PRODUCTION BUSINESSES EMBRACE AI, ML, IOT

More than half of the country’s manufacturing businesses, some 56 per cent, have embraced new technologies in the past year, according to the latest CreditorWatch Business Sentiment Survey.

However, the CreditorWatch report says those 44 per cent of Australian manufacturing businesses that have not adopted any new technologies in the past 12 months are causing concerns about their ability to stay competitive, as digital transformation reshapes industries.

Among production companies, the top technologies adopted include AI at 32 per cent, ML (machine learning) at 20 per cent, and IoT (internet of things) at 17 per cent, with 17 per cent of also adopting big data analytics.

And it seems manufacturing is happy with its move into new technologies, with almost all, 90 per cent, satisfied with the outcomes of AI adoption in their business. Some 32 per cent were very satisfied, while 58 per cent were somewhat satisfied.

According to CreditorWatch the biggest obstacle cited to more successful digital transformation for production businesses was limited financial resources, which affected 36 per cent of respondents, while 27 per cent said limited time/capacity was their biggest issue for implementation. For 20 per cent of production operations, it was not knowing how or where to start. Having a lack of employees with the appropriate skills and capabilities was a blockage to another 20 per cent of companies.

The results specific to production companies came from some 96 respondents.

Over the whole survey, CreditorWatch said larger businesses are the most likely to embrace new technologies, with 89 per cent having adopted such innovations over the past year. Medium-sized businesses follow close behind at 80 per cent, while only 38 per cent of small businesses report similar adoption.

CEO, Patrick Coghlan, CreditorWatch, said the results demonstrate both the potential and the challenges of digital transformation across industries.

“It is encouraging to see so many businesses adopting AI and other advanced technologies,” he said. “However, the fact that nearly half of businesses haven’t implemented any of these technologies highlights the ongoing barriers, such as limited financial resources and concerns about cybersecurity, which are holding many back from realising the benefits that can be achieved through digital transformation.

“In today’s economic climate, where businesses are under pressure from a range of external factors, digitally transforming and optimising operations with the support of futuristic technologies can help deliver cost savings and competitive advantage.”