September 9, 2024
The use of artificial intelligence (AI) in physical operations is set to become commonplace within just a couple of years as the organisations that power the global economy embrace this transformative technology.
That’s according to the new 2024 State of Connected Operations Report — Smarter, Faster, Safer: The AI Revolution in Physical Operations — which found that AI is no longer perceived as something “faddish” or "too new to try".
Instead, the businesses and organisations that span industries such as construction, logistics, manufacturing, and transport are investing in AI to gain a competitive edge. Those that have already taken the plunge are seeing the biggest ROI in areas such as safety and employee productivity.
“Driver safety is a key benefit of AI technology,” said Olivia Fagan, Compliance Officer at UK-based logistics firm, Fagan & Whalley.
“For example, our training and compliance team can assess how aware a driver is of an obstacle on the road ahead, which lets us delve deeper to tailor our driver training. That’s a big part of our wider commitment to making UK roads safer and of our mission of continued improvement,” said Olivia, who wrote recently about the impact AI has had on her business.
Samsara’s survey of 1,500 physical operations leaders across 21 industries in seven countries, reveals how AI is already revolutionising how these organisations operate.
It argues that AI is a “market-tested technology whose utility is proven and expanding” and that it’s being used by industries that are “on the cusp of an unprecedented period of transformation.”
“Advancements in AI have ushered in a new era of transformative technology, as well as frenzied speculation about how AI will revolutionise the world,” said the report. “Though much of the public discourse has centred around generative AI, applications of AI within the world of physical operations are often overlooked.”
The report — which surveyed organisations in Canada, France, Germany, Ireland, Mexico, the UK and the US — found that 93% of leaders from all countries surveyed say their organisation is either already using AI, has plans to implement it, or is open to using it in the next 1-2 years.
If the current appetite for AI is sustained, it looks set to be commonplace in physical operations by 2026, said the report.
But despite this bullish forecast, the report also identified some regional variations across EMEA. In the UK and Ireland, a staggering 99% of those quizzed said that AI is vital to stay competitive. While in Germany and France, the response was slightly different with 87% of those surveyed saying AI will play a role in their operations in the future.
The report also highlighted that while 45% of businesses in the UK and Ireland were already using AI, in Germany it was 41% and in France, 29%.
That said, the mood among employees using AI is buoyant, with 92% of employees in France feeling positive about using AI, compared to 89% in the UK and Ireland, and 80% in Germany.
“There are plenty of reasons for these variations,” said Philip van der Wilt, SVP EMEA at Samsara.
In some instances, opinion is swayed by political debates or economic headwinds. For instance, although the European Parliament passed the Artificial Intelligence Act in July 2024 — described as the “world’s first binding law” on AI — the protracted negotiations that led to the legislation were not without criticism.
“When you look at the political climate surrounding AI in the EU, it’s easy to see how this may have taken the shine off people’s view of this transformative technology compared to the UK or US, for example,” said Philip.
Economic factors may also have played a part in the variations across Europe. Although the EU emerged from recession earlier this year, it is still relatively weak, especially in key nations such as Germany and France.
“However, it’s important to note that a large majority of leaders in these countries still believe that AI investment is vital to stay competitive,” said Philip. “The differences in percentages might reflect nuanced views on the best ways to implement and regulate AI, rather than a fundamental disagreement on its importance,” he said.
While different countries are embracing AI at different speeds, there appears to be little doubt about the impact the technology will make in the not-too-distant future.
"AI is everywhere, and physical operations leaders are quickly embracing it,” said Evan Welbourne, Head of AI and Data at Samsara. “When used strategically, advances in AI can bring meaningful change to the companies that power our global economy. For example, it can reduce costs, boost efficiency, and even save workers' lives in the field.”
And regardless of the pace of adoption, it’s clear that security and data privacy are of paramount importance. There is a growing understanding across all those surveyed that AI requires a vast amount of data to work effectively. And while it presents opportunities, it also represents huge responsibility in terms of privacy and data protection.
“Not all AI solutions are created equal,” said Welbourne. “You have to be able to trust the system, and that means finding a technology partner who not only has a proven track record with responsible innovation, but who also deeply understands your business and the challenges you’re up against.”
To view all insights from the State of Connected Operations Report — and discover how operations leaders are embedding AI into their organisations — in localised language, please visit: DE | FR | UK