Ready or not, AI is rewriting the rules of manufacturing

Supply chain chaos, cost pressures, and market volatility are struggles manufacturers face every day. And they know that these are here to stay. But they also know there's a better way to navigate these challenges: by working smarter with AI.

Across our client base, I am seeing a shift in mindset. The driver? A need to rethink operating models to stay ahead of uncertainty.

Too often, AI is seen as a tool for efficiency. But when paired with deep industry expertise, it becomes a catalyst for growth.

Take our work with a global specialty materials manufacturer. It had 10 years of formulation data sitting in scattered systems. We used AI-driven modeling to harmonize this treasure trove of information, cutting lab experiments by 70%. Its R&D teams shifted from routine testing to breakthrough innovation, slashing time to market by months.

This way, you let humans do what they do best: find quicker ways to solve problems and invest brain power in building strategies. But where do you begin?

Here's the truth: organizational silos are tough to tackle. When your business, technology, and operations teams work in isolation, you're fighting tomorrow's challenges with yesterday's rulebook.

I often begin my conversations with clients by helping them connect these dots. You need integrated informational technology and operational technology (IT/OT) ecosystems that unify plants, supply chains, and enterprise systems. Only then can you see decisions flow from a unified set of data and KPIs instead of conflicting departmental priorities.

Technology is only half the equation. Manufacturers winning this race invest heavily in their people. They're upskilling workforces in agentic AI, machine learning, and advanced analytics.

This means building innovation hubs where teams can rapidly prototype, test ideas, and deploy solutions that adapt instantly to market changes. It's about creating a culture that encourages experimentation.

Yesterday's supply chain management was reactive: you spot problems after they've already hit your operations. Agentic AI flips this script entirely.

We've built AI-driven forecasting models that help manufacturers predict supplier risks, demand swings, and cost changes before they cascade through the business. But today, we're tapping into our partnership ecosystem to go beyond monitoring. How? Through AI agents that can automate procurement decisions to cut cycle times and power predictive maintenance.

The result? Supply chains that can face disruptions head-on.

Remember when finance teams would only focus on processing transactions? Today's AI-powered finance functions forecast cash flows, build working capital, and surface revenue insights in real time. Just like the Genpact AP Suite that organizes, orchestrates, optimizes, and executes AP processes autonomously, turning finance operations into a strategic advantage.

So, instead of handling payables and receivables, you can deploy AI-run systems to guide leadership on capital allocation, identify emerging risks, and unlock liquidity to fund growth initiatives.

The question isn't whether AI will reshape manufacturing. It already is. The question is whether you'll lead this change or react to it. You can't wait for perfect conditions. Start where you are, with what you have, and build momentum through smart AI implementations.

Your data creates opportunities every single day. I still remember how we used our Cora Knowledge Assist platform to put the power of large language models directly into engineers' hands. Sifting through specific technical documentation across thousands of files? Done in seconds. This AI-powered assistant boosted productivity without the learning curve. So, look for opportunities to make your data and processes AI-ready.

But beware of AI hallucinations. To avoid that, you need responsible frameworks and governance. Also, build accountability and define ownership within your teams. Last but not least, choose a partner who aligns with your AI vision and helps you get closer to your goals.

The blog is based on Diwakar's interview with Digital Edge.