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Generative AI in The Manufacturing Process Theoretical Considerations

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Generative AI in The Manufacturing Process Theoretical Considerations

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ahmadbinsadiq2
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© © All Rights Reserved
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Engineering Management in Production and Services

Volume 15 • Issue 4 • 2023

received: 15 March 2023


accepted: 20 September 2023

Generative AI in the manufacturing pages: 76-89

process: theoretical considerations


© 2023 D. C. Doanh et. al.
This work is published under the Creative
Commons BY-NC-ND 4.0 License.

Joanna Ejdys
Bialystok University
Doung Cong Doanh of Technology, Poland
ORCID 0000-0002-5132-166X
Zdenek Dufek Corresponding author:

Joanna Ejdys e-mail: [email protected]

Romualdas Ginevičius Doung Cong Doanh


National Economics
Pawel Korzynski University, Hanoi, Vietnam
ORCID 0000-0003-4431-9761
Grzegorz Mazurek Zdenek Dufek
Joanna Paliszkiewicz Brno University of Technology, Czechia
ORCID 0000-0003-4616-4142
Krzysztof Wach
Romualdas Ginevičius
Ewa Ziemba Mykolas Romeris University, Lithuania
ORCID 0000-0003-2067-4398

Pawel Korzynski
Kozminski University, Poland
ABSTRACT ORCID 0000-0002-6457-4965
The paper aims to identify how digital transformation and Generative Artificial
Intelligence (GAI), in particular, affect the manufacturing processes. Several dimensions Grzegorz Mazurek
of the Industry 4.0 field have been considered, such as the design of new products, Kozminski University, Poland
workforce and skill optimisation, enhancing quality control, predictive maintenance, ORCID 0000-0002-0047-6944
demand forecasting, and marketing strategy. The paper adopts qualitative research
based on a critical review approach. It provides evidence of the GAI technology support Joanna Paliszkiewicz
in the mentioned areas. Appropriate use of emerging technology allows managers to Warsaw University
transform manufacturing by optimising processes, improving product design, of Life Sciences, Poland
enhancing quality control, and contributing to overall efficiency and innovation in the ORCID 0000-0002-6250-0583
industry. Simultaneously, GAI technologies facilitate predictive analytics to forecast
Krzysztof Wach
and anticipate future demand, quality issues, and potential risks, improve a marketing
Krakow University of Economics, Poland
strategy and identify market trends.
ORCID 0000-0001-7542-2863

KEY WORDS Ewa Ziemba


Generative AI, ChatGPT, Industry 4.0, technology, manufacturing processes
University of Economics in Katowice,
10.2478/emj-2023-0029 Poland
ORCID 0000-0002-1084-7497

Introduction transformation, defined as the integration and adop-


tion of digital technologies, processes, and strategies
across various aspects of an organisation, is the pri-
mary challenge of the third decade of the twenty-first
The advent of digital transformation has signifi-
century, particularly in the post-pandemic era
cantly impacted the landscape of modern entrepre-
(Głodowska et al., 2023), multidimensionally impact-
neurship and current business. Undoubtedly, digital
ing the manufacturing industry defined nowadays as
Doanh, D. C., Dufek, Z., Ejdys, J., Ginevičius, R., Korzyński, P., Mazurek, G., Paliszkiewicz, J., Wach, K., & Ziemba, E.
(2023). Generative AI in the manufacturing process: theoretical considerations. Engineering Management in Production and
Services, 15(4), 76-89. doi: 10.2478/emj-2023-0029

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Engineering Management in Production and Services
Volume 15 • Issue 4 • 2023

Industry 4.0 (Nosalska et al., 2018). The ongoing tive literature. Many integrative literature reviews are
changes in modern business management are caused designed to tackle subjects that have matured or are
by the use of several disruptive technologies, includ- in the early stages of emergence. In the case of emerg-
ing blockchain, AR, VR, social media, mobile, and IoT ing topics, the primary aim is to establish initial or
(Mazurek, 2018). In recent months, it has gained preliminary concepts and theoretical frameworks
importance because of the Generative Artificial Intel- rather than simply revisiting existing models (Snyder,
ligence (GAI) concept in various managerial aspects 2019).
and dimensions with its business and manufacturing The main aim of this critical review was to sys-
advantages (Korzynski et al., 2023) and dark sides tematically evaluate, critique, and synthesise the body
(Wach et al., 2023). of literature relevant to GAI application in the manu-
This article presents the results of a literature facturing process. This comprehensive analysis was
review approach based on the analysis of publications. conducted in a manner designed to facilitate the
The critical review primarily aimed to methodically emergence of novel theoretical frameworks and per-
assess, analyse, and integrate the existing body of lit- spectives within the field.
erature on applying GAI in the manufacturing process The integrative review method led to the
to foster the development of innovative theoretical advancement of knowledge and the development of
frameworks and perspectives within the field. Differ- theoretical frameworks rather than merely providing
ent areas of manufacturing processes have been con- an overview or description of previous research (Sny-
sidered, such as new product design, innovation der, 2019).
management, human resources, quality control, pre- The authors’ intention was to provide an inte-
dictive maintenance, forecasting and marketing strat- grated, synthesised overview of the current state of
egy creation and implementation. The uniqueness of knowledge and research insights, existing gaps, and
this publication lies in the review execution and litera- future research directions in the field of AI applica-
ture description on the field of retrofitting and its tion in manufacturing processes (Palmatier et al.,
classification. Additionally, it involves the extraction 2018). Alongside the normative recommendations,
of the primary trends presented in the literature. this review provides summaries and suggestions that
This publication answers the following questions: could provide valuable managerial insights (Mazum-
What is the current development stage of theory dar et al., 2005) into the future application of AI to
linked with the GAI application in the manufacturing manufacturing processes.
process? What are the most important managerial Authors adopted domain-based review papers,
insights concerning the application of AI to manufac- which allowed for reviewing, synthesising, and
turing processes? What AI implications can be found extending a body of literature in the substantive
in the literature on several manufacturing and product domain, i.e., AI application in the manufacturing
engineering dimensions? process. The manufacturing process structure refers
The article consists of four parts. The introduc- to the organisation and sequence of activities involved
tion includes a description of the techniques and in the production of goods or products. It outlines the
technologies connected to AI in manufacturing pro- steps and stages required to transform raw materials
cesses. The second part presents the research methods. or components into finished products. The specific
The third part describes the research results, focusing structure of a manufacturing process can vary widely
on such dimensions as new product design, innova- depending on the industry, product complexity, and
tion management, human resources, quality control, technology used. Considering the complexity and
predictive maintenance, forecasting and marketing comprehensiveness of manufacturing processes, the
strategy. The fourth part summarises the article. conducted literature studies were focused on the fol-
lowing processes supporting the manufacturing pro-
cess: the design of new products, workforce and skill
1. Methodology optimisation, enhancement of quality control, pre-
dictive maintenance, demand forecasting, and mar-
keting strategy.
An integrative or critical review approach was The application of the critical literature review
employed to achieve the research objective. The method aimed to answer the following research ques-
applied method provided a framework for under- tions:
standing and appreciating the complexities of narra-

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Volume 15 • Issue 4 • 2023

• How can AI adaptation help manufacturers to as a crucial tool for exploring and optimising design
create products that are more efficient, effective, spaces (Di Vaio et al., 2020). This study focuses on the
and safe? possible advantages of utilising GAI to design novel
• How can AI adaptation help analyse and predict goods, with a particular emphasis on developing
the necessary skills required for manufacturing solutions characterised by enhanced efficiency, effec-
processes? tiveness, and safety. GAI can explore new design
• How can GAI be used to identify defects in prod- possibilities and generate optimised designs based on
ucts and processes? user-defined parameters. Designers can input user-
• How can GAI be used as a proactive approach to defined parameters into GAI systems, guiding the AI
maintenance to predict when equipment and to generate designs that meet specific criteria. This
machinery are likely to fail or require mainte- user-centric approach ensures the final product’s
nance? alignment with the intended goals and requirements.
• How can AI be used to analyse market trends, This can help manufacturers to create more efficient,
consumer behaviour, and sales data to predict effective, and safe products.
demand for manufactured goods? GAI can evaluate extensive datasets of preexist-
• How can AI be used to optimise marketing strat- ing designs, acquiring knowledge of patterns and
egies and improve the timing of product releases, correlations among different design components.
promotional campaigns, or sales events? This allows it to investigate vast design possibilities
that may be inconvenient or time-consuming for
human designers to navigate. GAI functions by lever-
2. Literature review and aging machine learning concepts, allowing the system
theory development to acquire knowledge from extensive datasets and
produce novel outputs according to predetermined
criteria (Plantec et al., 2023). Within the realm of
2.1. Application of Generative AI in the product design, this technology allows designers and
design of new products manufacturers to swiftly and effectively explore
a wide range of design possibilities (Iansiti & Lakhani,
This research study investigates the GAI’s possi- 2020). GAI algorithms can develop designs that meet
ble transformative effects within the product design or surpass specified requirements by incorporating
domain. GAI can be harnessed for designing new user-defined characteristics such as material quali-
products because it can explore vast design spaces, ties, weight limitations, and performance standards
generate diverse and innovative solutions, and opti- (Plantec et al., 2023). Through an iterative process,
mise designs based on predefined parameters (Kwong these algorithms may generate designs that follow the
et al., 2016). GAI is applied to explore innovative given specifications (Lei et al., 2022).
design possibilities and generate optimum product In conclusion, GAI presents a groundbreaking
designs, considering user-defined parameters (Cappa opportunity for revolutionising product design pro-
et al., 2021). This novel GAI methodology has the cesses (Hu et al., 2023). The utilisation of GAI holds
potential to transform manufacturing procedures by immense potential for transforming the processes
facilitating the development of goods that possess involved in product design. GAI, due to its capacity to
enhanced efficiency, effectiveness, and safety, espe- navigate extensive design spaces and swiftly produce
cially in the post-pandemic world (Villar et al., 2023). optimum solutions, is positioned as a pivotal facilita-
In recent years, the emergence of GAI has pre- tor for innovation in the manufacturing sector (Lei et
sented novel opportunities for innovation across sev- al., 2022). The utilisation of this technology serves as
eral industries (Cappa et al., 2021), such as the a demonstration of its capacity to generate products
automotive industry (e.g., Tesla). Another example with enhanced efficiency, efficacy, and safety. The
could be bioengineering. In recent times, additive ongoing progress of technology has led to the poten-
manufacturing (AM) has been widely used to create tial incorporation of GAI in the field of product
things specifically designed for human use, including design, which can revolutionise several industries
orthoses, prostheses, therapeutic helmets, finger and facilitate the creation of innovative products that
splints, and other customised devices (Liu et al., surpass existing limitations (Wang & Wu, 2024). As
2022). Product design is a domain that shows signifi- technology continues to advance, the integration of
cant potential for application, where GAI might serve GAI in product design holds the promise of reshap-

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ing industries and driving the development of prod- delineation of tasks and roles become increasingly
ucts that push the boundaries of what is currently vital. Automated and semi-automated systems in
achievable. manufacturing lines coexist with manual processes,
highlighting the significance of clear and well-defined
2.2. GAI as a facilitator of the HRM position descriptions (Cha et al., 2023). By harness-
process in manufacturing ing GAI to analyse and standardise position descrip-
tions and tasks, organisations ensure clarity and
In the era of Industry 4.0, the fusion of advanced uniformity in role expectations and responsibilities,
manufacturing processes and cutting-edge digital synchronising manual and automated processes
technologies, such as general artificial intelligence, effectively.
heralds unparalleled innovations in human resource Additionally, in performance management
management (HRM) (Sigov et al., 2022; Rymarczyk, within the manufacturing milieu, adherence to spe-
2021). Looking ahead to Industry 5.0, where human cific production norms is pivotal. GAI may play a
collaboration with machines is expected to be more fundamental role here by continually analysing
harmonious and optimised (Leng et al., 2022), the employee activities and outputs. By monitoring
role of GAI becomes even more pivotal. Industry 5.0 adherence to production norms and standards, GAI
focuses on the coalescence of human touch with provides critical insights and data that enable both
technological autonomy, aiming to create a balanced managers and employees to refine and optimise per-
ecosystem where human creativity and machine effi- formance (Khang et al., 2023). This continuous over-
ciency coexist and complement each other (Adel, sight and analysis ensure that any deviations from the
2022). established norms are rapidly identified and rectified,
In its current form, GAI, such as ChatGPT, can contributing to the streamlined and effective func-
be incorporated into work settings as an element of a tioning of the manufacturing operations.
custom network of applications (OpenAI, 2023). In the sphere of smart factories, the deployment
Therefore, the potential utility of GAI, exemplified by of GAI furthers the enhancement of performance
technologies like ChatGPT, extends beyond just text management. The centralised data hubs in smart fac-
generation (Korzynski, Kozminski, & Baczynska, tories, which streamline the rapid exchange of infor-
2023). Its diverse functionalities can seamlessly inte- mation, are leveraged by GAI to meticulously monitor
grate with various HRM systems, working collabora- and analyse employee performance and operations
tively to enhance and streamline numerous (Haponik, 2022). This integration facilitates instanta-
HR-related processes in the manufacturing sector. neous feedback and insights, enabling immediate
The integration of GAI with HRM systems can facili- corrective actions and ensuring the consistent align-
tate the comprehensive analysis and synchronisation ment of operations with established production
of various elements, such as workforce planning norms and standards.
(Koole & Li, 2023), scheduling shifts (Dworski, 2023),
position description analysis (Chang & Ke, 2023) and 2.3. Enhance quality control process by
performance management (Budhwar et al., 2023). AI
In reference to workforce planning and schedul-
ing, constant manufacturing operations demand Quality control, defined as a systematic process
accurate planning (Heuser, Letmathe, & Schinner, involving checks, testing, verification, and response,
2022), and GAI can synchronise various elements, ensures that product features and process conditions
such as production demands, employee availability, align with design standards and internal and external
and skill sets, to formulate optimised shift schedules. specifications (Hull, 2011). It entails examining prod-
This application ensures that every shift is adequately ucts at various stages of the production process to
staffed with individuals possessing the right skills, guarantee they meet specific criteria, such as size,
enhancing the alignment with production targets weight, colour, or other requirements (Nadira, 2023).
while maintaining compliance with labour regula- Despite being a critical aspect of modern manufac-
tions. turing, it presents significant challenges and demands
Furthermore, GAI holds the key to revolutionis- substantial time. As production enterprises expand
ing position description analysis and task standardi- and the demand for higher product quality rises,
sation. Considering the advancements brought about industrial processes have become increasingly intri-
by smart factories, a precise understanding and cate. Consequently, the likelihood of production sys-

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Volume 15 • Issue 4 • 2023

tem failures and the associated hazards related to ing requirements, preparing and conducting tests,
product quality have escalated. When faults occur in and reporting defects. However, this approach is
the production process, specific product quality prone to human errors, is time-consuming, and
indicators can fluctuate, leading to subpar quality (Xu encounters challenges related to scalability in com-
et al., 2024). plex systems. GAI revolutionises quality control by
The rapid advancement of information technolo- automating these tasks and ensuring comprehensive
gies makes it crucial to utilise them for monitoring test coverage, overcoming these challenges. Using
and achieving stable, precise control over industrial machine learning algorithms trained on extensive
processes and product quality (Xu et al., 2024). To datasets and continuous learning from previous
address challenges in industrial process monitoring, errors, thus eliminating the need for human supervi-
fault diagnosis, and product quality control, experts sion and ensuring significant time and resource sav-
and scholars have proposed the application of AI ings, GAI (Nadira, 2023; Vaddi & Khan, 2023):
(Hartung et al., 2022; Zeng et al., 2022; Xu et al., • comprehends requirements and autonomously
2024), including GAI as evidenced in recent studies generates test cases;
(Narasimhan, 2023; Raja, 2023; Wang et al., 2019). • autonomously generates test data;
The utilisation of GAI holds the potential to enhance • automates test execution, minimising errors and
quality control processes by effectively detecting and time consumption;
identifying defects and anomalies in various prod- • enhances test generation and execution, leading
ucts. GAI can create virtual models of products, ena- to quicker testing cycles, improved precision, and
bling simulation of the manufacturing process. This elevated product quality;
aids in the early detection and prevention of potential • generates clear, concise, and actionable reports
defects and anomalies in actual products (Raja, 2023). after executing the test cases and
GAI can revolutionise manufacturing quality • predicts potential issues and forecasts and likely
control in several ways, such as (Raja, 2023): points to failures before they occur, enabling
• Defect identification. GAI can rapidly identify proactive and real-time addressing of problems.
product defects by analysing images or data from The overall comparison between the traditional
manufacturing processes. This capability enables quality control process and the GAI-based quality
manufacturers to detect defects in real-time dur- control process is presented in Table 1.
ing the manufacturing process, ensuring that Some examples of how GAI is being used in the
products meet quality standards before they are manufacturing quality control process include (Raja,
delivered to customers. 2023; Srivastava, 2023; Wlodarczyk, 2023):
• Defect prediction. GAI can anticipate and iden- • Intel: GAI is used to detect imperfections in
tify potential product defects by leveraging his- computer chips. By analysing images of computer
torical defect data. With this capability, chips, GAI identifies defects that are too minus-
manufacturers can then pinpoint vulnerable cule for human observation, significantly
areas and take proactive measures to prevent enhancing Intel’s chip quality.
these issues. • Bosch: GAI is used to forecast defects in automo-
• Automated quality control. GAI can automate tive components. The company uses GAI to
quality control tasks by analysing more data examine historical defect data, predicting which
about each production process and product, parts are more likely to be faulty. This predictive
especially in defect inspection. It enhances accu- approach has significantly reduced the number of
racy and efficiency in quality control processes defective automotive parts shipped to customers.
and boosts worker productivity, allowing them to • BMW: GAI is used to predict defects in car parts.
concentrate on other essential tasks. AI employs computer vision to analyse images or
• Personalised quality control. GAI facilitates the videos of components and undergoes training to
personalisation of quality control processes by differentiate between defective and non-defective
developing tailored inspection plans for different car parts. Once trained, AI can inspect new car
product types. It guarantees that each product parts in real-time, promptly identifying any
undergoes scrutiny at a suitable level, ensuring defects and detecting deviations from the stand-
compliance with the necessary quality standards. ard, ensuring all required parts are without
In the conventional quality control process, defects and correctly mounted in their designated
humans are responsible for tasks such as understand- places.

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Tab. 1. Traditional and GAI-based quality control process

Aspects Traditional Quality Control Process Generative AI-Based Quality Control Process
Tasks of the quality control process
Manual creation of test cases based on various Automatic generation of diverse test cases based
manufacturing documents and human experiences. on provided scenarios and AI algorithms. Saving time,
Test case generation
Limited by human capacity and understanding, time- improving the breadth, depth, and scalability
consuming of testing
Manual creation of test data or generation of test data Automatic generation of diverse, high-volume, and
using predefined templates. May lack diversity and realistic test data. Saving time, improving the breadth,
Test data generation
volume, time-consuming, and overlook certain real- depth and scalability of testing
world scenarios
Manual testing by human testers. Requirement of Automatic testing. Automatically generating clear,
human intervention to interpret results and generate
concise, and actionable reports after executing the
Test execution summary reports. Time-consuming, limited by human test cases. Reducing human involvement, speeding up
capacity and understanding the test process by quickly generating test cases and
data
Spotting patterns and anomalies depends largely on Spotting patterns and anomalies more consistently,
the skill and experience of human testers. Some possibly finding defects that human testers might
Defect identification
defects might be missed. Reactive approach with miss. Proactive identification of errors and prevention
errors being detected post-production
Manually leveraging and analysing historical defect Automatic leveraging and analysing historical defect
Defect prediction data. Some defects might be missed and lacking data. Pinpointing vulnerable areas and implementing
proactive measures to prevent these issues proactive measures to prevent these issues
Features of quality control process
Human bias may result in overlooking certain real- AI models can more accurately mimic real-world
Realism
world scenarios scenarios, leading to more effective testing
Limited scalability, challenging for complex systems. Scalable and capable of handling intricate processes.
Scaling up requires additional human resources and AI models can easily handle large data volumes and
Scalability
time more complex scenarios, making them highly
scalable
Time-consuming and resource-intensive. Manual Efficient use of time and resources. AI models
Time and resource ef-
creation of test case and data, the test execution and efficiently generate test cases and data, automating
ficiency
analysis of defects the execution of tests and analysis of defects
Learning from past Limited ability to learn from historical data. Limited by Continuous learning, improving over time
errors human capacity and understanding, time-consuming
High dependency on human supervision. Requirement Reduced need for human interventions. AI models
Human oversight of regular manual updates and adjustments based on can be retrained and adapted to new or updated
changes in requirements requirements

Source: elaborated by the authors based on Narasimhan (2023), Raja (2023) and Vaddi and Khan (2023).

• Siemens: GAI is used to automate wind turbine manufacturing quality control, making it swifter,
quality control. This technology is used by Sie- more effective, and exceptionally precise. Using the
mens to customise inspection plans for various analysis of production data and the application of
wind turbines, streamlining the quality control machine learning algorithms, it can pinpoint poten-
process and enhancing efficiency in wind turbine tial quality problems and defects.
production. This proactive approach empowers manufactur-
• Georgia-Pacific: GAI is used to enhance the qual- ers to address issues in real time before they escalate,
ity of paper production. AI prevents paper tear- ensuring smoother production processes. Neverthe-
ing during production by predicting the optimal less, the effectiveness of AI in quality control directly
speed for converting lines. depends on the quality and diversity of data it is
Overall, the integration of GAI into the quality trained on, as well as test algorithms. Test data and
control process opens new possibilities for innovative algorithms are important in delivering accurate and
transformation and efficiency enhancement of the consistent results and deriving edge-case scenarios or
quality control process. GAI promises to reshape exceptions.

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2.4. Application of artificial decisions to address issues pre-emptively (Bahrudin


intelligence in the context Hrnjica, Selver Softic, 2020).
of predictive maintenance To overcome the limitations of relying solely on
in production processes human inspection, Shin et al. (2021) employed
machine vision approaches to create AI-based solu-
Predictive Maintenance (PdM) is a proactive tions (AI-assisted approach) for image-based fault
maintenance strategy that uses data, analytics, and diagnoses. The authors examined the impact of AI
machine learning to predict when equipment or based on deep learning algorithm assistance on the
machinery will likely fail, allowing for timely mainte- performance and perception of human inspectors,
nance interventions. The main goal of PdM is to considering their task proficiency. The conducted
anticipate potential issues and perform maintenance studies confirmed that implementing AI to support
activities just before they are needed, avoiding unex- inspectors significantly improved results (specificity,
pected breakdowns and minimising downtime. There sensitivity, and time efficiency), particularly when
is strong evidence that using AI-based solutions inspectors were not experts in their field.
improves the maintenance process in companies. AI The results demonstrated that AI can yield sig-
can be applied to various stages of PdM, encompass- nificant benefits in scenarios with limited human
ing Data Collection, Data Preprocessing, Feature resources and time-consuming expert training. The
Selection, Model Training, Model Evaluation, authors have posited the hypothesis that, even in the
Deployment, Monitoring, Alerts and Notifications, long-term perspective, it is improbable to fully auto-
Maintenance Intervention and Feedback Loop. Arti- mate the stage of reading and diagnosing images. This
ficial intelligence in the context of improving mainte- limitation stems from the inherent nature of artificial
nance processes is applicable when maintenance intelligence algorithms, which can only recognise
processes are carried out by humans (in the form of faults they have thoroughly mastered based on train-
inspections) (Shin et al., 2021) and when they are ing data. In situations involving novel issues, human
automated. involvement remains imperative for the early detec-
Cost savings are among the primary benefits of tion of potentially catastrophic cases (Shin et al.,
PdM (Shin et al., 2021), resulting from improving 2021).
productivity (e.g., downtime reduction) (Arena et al., The Digital Twin, which can deliver additional
2022); reducing environmental negative impact (e.g., services by leveraging physical simulation and AI
waste reduction) (Allahloh et al., 2023), improving algorithms, is another example of applying AI in
safety conditions (Katreddi et al., 2022) and reliability maintenance process improvement. These services
(Achouch et al., 2022). include such functions as fault diagnosis, trouble-
The literature provides numerous examples of shooting, predicting the remaining useful life, and
studies indicating the application of AI for mainte- facilitating maintenance activities (Rossini et al.,
nance operations in various industries and sectors: 2021). Application of DT solutions enabled the real-
the renewable energy industry (Shin et al., 2021), time creation and modification of workflows essential
manufacturing and processing of wood products for fault diagnosis and predictive maintenance. This
(Rossini et al., 2021), the power generation industry involves the dynamic addition, removal, or replace-
(Allahloh et al., 2023), the automotive sector (The- ment of entities to accurately represent the status of
issler et al., 2021; Arena et al., 2022; Katreddi et al., components within the system.
2022) and particular industrial infrastructure Allahloh et al. (2023) showcased the viability of
(machinery) (Pandey et al., 2023). markedly improving fuel efficiency and anticipating
Based on the experiment being conducted by maintenance needs. Our discoveries indicate that
Bahrudin Hrnjica and Selver Softic (2020), the inte- deploying IIoT and AI solutions opens avenues for
gration of explainable AI, embodied in a dependable substantial fuel preservation, heightened perfor-
prediction model and visual representations, can mance through predictive maintenance, and practical
effectively assist in mitigating avoidable costs linked strategies for industries to optimise processes and
to unscheduled downtime resulting from machine enhance efficiency in internal combustion genset
errors or tool failures. This means that by having an operations. The IoT platform application allows for
AI system that predicts potential issues and provides identifying potential issues before they become criti-
understandable explanations and visual insights into cal problems, significantly reducing downtime and
those predictions, businesses can make informed maintenance costs (Allahloh et al., 2023).

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The application of artificial intelligence in the influencers and consumers. This insight prompts the
maintenance field can predict potential system fail- retailer to adjust their production plans to meet the
ures based on specific characteristics or system set- anticipated demand for that style. Moreover, AI can
tings (input variables) and may prevent future failures scan news articles, blog posts, and industry reports to
and minimise downtime. identify shifts in consumer behaviour, economic
indicators, and technological advancements that
2.5. Artificial intelligence application could impact market trends. AI can provide insights
for demand forecasting into upcoming trends by analysing the frequency and
context of certain keywords and phrases. AI-powered
Forecasting demand plays a vital role in contem- web scraping tools can also extract data from e-com-
porary business operations, allowing manufacturers merce platforms, competitor websites, and market-
to optimise their production processes, effectively places to track product prices, availability, and
manage inventory levels, and efficiently fulfil cus- customer reviews (Dwivedi et al., 2023). This data can
tomer requirements (Ghosh, 2022; Tadayonrad be analysed to detect pricing trends, product popular-
& Ndiaye, 2023; Viverit et al., 2023). The emergence ity, and consumer feedback. An online retailer, for
of artificial intelligence (AI) has provided businesses instance, uses AI-driven web scraping to track com-
with a potent tool for examining intricate datasets petitors’ pricing strategies and identifies that a certain
and making more precise prognoses regarding future product is consistently priced higher than similar
demand (Kumar et al., 2023). This part elucidates the offerings. This insight helps the retailer adjust their
utilisation of AI for analysing market trends, con- pricing strategy to remain competitive.
sumer behaviours, and sales information, ultimately The utilisation of AI-driven analysis of consumer
heightening the accuracy of demand forecasting and behaviour grants manufacturers an unparalleled
contributing to improved decision-making within comprehension of their intended audience (Sohrab-
manufacturing workflows. pour et al., 2021; Yaiprasert & Hidayanto, 2023). AI
In the rapidly changing and dynamic landscape of can create detailed customer profiles by collecting
contemporary business, grasping market trends is and interpreting data from e-commerce platforms,
imperative to maintain a competitive edge (Li et al., loyalty programmes, and even IoT devices (Zhu et al.,
2022; Mathur et al., 2023). AI algorithms can analyse 2022). Machine learning algorithms can detect pat-
extensive quantities of information from diverse ori- terns within purchasing habits, preferences, and fac-
gins, including social media, online forums, news tors that prompt buying decisions. AI can potentially
articles, and industry reports. This enables them to augment the precision of demand forecasting by
detect emerging trends and changes in consumer identifying connections between external variables
preferences (Liyanage et al., 2022). AI can extract valu- like seasonality, economic indicators, cultural occur-
able understandings regarding customer conversa- rences, and consumer purchasing trends. This, in
tions, the rising popularity of specific products, and turn, empowers manufacturers to customise their
the influential trends steering purchasing choices by production and marketing approaches to synchronise
evaluating sentiment analysis, keyword frequency, with these discernments, guaranteeing that the
and topic modelling. These insights equip manufac- appropriate products are accessible at the right
turers with the information needed to adapt their moment and in suitable quantities (Vaid et al., 2023).
production strategies and harmonise their offerings AI-powered sentiment analysis can analyse customer
with present and forthcoming market requirements reviews, social media interactions, and online con-
(Li et al., 2022). Specifically, AI algorithms can sift versations to gauge consumer sentiment towards
through vast volumes of data sourced from social products and brands (Hyun Baek & Kim, 2023). This
media platforms, pinpointing nascent trends, senti- insight provides businesses with valuable feedback
ments, and dialogues about particular products or and helps them address customer concerns. For
sectors. Applying natural language processing (NLP) instance, restaurant chains utilise AI to analyse social
techniques facilitates sentiment analysis, topic model- media posts and reviews. It is discovered that custom-
ling, and keyword extraction, thereby facilitating an ers consistently praise their food quality but express
understanding of consumer viewpoints and inclina- dissatisfaction with long wait times. The restaurant
tions. For example, a fashion retailer uses AI to analyse management addresses this issue by optimising their
social media conversations and identifies that a par- service speed, leading to improved customer satisfac-
ticular clothing style is gaining popularity among tion.

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Sales data serves as a goldmine of information for swiftly to market changes and consumer behaviours.
demand forecasting (Ma et al., 2016). AI-driven ana- However, ethical considerations, data privacy con-
lytics can construct predictive models by analysing cerns, and the need for transparent AI decision-
historical sales data, considering such elements as making processes will remain important
product life cycle, promotional endeavours, and geo- considerations in integrating AI into demand fore-
graphical discrepancies (Abolghasemi et al., 2020). casting practices.
These models can forecast demand with remarkable Integrating AI into demand forecasting processes
precision, aiding manufacturers in making informed offers manufacturers a competitive edge by providing
decisions about production volumes and inventory insights into market trends, consumer behaviour, and
management. Machine learning algorithms, such as sales data. Manufacturers can make informed deci-
time-series analysis, regression, and neural networks, sions, optimise production, and enhance customer
can be trained on historical sales data to identify pat- satisfaction by leveraging AI algorithms to analyse
terns and trends, enabling accurate predictions for these key factors. As AI technology continues to
future demand (Liu et al., 2023). AI can continually advance, its role in demand forecasting is poised to
learn from prior forecasting inaccuracies and modify become increasingly vital for businesses seeking to
its models accordingly, resulting in progressively thrive in a rapidly changing marketplace.
enhanced accuracy over time. These adaptable mod-
els aid businesses in honing their demand forecasts as 2.6. Leveraging artificial intelligence
fresh sales data becomes accessible. For example, an for enhanced marketing strategies
automobile manufacturer uses AI to forecast demand
for different car models. Over time, the AI system The adoption of GAI for marketing is rapidly
learns that demand for SUVs is influenced by fluctu- growing (Kshetri et al., 2023; De Mauro, Sestino, &
ating fuel prices and economic indicators. The manu- Bacconi, 2022). By March 2023, 73 % of US businesses
facturer can make more accurate predictions and had already incorporated GAI tools, such as chatbots,
optimise production plans. Consequently, incorpo- into their marketing efforts (Dencheva, 2023).
rating AI into harnessing sales data for demand pre- Optimising marketing strategies in the ever-
diction allows businesses to make data-driven evolving manufacturing landscape is a crucial success
decisions, optimise production, and minimise the facet. With the integration of GAI in manufacturing,
risk of overstocking or stockouts. By analysing his- companies gain a powerful tool for achieving more
torical sales patterns and their relationships with efficient and data-driven marketing approaches. The
external factors, AI empowers businesses to anticipate application of GAI in this context goes far beyond
and meet consumer demand more effectively. traditional methods, enabling manufacturers to make
While AI offers immense potential for revolu- smarter decisions regarding the timing of product
tionising demand forecasting, it is important to releases, promotional campaigns, and sales events.
acknowledge its benefits and challenges. AI-driven One of the most remarkable aspects of utilising
demand forecasting can lead to reduced inventory AI in marketing strategy is the capacity to harness
costs, minimised stockouts, optimised production predictive analytics. This technology allows manufac-
schedules, and improved customer satisfaction turers to forecast market trends and consumer behav-
(Njomane & Telukdarie, 2022; Soori et al., 2023). iour with a high degree of accuracy. By analysing
However, implementing AI systems requires substan- historical data, market conditions, and consumer
tial initial investment, data infrastructure, and skilled preferences, GAI systems can identify potential spikes
personnel. Additionally, the AI prediction accuracy in demand for particular products or services. Man-
relies on the quality and relevance of the input data. agers can achieve significant value and a competitive
The dynamic nature of markets and consumer behav- edge by making effective data-based decisions (Con-
iour also challenges maintaining accurate forecasts boy et al., 2020; Sivarajah et al., 2017). Furthermore,
over extended periods. As AI continues to evolve, high-performing companies tend to be more inclined
demand forecasting techniques will likely become to use analytics compared to their less successful
even more sophisticated. Predictive analytics, competitors (LaValle et al., 2011). Companies have
machine learning, and data-driven insights will drive utilised AI and machine learning to analyse historical
manufacturers to embrace AI-driven forecasting sales data, market trends, and external factors such as
models. Moreover, advancements in AI will facilitate weather conditions, which helps them predict con-
real-time analysis, enabling businesses to respond sumer demand for their products more accurately.

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The company’s AI-driven demand forecasting can InBev have embraced GPT-4 to assist in deciphering
lead to better inventory management and optimised data for their business intelligence needs. Meanwhile,
marketing campaigns, ensuring products are available Coca-Cola is leveraging ChatGPT and DALL-E 2 to
when and where consumers need them. Utilising craft their marketing campaigns (Global Data, 2023).
predictive and behavioural analytics models enables
the customisation of new product offerings in
response to evolving customer requirements and the Conclusions
precise targeting of marketing initiatives towards
specific audiences.
When manufacturers can foresee increased Integrating AI in manufacturing offers a multi-
demand accurately, they can adjust their marketing faceted approach to enhancing product efficiency,
strategies and production schedules accordingly. This effectiveness, and safety. Manufacturers can signifi-
ability to predict demand patterns enables companies cantly improve their overall operational outcomes by
to allocate resources more effectively (Tadayonrad & streamlining processes, optimising resource utilisa-
Ndiaye, 2023), ensuring that products are available tion, and implementing advanced quality control
when and where they are most needed. As a result, measures. In the realm of skills analysis for manufac-
manufacturers can maximise revenue by capitalising turing processes, AI adaptation plays a pivotal role.
on market trends and customer preferences on time. This technology facilitates a proactive approach to
GAI also enables manufacturers to tailor their workforce development by evaluating historical data,
marketing campaigns to specific customer segments. identifying patterns, and forecasting evolving skill
AI systems can identify consumer preferences and requirements, ensuring the necessary competencies
behaviours by analysing vast datasets, allowing for are identified and cultivated.
highly targeted advertising and promotional efforts. GAI contributes to product quality by identifying
Today, marketers can emphasise the customer and defects in products and processes. Manufacturers can
address their immediate needs as they arise (Haleem swiftly address issues, improving the overall quality of
et al., 2022). GAI plays a crucial role in achieving their products by analysing data patterns, anomaly
extreme personalisation of content by analysing a detection, and real-time insights.
potential customer’s Internet browsing history, previ- In the maintenance domain, GAI emerges as a
ous purchases, and other digital traces. This approach proactive solution. This technology enables timely
leads to the creation of dynamic offers, which, in interventions by predicting equipment failures or
turn, can significantly boost the conversion rate of maintenance needs through comprehensive data
promotional offers (Ooi et al., 2023). This level of analysis. This approach helps prevent downtime,
personalisation can significantly enhance the effec- optimise operational efficiency, and extend the lifes-
tiveness of marketing campaigns, ultimately leading pan of machinery and equipment.
to higher interactive experiences and increased cus- AI’s capabilities extend to market dynamics by
tomer satisfaction. By analysing the behaviour of analysing trends, consumer behaviour, and sales data
similar customers, AI can suggest products more to predict demand for manufactured goods. This
likely to resonate with each individual (Haleem et al., empowers manufacturers to align their production
2022). This approach enhances the customer experi- with market needs, facilitating efficient inventory
ence and increases cross-selling and upselling oppor- management and resource allocation.
tunities. Furthermore, AI optimises marketing strategies
Moreover, GAI aids in efficient resource alloca- by leveraging data analysis. AI enhances overall mar-
tion, ensuring that marketing budgets are spent in the keting effectiveness and customer engagement by
most cost-effective way. Manufacturers can optimise improving the timing of product releases, promo-
their marketing investments and avoid wasteful tional campaigns, and sales events. This holistic inte-
spending by identifying which marketing channels gration of AI technologies underscores their
and strategies yield the best results. This approach transformative impact on various facets of the manu-
enhances a more sustainable and environmentally facturing industry.
friendly manufacturing process. AI can be leveraged to analyse and predict the
GAI can be set to streamline data analysis and necessary skills required for manufacturing. It can
enhance marketing and customer service interac- also assist in mapping current employee skills and
tions. Companies like Nestlé, General Mills, and AB identifying gaps, allowing HR to proactively train or

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hire to meet future workforce demand. For instance, Budhwar, P., Chowdhury, S., Wood, G., Aguinis, H.,
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