Artificial Intelligence AI Readiness Index as a Signpost for the Industrial AI Transformation

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Detecon International GmbH

FAULHABER Drive Systems

The introduction of artificial intelligence in the manufacturing industry is no longer an option - it is a strategic necessity. But the reality is often different.

According to the Study "Innovation & Technology Adoption" by Detecon International, only 20 percent of the companies surveyed in the manufacturing and production sector have implemented AI technologies across the board. The remaining 80 percent are still in various phases of evaluation and implementation.

The AI Readiness Index offers a systematic approach to overcoming this implementation gap: It measures the prerequisites for successful AI integration and identifies specific areas for action. But which factors are really decisive for success - and how can the transformation process be managed in a targeted manner?

AI in Production: The Status Quo

Highly automated and intelligent factories are the declared goal of many industrial companies. AI plays a key role in this: it promotes innovation, shortens production cycles, increases efficiency and even has the potential to reduce emissions in the long term. At the same time, it improves the safety and maintenance measures of machines. The application scenarios for AI in manufacturing are diverse: they range from predictive maintenance and real-time quality control to automated production planning.

However, the path to an AI-driven factory is complex: many companies fail to put this into practice. There is a lack of overarching strategies and clear responsibilities. Instead, isolated pilot projects are created in individual departments. These isolated solutions can hardly be scaled up later. Companies lack a systematic approach for the sustainable integration of AI into their processes.

AI Readiness - Holistic Assessment Dimensions as a Basis

For companies to use AI systems and tools correctly, they first need a systematic analysis of their AI readiness. An AI Readiness Index examines this holistically based on three central dimensions:

• The strategic orientation shows how strongly AI is already anchored in the corporate strategy. It analyzes defined goals and use cases as well as their significance for key company figures. The availability of budget and resources is also included in the assessment. A comparison with industry standards reveals the strategic need to catch up.
• The technological basis includes the prerequisites for AI applications - from data availability and IT infrastructure to development tools. The analysis identifies technological gaps and prioritizes investments according to their economic importance.
• The organizational framework evaluates existing competencies, structures and the corporate culture. The comparison with best practices shows how change management and the innovation culture are set up. Low maturity levels indicate a need for action. The costs of organizational adjustments are also taken into account in the analysis.

Systematically Evaluating AI Maturity in Production

AI maturity is assessed in a structured process. This records the status quo and derives targeted measures from it:

1. Preparation phase: First, experts and companies work together to identify the relevant processes and stakeholders. It is important to involve all affected areas - from production to IT and management.
2. On-site evaluation: During the on-site evaluation, experts assess AI maturity in all dimensions. They conduct interviews, analyze processes and review documents. Standardized evaluation grids ensure an objective assessment.
3. Evaluation: The results are incorporated into a comprehensive assessment report. This documents the current level of maturity and provides specific recommendations for action.

From Analysis to Action

Based on the maturity analysis, companies receive a concrete roadmap for their AI transformation. This comprises three time horizons:

• Short-term measures achieve initial success within six months.
• Medium-term projects develop systematically over 6-18 months.
• Long-term programs ensure sustainable transformation beyond 18 months.

The maturity analysis also includes fundamental make-or-buy decisions: Do companies want to develop AI solutions themselves or purchase them from external providers? Factors such as existing expertise, strategic importance and availability of resources play an important role here.

The important thing is that AI readiness requires a continuous process. The technology continues to develop and new applications emerge. Regular reassessments measure progress and identify new areas for action. The assessment criteria must also continue to evolve - what is considered progressive today may be standard tomorrow.

Change Management as a Critical Success Factor

In addition to technological changes, the introduction of AI also requires a cultural change within the company. Professional change management is therefore an essential part of the AI transformation. The AI Readiness Index evaluates this using specific criteria.

A central point here is the management culture. Managers must actively exemplify change and promote an innovation-friendly environment. A transparent communication strategy that continuously informs everyone involved about AI initiatives supports this.

At the same time, a systematic training program qualifies employees for new tasks and the use of AI technologies. The index also assesses the extent to which the company involves its employees in shaping the AI transformation.

Successful companies invest specifically in these "soft" factors. They create a culture of continuous improvement in which employees experience AI as support for their work. Regular employee surveys show how acceptance is growing and where the company needs to make adjustments.

AI Paves the Way for the Factory of the Future

The AI transformation is fundamentally changing the manufacturing industry. Companies are now deciding: Are they actively shaping this change or are they letting it overtake them? The AI Readiness Index offers a structured approach to mastering this challenge. It enables companies to undergo a systematic AI transformation and thus create decisive competitive advantages.

Martin Schiesser is Senior Partner for Manufacturing Industries at Detecon