One out of two small and midsize manufacturers that have built smart factories recognized the need to introduce artificial intelligence (AI) into manufacturing processes.
According to the results of the "Survey on AI adoption by small and midsize enterprises that built smart factories" released on Oct. 19 by the Korea Federation of Small and Medium Enterprises, 47.4% of small and midsize manufacturers said that "AI adoption in manufacturing processes is necessary." The findings are based on a survey of 502 small and midsize enterprises that participated in win-win smart factory projects between large and small companies over the past five years from Oct. 16 to 30.
In particular, the higher the level of smart factory implementation—ranging from basic (38.8%) to advanced (58.4%)—the more strongly corporations felt the need for AI adoption.
The area most cited as needing AI adoption was "quality control" (33.9%). This was followed by "production optimization" (32.3%) and "process automation" (31.9%).
The top reason AI adoption is difficult was the "burden of initial expense," at 44.2%. A considerable share of corporations, 20.5%, cited a "shortage of skilled personnel." In response to a question about how much they could invest in AI to advance their smart factories, the largest share of corporations, 68.9%, chose "100 million won or less."
Among corporations, 54.6% said they would participate if the government created a new program to support AI-based smart factories. The most needed support for AI adoption was "direct funding" at 72.3%, followed by "AI expert consulting" at 21.9%.
Yang Chan-hoe, head of the Innovation Growth Division at KBIZ, said, "Because there is wide variation depending on each company's factory level and circumstances, a 'two-track' policy seems necessary to continue support not only for adopting manufacturing AI to enable the AI transformation, but also for basic-level digital transformation," adding, "Measures are also needed to resolve the AI adoption expense burden and the shortage of skilled personnel that small and midsize enterprises feel."