Industry study AI brings productivity, flexibility, and security

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The topic of artificial intelligence (AI) is consistently being expanded with new insights, as shown in Honeywell's AI report. Results: The main advantages of AI applications are in the areas of productivity, flexibility, and workforce safety. It also has the potential to address the skilled labor shortage in the industry.

The enormous acceleration in computing power has paved the way for industrial AI. Therefore, the next decade promises a wave of new ideas and investments in AI-driven systems and processes. As with any technological change, there are successes and failures. Companies that take strategic steps towards autonomy and scale intelligently are best prepared for this development. The use of AI can help utilize resources more efficiently and make processes more effective. This allows people to work smarter.

In the recently commissioned study "Industrial AI Insights Report" by Honeywell, it is evident that AI pioneers recognize the value of artificial intelligence for industrial applications. Enthusiasm for larger AI investments is nearly universal: 94 percent of respondents plan to expand their AI usage, with 63 percent of respondents in retail even considering themselves pioneers in this segment.

This should not come as a surprise when considering the potential of this transformative technology to improve key processes in the supply chain. These include demand forecasting, intelligent inventory management, and automation, as well as route planning, IoT devices (Internet of Things), real-time shipment tracking, and risk management, which are all part of supply chain processes.

Mobile AI assistants for retail

Retailers use AI algorithms and machine learning models on "edge devices" like mobile computers or tablets in-store. This allows employees to perform their work more efficiently while simultaneously handling other tasks, such as customer consultation or executing multi-step workflows in the warehouse.

Another application where AI enhances employee efficiency is voice control via headsets, combined with software that provides insights and analytics. The solution guides employees through workflows in real-time. They speak into a hands-free headset and receive specific instructions as well as confirmation that they have selected the correct items. AI can add additional features. Furthermore, it supports a wide range of different languages and takes into account tones, dialects, and pronunciation.

In October 2024, Honeywell announced a collaboration with Google Cloud. This enables AI agents to connect with resources, people, and processes to accelerate safer, autonomous operations in the industrial sector. As part of this collaboration, Honeywell utilizes Google's Gemini Nano model to enhance the intelligence of Honeywell edge AI devices in various applications. This includes scanning performance as well as voice-based workflows, maintenance, operational, and alarm support, without the need for an Internet or cloud connection.

Promote autonomy in the supply chain

The increased use of AI is changing the human-machine interface in retail as companies look for new ways to make supply chains faster and more productive. At the same time, this promotes autonomy in the industrial sector—without losing sight of people.

Through machine learning (ML), AI systems identify patterns in historical sales data and create more accurate forecasts of future demand. This helps avoid overstock and shortages. AI also assists in selecting the most efficient picking and packing methods and strategies—right up to effective route planning and returns management.

The combination of AI with IoT enables companies to connect devices and sensors to collect data and optimize logistics processes. AI even optimizes energy consumption in the supply chain by analyzing energy use and identifying inefficiencies.

AI improves resource deployment and processes

It is important to assess where AI systems are useful, where they provide the greatest benefit, and how AI success can be measured. The following three key areas should guide decision-making:

• Evaluate data to utilize resources more effectively. Every well-functioning, complex process generates large amounts of data. In supply chains, the more complex the transport routes and logistical environment, the more diverse and detailed the data flow. AI has the potential to assist in filtering, analyzing, and developing strategies for more efficient workflows and risk mitigation.

• Align design with efficiency. Whether it's a production facility with autonomous components, a redesigned warehouse, or distribution routes with integrated AI support, many companies are in the early stages of their investments in AI-compatible systems and facilities.

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  Date: 08.12.2025

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• Keep employees at the center to promote smarter work. In light of the growing skills shortage and the retirement wave of the baby boomer generation, companies are relying on AI to close this gap, for example through the edge AI capabilities already discussed in this article.

When asked whether intelligent machines reduce the demand for human labor, it appears that this concern is unfounded in many cases. In fact, Honeywell’s latest survey found that AI is already being used to increase employee flexibility (51 percent), improve job satisfaction (48 percent), and create more time for creative thinking (46 percent).

Conclusion

According to the latest Honeywell report, the three main benefits of AI implementation for AI pioneers in retail are increased employee and resource efficiency and productivity. The path to autonomy is an iterative process for many industrial companies, and when AI is used strategically, it has the potential to accelerate this journey. This applies equally to retail and logistics. Both industries are the perfect environment for AI-driven automation. The combination of routine processes, large data volumes, performance optimization requirements, and a global labor shortage offers great potential for AI. Given these advantages, it is not surprising that enthusiasm for this technology remains undiminished. (ls)

*Edwin van den Maagdenberg is Vice President and General Manager – Europe, Industrial Automation of Honeywell International Inc.