A significant milestone in the journey of artificial intelligence (AI) in manufacturing was crossed on September 27, 2024. Industry leaders gathered for the launch of the Singapore’s Sectoral AI Centre of Excellence for Manufacturing (AIMfg) by the Agency for Science, Technology and Research (A*STAR), a pivotal moment for those committed to integrating AI into their operations. AIMfg is part of Singapore’s efforts, led by the country’s National AI Strategy 2.0, to build a thriving industry ecosystem that creates significant value through AI and enhances capabilities across the AI technology stack.
McKinsey senior partner Oliver Tonby said, “Industrial AI with robotics is going to transform manufacturing and we’re only at the starting line. I get super excited when I see the forward leaning equipment, use cases, capabilities, the ecosystem of partners at AIMfg. This is the future coming towards us in practical steps.”
McKinsey played a crucial role as one of the strategic partners in the establishment of the AIMfg. Together with Singapore’s A*STAR, McKinsey introduced the AI Readiness Index for Manufacturing (ARIM). ARIM is an AI readiness evaluation tool that can help companies assess their AI maturity, benchmark themselves against their peers and see how to draw on AIMfg to kickstart their AI journey. The tool is based on McKinsey’s AI Quotient (AIQ) asset that has been used by over 750 companies across sectors and can provide insights at both company level and country level.
McKinsey partner and digital and analytics lead for Southeast Asia Vivek Lath explains, “ARIM gives companies a holistic assessment of the benefits of analytics transformations. Most analytic transformations focus on the technology; ARIM goes further and gives a more complete picture. For instance, along with looking at analytics, ARIM shows what capabilities need to be developed and what operating model is best. It can also show you where you stand compared to your peers.”
The AIMfg launch was officially inaugurated by Mr. Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry in Singapore, and held at the Advanced Remanufacturing and Technology Centre (ARTC). In his opening speech, Mr Gan said, “The objective of the AIMfg was to convene stakeholders across industry, research and the start-up ecosystem to develop AI-enabled solutions that would address use cases in the manufacturing sector. … With a strong base of use-cases, talent and capability-building initiatives, the AIMfg can be a strategic enabler to drive the adoption of AI-enabled solutions within the manufacturing sector.”
Prior to the launch of AIMfg, over 80 CxOs, digital, and operations leaders gathered at the Innovation and Learning Centre (ILC), also at ARTC, for an enlightening AI Summit. The summit featured dynamic discussions on how AI can streamline processes, boost productivity, and transform value chains across various sectors, including procurement, supply chain management, production, and maintenance. Participants had the unique opportunity to explore AI use cases firsthand, previewing the innovations that will drive the future of manufacturing. “The summit was a great collaboration with ARTC (Advanced Remanufacturing and Technology Centre) and brought a sector-based approach to embedding AI in manufacturing in Singapore,” McKinsey senior partner and co-leader for the firm’s operations practice in Asia, Azam Mohammad shared.
With the launch of AIMfg, to draw on Deputy Prime Minister Gan’s words, Singapore “can build a strong, innovative and vibrant manufacturing sector, that will enable us to … continue to provide good jobs for Singaporeans.” McKinsey is proud to be part of this journey.
If you are a company in the manufacturing sector and wish to learn more about AIMfg, contact Anna Chua or Bo Li.