption is comparable to that of their peers. 70% of manufacturing businesses chose more costly commercial AI models during the previous year. If more affordable and resourceful open-source solutions turn out to be just as effective, Lucidworks predicts that there may be a move toward them.
Manufacturers want to maximize AI’s value despite lower projected spending this year, despite their optimism about the technology’s cost benefits.
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