March 17, 2025

    7 Ways AI Can Transform Manufacturing

    Manufacturers are discovering an unexpected ally in AI. Beyond the buzzwords and hype, AI is reshaping manufacturing with measurable results already flowing to the bottom line. There are at least 300 generative AI use cases across all manufacturing domains, with 70 of them already demonstrating value, according to a report from the Manufacturers Alliance Foundation. And Microsoft is leading the way, with Business Central, Power Platform and Copilot combining to enhance processes in every part of a manufacturer’s business 

    Here are seven areas where AI-powered tools can help manufacturers today: 

    Supply Chain Management 

    Manufacturers know better than anyone that the supply chain is not as consistently reliable as it used to be. It’s not surprising, then, that most manufacturers have implemented or are planning to implement AI tools in supply chain management.  

    AI excels at processing large amounts of information and with the worldwide manufacturing industry generating an average of 1.9 petabytes per year according to McKinsey, it’s a perfect match. AI can then use that information to detect patterns and suggest a course of action, which means it can help manufacturers evaluate their suppliers, forecast demand, predict logistical issues, and optimize both their inventory and their pricing accordingly.  

    Microsoft’s offerings on this front include a traceability add-in for Dynamics 365 Supply Chain Management that helps businesses increase the visibility of products and events throughout the supply chain, as well as Copilot capabilities to assist front-line workers as they solve supply chain problems in the field. 

    Design and Engineering 

    More than 75% of manufacturers are already starting to use AI for regulatory compliance, according to the Manufacturers Alliance Foundation, and there are more ways AI can help at the design and engineering stage. Generative AI can help create and choose design options more quickly, model and simulate those options and detect potential design errors that could lead to defects.  

    Microsoft Azure OpenAI service is helping manufacturers tighten their product development cycles by enabling faster programming of industrial robots and programmable logic controllers. The combination of human ingenuity and AI-powered efficiency promises to increase manufacturing innovation moving forward.  

    Production, Maintenance and Safety 

    Once a product is designed and ready for production, AI can help production and maintenance teams get it done. Virtual expert assistants can help workers solve production problems and address maintenance issues quickly, even if it’s a new product or if the worker is inexperienced. AI can also assist operations workers with coding tasks. They don’t need to have any coding experience they simply describe what they need code for, and AI quickly and accurately generates it. And predictive maintenance tools can anticipate breakdowns and dispatch workers to address them before they disrupt assembly.  

    AI can also ensure a safer working environment for humans by doing things like detecting PPE compliance, measuring fatigue and distraction to alert workers when they need to take a break, and remotely performing safety inspections.  

    Recently, Microsoft Cloud for Manufacturing has helped manufacturers improve production line performance with tools including industrial AI assistants. One manufacturer used an AI platform built on Microsoft Azure to reduce their production cycle by 3% while also improving overall equipment effectiveness by 2%. And with Power Platform, manufacturers can easily develop apps and automation to assist with the entire manufacturing process.  

    Quality Control 

    Computers have been getting better at quality control for a while now, and recent advances in AI have made them particularly effective at catching failures, visually or otherwise. Some tools are capable of directly detecting issues that escape the human eye, while advanced chatbots offer workers quick and accurate answers to any quality-related questions they may have while on the floor. AI can help with everything from asset health monitoring to remote diagnostics and analyzing the root cause of failure. 

    With Microsoft Copilot, manufacturers can develop small language models focusing on specific tasks, such as quality control, and fine-tune them to their exact specifications.   

    Information Systems and Cybersecurity 

    The factory floor may be the big show; however, behind the scenes, manufacturers have to be careful about protecting their data. AI tools can detect threats and anomalies and automatically respond to incidents, clamping down on intruders while allowing IT teams to address vulnerabilities. 

    Centralized, Cloud-based data is easier to protect, which means that Microsoft Dynamics 365 Business Central is ideal for manufacturers, who can also integrate Microsoft Security Copilot to further boost their capabilities. When it detects an incident, Security Copilot can deliver analysis and guidance to IT and security teams, allowing them to respond quickly. It can also automate tedious security tasks, freeing up staff to focus on high-value strategic priorities. 

    Warehousing and Inventory 

    AI is supercharging warehouse automation with advanced tracking software and picking robots.  It’s also helping manufacturers optimize their warehouse processes, carry as much inventory as they need and make their deliveries more efficient.  

    Microsoft Copilot and Power Platform can be integrated with Microsoft Dynamics 365 Supply Chain Management to generate workload summaries that help warehouse workers plan more productive and efficient shifts. 

    Aftermarket and Customer Services 

    The benefits of AI don’t stop once a product has been shipped. It can also help improve technical support for customers, making it easy for reps to immediately respond to issues and reduce turnaround times. AI can also simplify the warranty claims process by automatically summarizing claims, making it easier to review and address them and allowing manufacturers to concentrate more resources in value-adding parts of the organization. Some AI tools can even help customers predict when a part might fail and save on repair costs, which further reduces warranty claims for the manufacturer to deal with. 

    Microsoft Power Platform’s Power Virtual Agents can handle a manufacturer’s lower-level customer inquiries while cleanly integrating with Business Central, freeing up human reps to address higher-level, higher-impact tickets. 

    Leverage AI with a Reliable Technology Partner 

    At Enavate, we can help your manufacturing company take full advantage of Microsoft’s AI-enhanced enterprise platforms. Contact our expert team today to learn more. 

    Tag(s): Manufacturing

    Enavate Recent Posts

    March 18, 2025

    Combat Efficiency Killers in Your Distribution Systems with CoPilot

    Efficiency increases are often seen as the Holy Grail for distribution businesses. Finding ways to offer even minor boosts to efficiency numbers can have a direct and often... Read More
    March 17, 2025

    7 Ways AI Can Transform Manufacturing

    Manufacturers are discovering an unexpected ally in AI. Beyond the buzzwords and hype, AI is reshaping manufacturing with measurable results already flowing to the bottom... Read More
    March 11, 2025

    Keeping Your ERP On Premises? Expect More Downtime  

    As the saying goes, “The best ability is availability.” Your ERP system could have all the trendiest bells and whistles and none of it will really matter if the system can’t... Read More

    Subscribe to Receive Email Updates