By Shane Taylor, Manufacturing Technical Specialist at ECI Software Solutions
Artificial Intelligence (AI) has undoubtedly become core to smart manufacturing. Yet despite this, many businesses are still deploying AI without fully understanding its potential to truly transform operations. Too often, manufacturers hesitate to integrate AI into their everyday operations or fail to define what they actually need from the technology in order to unlock its real value.
This hesitation comes at a time when supply chains face mounting pressures. As risks such as tariffs ripple through operations, legacy systems simply cannot adapt at the pace modern manufacturing demands. Research already shows a widening AI implementation gap in UK industry. 75% of firms still rely on outdated legacy tech, despite 76% of industrial and manufacturing businesses expressing a strong appetite for cutting-edge technology. This gap highlights both the urgency and the opportunity for manufacturers to modernise, improve visibility, and strengthen profitability.
From BI to AI: moving from hindsight to foresight
As manufacturers look for ways to modernise and strengthen their operations, one of the most significant opportunities lies in how they use the systems already at the heart of their business. Enterprise Resource Planning (ERP) platforms are not just tools for operational efficiency, they also act as a central source of truth that can enable smarter, more strategic decision-making.
For years, BI tools within ERP systems have helped manufacturers analyse their outcomes with reports and determine root causes through historical data. For many manufacturers, this was their first step into data-driven decision-making. BI tools have provided descriptive insights about what happened and diagnostic insights that explain why it happened.
While valuable, BI is mostly retrospective, keeping manufacturers on the back foot by reacting to performance like sales and gross profit to help guide the next move. With the rise of AI, they can shift to the front foot, anticipating what’s ahead with predictive capabilities.
AI can forecast sales outcomes based on patterns hidden in large, complex order history datasets. It can go a step further by recommending which changes, like purchasing new equipment, are most likely to produce the best results. This transforms data from a reference point into a real driver of operational decisions. The evolution from BI to AI marks a major leap in how manufacturers can unlock insight, reduce risk, and act faster than ever before.
Operationalising AI
Manufacturing AI products currently use the technology to extract data, map processes, and suggest recommendations, while humans remain in control of final decisions. It is best utilised when handling cumbersome but essential tasks like developing Bills of Materials (BOMs) or Request for Quotations (RFQs).
Since BOMs act as the blueprint for building products, accuracy is critical to avoid rework, inventory issues, or production delays. Instead of relying on employees to enter every detail, AI can scan drawings, images, or charts to identify components, numbers, and descriptions, then generate a digital BOM that’s stored for future use. Employees can still review and adjust the AI-generated results, ensuring the data is accurate and tailored to the specific needs of the business. These files can integrate directly into ERP workflows, linking with estimating to keep projects moving faster.
AI can also assist with quote processing by reviewing RFQs to ensure all requirements like addresses and delivery dates were received. If more information is needed, it can help draft responses to customers and even develop final contracts. These approaches can remove guesswork and reduce errors while giving teams more time to focus on higher-value work.
AI steps beyond simply improving transaction efficiency and execution by automating these routine tasks, unlocking actionable insights from unstructured data that traditional ERP, MRP, scheduling, or CAD systems struggled to fully use. By bringing intelligence to this information, AI empowers manufacturers to make quicker, more confident decisions that keep their operations resilient and competitive.
Knowing what you want as a manufacturer
AI is in a constant state of innovation, and that can be challenging for firms looking to integrate AI into their operations. However, it also presents an enormous opportunity: the ability to evolve continuously, improve efficiency, and strengthen resilience over time.
The most important first step is clarity through knowing what you want AI to achieve for your business and where your journey should begin. This strategic groundwork sets the direction for smooth implementation and ensures that AI is deployed where it can have the greatest impact.
Equally important is bringing your people with you on the journey. From the most junior team members to senior leadership, everyone must understand the transformation the organisation is embarking on. When employees are informed, empowered, and aligned, the implementation process becomes smoother, adoption becomes faster, and the organisation is far better positioned to achieve its goals.
AI is not a switch that is flipped, it’s a capability that grows with your business. With the right foundations, transparency, and vision, manufacturers can unlock AI’s full potential and move confidently into the future.
