Artificial intelligence AI in the cloud: Key technology for process automation

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ORACLE Deutschland B.V. & Co.

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Artificial intelligence brings many benefits to manufacturing companies. It promotes the automation of processes, facilitates the daily work of employees, and contributes to increased productivity. However, it must be implemented correctly.

*Martin Cereceda is Senior Industry BDM Manufacturing & Automotive Germany at Oracle.

The public debate around artificial intelligence focuses on weighing its advantages and risks, as well as its continuous development. It is largely undisputed, however, that AI fundamentally changes human work. The potential of AI in the cloud for the global competitiveness of German and European companies becomes particularly clear.

The challenge faced by German manufacturers in light of shrinking margins in global competition becomes particularly apparent when compared to competitors, for example, from China. There, many companies benefit from lower labor costs, an efficient supply chain, and government support, which leads to significant cost savings. Not least, the high production capacity in China allows for mass production at low unit costs. Furthermore, government subsidies and favorable financing models promote innovation and the expansion of new technologies. To remain competitive, German manufacturers are obliged not only to score with quality and technological aspects but also to drastically optimize their cost structure. The integration of AI in conjunction with automation technologies is central in this regard.

The interplay of AI and automation significantly contributes to optimizing the entire value chain. AI applications enable precise analysis of data along the entire value chain. Automation technologies help companies implement the gained insights automatically, quickly, and cost-effectively.

More efficiency in production and logistics

An outstanding example is smart production control using AI. It enables machines to be automatically optimized based on real-time data. This not only reduces production costs but also increases accuracy.

In logistics, intelligent route planning algorithms combined with automated warehouses can maximize throughput and reduce transportation costs. Some companies are already successfully using automated warehouse robots to meet the demands for fast and cost-efficient processing. In procurement, AI provides the basis for data-driven analysis of supply chains to predict bottlenecks and respond early with automation. Here, companies benefit from improved resilience to disruptions in global supply chains, such as those that occurred during the Covid-19 pandemic.

AI as a driver for process optimization

Typically, companies use AI features provided in the cloud via individual APIs as Software-as-a-Service (SaaS). Some users are already integrating AI functionalities into their software processes. This facilitates and accelerates implementation and reduces the burden on users. This is because the cloud providers themselves are responsible for the operation of the cloud solutions, while the companies retain full control over their data in this model. Moreover, SaaS solutions generally score points for cost efficiency, as companies do not need to maintain their own experts and expensive infrastructure.

In addition to smart production control, companies are now frequently using AI to optimize decision-making processes. The technology is capable of analyzing large amounts of data in a short time and clearly illustrating the results. Employees gain new insights through this procedure to make better decisions. Especially in view of the need to consider ever-larger data volumes, the enormous potential of AI becomes evident, enabling efficient work to continue.

High data quality for valuable insights

For AI applications in the cloud to reach their full potential, the quality of the data foundation is crucial. The goal must be to link and prepare information that comes from many different sources within and outside the company. The accumulation of the required data in usable quality can be done in the cloud. Typically, providers of cloud solutions offer assistance specifically for this purpose. The result is a unified data base that meets all the prerequisites for further analysis. Ideally, this data is used to train and further develop AI models in the cloud and to purposefully advance the digital transformation within the company.

Other features that make cloud-based AI applications worthwhile in practice are low latency, scalability, and security. Depending on the current demands and workloads, cloud resources can be flexibly adjusted as needed at any time. In terms of data protection and security, the cloud is set up so that control over all data always remains with the users. For this purpose, each company using cloud solutions with AI functions receives an exclusive environment for its workloads.

Solution package for the smart factory of tomorrow

Industrial companies that systematically optimize their data inventory and processes improve their chances of success in the market. Increasingly, cloud-based AI is being used—a smart technology that convincingly offers usability, cost efficiency, security, and scalability. By choosing the right cloud provider, decision-makers set the course for optimizing value creation and keeping the business model on the path to success in global competition.