AI Shakes Up Manufacturing: Early Struggles, Later Gains for Adaptors
Summary
While early adopters of AI in manufacturing initially faced productivity declines from replacing human workers with robots, over time surviving firms that embraced AI outperformed in sales growth, productivity, and employment, while older and larger companies struggled to adapt and reap AI's long-term benefits.
Key Points
- Early adopters of AI in manufacturing saw productivity drop initially as they replaced human workers with robots
- Over time, surviving firms that adopted AI began outperforming in sales growth, productivity, and employment
- Older and larger companies struggled to adopt AI and reap its long-term benefits