Industrial AI's Growing Digital Divide

Author photo: Colin Masson
ByColin Masson
Category:
Technology Trends

Based on ARC Advisory Group's latest end-of-year survey, a significant digital divide persists in the industrial sector regarding the adoption of Industrial AI. 

The survey, which included 591 respondents from various industrial sectors, reveals that only 10 percent of companies are at a mature stage of digitization of data and digitalization of processes where they are able to use Industrial AI tools and techniques to automate and optimize smart manufacturing processes. An additional 11 percent are deriving real-time insights to guide optimization, while 17 percent are busy connecting people, processes, and technology. Alarmingly, a substantial 62 percent of respondents are still in the early phases of their digital transformation journey, characterized by sporadic and uncoordinated efforts.

These findings underscore the growing disparity between industrial leaders and laggards, as previously highlighted in ARC’s report, "Widening the Digital Divide: How Leaders are Embracing Industrial AI". This digital divide is becoming increasingly evident as leaders aggressively adopt a wide range of Industrial AI tools and techniques—including generative AI—to drive innovation and productivity, leaving laggards struggling to catch up.

The survey results highlight the challenges faced by many industrial organizations as they navigate the complexities of digital transformation and the adoption of Industrial AI. The majority of industrial companies are still struggling with the fundamentals of digitization and data management, hindering their ability to capitalize on the opportunities presented by AI.

The survey also underscores the importance of investing in the foundational technologies and infrastructure needed to support Industrial AI. For example, the study shows that data quality remains a significant challenge for many organizations, highlighting the need for investing in Industrial-Grade Data Fabrics. Without a robust data infrastructure, companies will struggle to effectively implement AI solutions.

Learn More at the ARC Leadership Forum Next Month

To help industrial businesses navigate the complexities of Industrial AI and close the digital divide, ARC Advisory Group invites IT, OT, and business decision-makers (BDMs) to attend the ARC Industry Leadership Forum in Orlando, Feb 10-13. This forum will provide attendees with actionable insights and guidance on various aspects of Industrial AI adoption including:

  • Ensuring data quality and assembling Industrial-Grade Data Fabrics.

  • Fine-tuning AI Copilots and AI Agents using industrial data.

  • Exploring a wide variety of use cases for the Industrial AI toolset that includes Causal AI, Gen AI, Autonomous AI Agents and Multi-Agent Orchestration.

Register here.

By attending this forum, industrial executives can gain a deeper understanding of how to compete in the new age of Industrial AI, learn from the experiences of industry leaders, and accelerate their digital transformation journeys. This is a great opportunity to network with both technology vendors and industrial end users and help your company get on the right path with your Industrial AI strategy.

For ARC Advisory Group recommendations for navigating the AI Wars, and closing the digital divide by embracing Industrial AI, and governing and guiding major decisions about enterprise, cloud, industrial edge and AI software, please contact Colin Masson at [email protected] and set up a meeting at the ARC Leadership Forum!

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