Generative AI opportunity worth $2 – $5 billion annually for Australian manufacturers: new report

Australia’s Generative AI Opportunity, a report released by Microsoft and the Tech Council of Australia, claims that manufacturing is in the top four parts of the Australian economy to share in an economic boost estimated to be worth between $45 billion and $115 billion annually by 2030.

Generative AI (GAI) is a term referring to artificial intelligence able to create new content, including text, videos and pictures.

According to the report released on Wednesday, $2 billion and $5 billion a year could be added to manufacturing in Australia by the end of the decade.

It estimates GAI could automate about 30 per cent of tasks and augment another 19 per cent — with the saved time spent on complex and strategic activities — as well as rapidly upskill technicians and trades workers. 

However, more needed to be done to hasten digital transformation. The report estimates 72 per cent of manufacturers upped digital transformation efforts throughout the COVID pandemic, though only 20 per cent currently use AI, with the industry’s digital investment “lagging”.

“Generative AI has the potential to redefine the industry, playing to Australia’s strengths of producing high-quality and highly technical products,” said Tech Council CEO Kate Pounder.

“But [manufacturing] needs to accelerate its digital transformation to make the most of this significant opportunity.” 

According to the statement, AI is currently used by manufacturers for tasks including predictive maintenance and robotics.

GAI technology could create more value still, by using data patterns “to generate new content such as images, text or designs” and benefit through examples such as “designing or recommending products based on trending features, upskilling apprentices and technicians, and automating supply network controls.”

“There’s a huge opportunity for the manufacturing sector as it deploys generative AI to support workforce transformation, enhance smart factories and supply chain resilience, and accelerate innovation,” said Lee Hickin, Chief Technology Officer at Microsoft Australia and New Zealand.

The report can be accessed here.

Picture: credit www.zuehlke.com