Between managing supply chains and supporting aging infrastructure, achieving growth goals and uniting operations can be daunting for manufacturers. But when your business depends on reliability, doing nothing is a risk of its own. It’s time to reassess where and how your manufacturing organization could be modernized—and technology is the key.

How can manufacturers grow with data-driven modernization?

Modernizing manufacturing is vital to ensure your organization's future success. Leaders who embrace digitization, data analytics and AI in manufacturing give their company a competitive edge. By modernizing manufacturing infrastructure and migrating to more advanced, often cloud-based, programs, you’ll be able to achieve agility, pursue new opportunities for growth and make room for internal innovation.

3 key components of modernization in manufacturing:

  1. Data modernization—the process of moving data from on-premises, siloed legacy systems to cloud-based platforms designed to improve accessibility and real-time accuracy
  2. IT modernization—the act of overhauling hardware and operational technology and replacing systems with more flexible, software-defined environments to support modern needs and build a lower-cost, high-security infrastructure
  3. App modernization—the task of revitalizing old applications, rather than replacing the entire system, to improve functionality, enable quicker updates and make it more user-friendly

Benefits of modernization in manufacturing

  • Increased productivity—upgraded systems, particularly AI in manufacturing, are proven to accelerate production, minimize human error and reduce overall waste
  • Reduced operational costs—modern equipment and technology require less maintenance and reduce downtime, preventing costly stoppages
  • Enhanced data-driven decisions—real-time data provided by up-to-date systems enables faster and more informed decision-making
  • Supply chain optimization—investing in automation and AI in manufacturing streamlines inventory management, reduces bottlenecks, prevents stockouts and creates a more resilient supply chain
  • Scalability—modernized manufacturing infrastructure lets leaders adapt to market demands and integrate advanced technology without disrupting the ecosystem
  • Improved quality—AI in manufacturing can be used to oversee quality control, resulting in better products overall
  • Better resource management—modern systems provide you with a better understanding of inventory, so you know which resources are low before it is too late

AI and manufacturing

Today, AI is transforming the manufacturing industry. Through technologies such as machine learning, natural language processing and computer vision, AI in manufacturing is designed to enhance efficiency and adaptability across various steps of the production process. The exact systems put in place can vary by company, but the goal remains the same.

With carefully designed algorithms, AI in manufacturing proactively identifies potential issues and autonomously adapts processes as needed. Introducing this advanced technology is not meant to replace important human employees, but rather to augment certain tasks and empower your team to focus on higher-value assignments. It might seem simple enough, but AI has the power to revolutionize manufacturing for good.

2026 AI trends in manufacturing:

  • Predictive maintenance: AI uses sensor data to predict machinery failures before they occur, rather than afterward, reducing damaging downtime
  • Generative AI: Designed to create and optimize product designs
  • Cobots: Short for collaborative robots, work in tandem with human operators to perform certain tasks, like welding or packing
  • Sustainability optimization: Used to optimize energy consumption, reduce production waste, and combat eco-issues for AI in manufacturing
  • Improved product inspections and product quality: AI visual inspection systems are now trained to spot defects early in the production process to ensure a uniform result

What are the main challenges of AI in manufacturing?

Modernizing manufacturing doesn’t always come easily when it’s first introduced. While investing in AI for manufacturing is considered vital, it can present several challenges.

One concern is that, since AI relies heavily on high-quality data, an organization must upgrade its outdated infrastructure before implementing new technology. If one were to rush the early steps of modernizing manufacturing and skip the vital overhaul of legacy systems, introducing AI wouldn’t deliver positive results. As you and your consultant build the plan to modernize your manufacturing business, make sure not to set goals that are unachievable.

Another major challenge faced when modernizing manufacturing is skills shortages. AI, while it’s been around for a while, is still a relatively new field. This has created a talent gap, with a scarcity of professionals with expertise in artificial intelligence and data science. If a company cannot invest in these experts, adding and maintaining AI in a system can be difficult.

Additional challenges of AI in manufacturing:

  • Operational risks
  • Cybersecurity concerns
  • Initial implementation costs
  • ROI uncertainty
  • Cultural resistance
  • IT/OT integration
  • Reliability

How AI affects ERP systems in manufacturing

In manufacturing, AI offers unique enhancements to enterprise resource planning systems, or ERPs. This software serves as a hub for integrating manufacturing technologies, enabling organizations to manage resources more efficiently and effectively. Adding AI to the mix transforms ERP systems from passive to predictive by streamlining complex processes, improving speed and allocation costs to optimize efficiency.

Finding the path to modernized manufacturing

If you’ve been in the industry for a while, there may be a part of you assuming you can handle modernization all on your own. While starting the process is certainly possible, it’s extremely difficult to see through or maintain in the long run without professional help. True, comprehensive manufacturing modernization requires expertise and a well-rounded approach. That’s where CGI comes in.

Which CGI solutions are designed to modernize manufacturing?

  • Safety Data Sheet Automation: A streamlined, ML, OCR, RPA and AI-powered way to automate safety data sheet content extraction and ingestion
  • Safety Data Sheet Authoring: Aids regulatory processes and promotes safer, more sustainable operations for companies managing chemical products
  • SimpliTest: Improves quality, speeds time to market and lowers risk while enabling proactive shift-left quality engineering
  • CGI IntelliMigrate360: A modern document migration platform designed to reduce risk and realize business value at a rapid speed

Connect with CGI to discuss your modernizing manufacturing goals

With years of experience, you can trust CGI to care about the outcomes of your manufacturing modernization efforts. We provide the combination of data, technology, industry knowledge and change management expertise you’re looking for. Contact us today to get started.