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A robotic arm gets to work at German manufacturer Rittal’s smart factory in Haiger, to the west of Hesse, Germany.

Rittal

Conversational artificial intelligence that can be used to communicate with equipment and generate machine parts. Digital versions of vehicles and planes that can be modified to fine-tune their physical counterparts. And autonomous robots that move as you walk by.

These are just a few of the technologies that will power the factories of the future, according to technologists and industry experts who spoke with CNBC.

In the future, factories will be much more connected, relying on a mix of technologies, from artificial intelligence, data platforms and edge devices to the cloud, robotics and sensors, Goetz Erhardt, Europe lead for Accenture’s digital engineering and manufacturing division, told CNBC.

“These technologies support fully automated, ‘dark’ plants, automated decision-making, enhanced equipment monitoring, and new production networks with recycling and upcycling capabilities,” Erhardt said via email.

Today’s factories — from those used in machinery and automobiles to food processing plants — have progressively become more advanced with regard to adopting technology. Robotic arms involved in the manufacturing process — adding and removing materials, welding and placing goods on pallets — are now a common sight.

More advanced A.I.

As much more advanced artificial intelligence technologies are added into the mix, the industrial manufacturing process could shake up further. Conversational systems such as OpenAI’s GPT could one day become integrated into robotics, enabling more sophisticated, emotionally intelligent machines.

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“Generative AI (AI that makes new content in response to user inputs) has enormous potential in manufacturing for equipment optimization, interaction and intelligence — from robotic processes through to machining,” Simon Floyd, director of manufacturing and transportation industries at Google Cloud, told CNBC.

Google is among the tech world giants looking to capitalize on large language models, which can generate more humanlike responses thanks to the huge amounts of data they are trained on. The company launched its own AI chatbot Bard earlier this year to rival OpenAI’s ChatGPT.

Consumer products aren’t the only focus of Google’s AI efforts. The company recently upgraded its cloud platform for manufacturers to more efficiently pull data from machines and detect anomalies in the production process.

Going forward, AI will be able to “converse using natural language with manufacturing equipment to understand the current state and the predicted future performance — therefore assisting people and allowing them to focus on high value tasks,” Google Cloud’s Floyd told CNBC.

Floyd said that Google is already working to achieve this with natural language processing capabilities in its AI tools. The company has also created a language model for robots called PaLM-E, which gathers sensory information from the physical environment, as well as text-based inputs.

Engineers will eventually be able to develop new machinery using generative AI tools, Floyd said.

“In the future, there is potential to generate content from and for many types of manufacturing equipment, ranging from specific repair instructions to software code that is tailored to a specific asset.”

‘Digital twins’

One development many industrialists are excited about is “digital twins” — 3D digital replicas of objects in the physical world that can be modified and updated in parallel with the items they aim to mimic.

One example of a company using digital twins to aid its physical manufacturing is Rolls Royce, whose engineers create precise virtual copies of its jet engines and then install sensors and satellite networks on-board to feed back data to the digital copy in real time.

“For every modern Rolls Royce jet engine up on a plane in the sky, there’s one in the cyber sphere that needs to be maintained, working out how much stress is going through the plane,” said John Hill, CEO of Silico AI, a startup that focuses on digital twins for business processes. “That will depend on how the engine is faring in the atmospheric conditions and pressures in the air.”

Another example is Renault, which created a digital twin for a new “software-defined” car with artificial intelligence capabilities to enhance services.

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Digital twins form part of the so-called “metaverse,” which embodies the idea that people will spend more of their work and leisure time in huge 3D digital spaces. Some companies are also looking to incorporate the physical world in some iterations of the metaverse. 

Many manufacturers see potential in the “industrial metaverse,” a version of the metaverse tailored to the manufacturing, construction and engineering industries. Accenture’s Erhardt told CNBC that he is mainly seeing use cases in creative collaboration and product development, maintenance and remote repairs, designing and optimizing production operations, and workforce training

“The metaverse could become a game changer for industrial companies once they couple its collaborative, immersive, visual and intuitive dimensions with digital twins fed by integrated data pools across departments, systems, operations technology and IT,” Erhardt said. “This could create a virtual, fully immersive and intuitive simulation of the entire enterprise.”

Safety first

Companies are looking for ways to cut down on more menial tasks in factories with digital technology, amid a wave of labor shortages.

“Previously, automation has not been an option for manufacturing products due to minimal financial resources and investment,” Olivier Ribet, Executive Vice President, EMEAR at Dassault Systèmes, told CNBC.

“However, this is changing rapidly due to technological changes that have decreased costs and democratized automation through low/no code robotics allowing more manufacturing companies to leverage the advantages of automation in terms of precision, efficiency, and productivity.”

There are downsides to consider — not least of which job security — as the rise of AI and digital automation in factories has led to worries about the labor market. Generative AI, a relatively recent development, could erase 300 million jobs, Goldman Sachs estimates.

Still, history shows that technological progress doesn’t just make jobs redundant, it also creates new roles— which typically outpaces the number of jobs displaced. Manufacturers are still scrambling for staff, with 41% of manufacturing businesses citing talent pool as a “very significant” barrier preventing full potential, according to a Bain and Company survey.

The hope is that connecting machines to the internet and integrating sensors and predictive AI algorithms will allow them to more safely navigate their surroundings and work collaboratively with humans, rather than replace them, according to Maya Pindeus, CEO of AI startup Humanising Autonomy.

“Think of the factory, you have robot arms, you have different vehicles to move goods around, you have operators, you have safety cameras,” Pindeus told CNBC. 

“What I would look at in the factory of the future is you have high levels of safe automation that can operate around people … I’ve been to factories where you have the big robot arm caged up and it’s really far away from people. It looks very inefficient to me.”

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Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

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Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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Amazon to halt some of its DEI programs: Internal memo

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Amazon to halt some of its DEI programs: Internal memo

Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.

In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.

“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.

Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.

In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.

Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”

Other companies, including McDonald’s, Walmart and Ford, have also made changes to their DEI initiatives in recent months. Rising conservative backlash and the Supreme Court’s ruling against affirmative action in 2023 spurred many corporations to alter or discontinue their DEI programs.

Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.

The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.

Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

Read the full memo from Amazon’s Castleberry:

Team,

As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.

As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.

In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.

This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.

We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.

#InThisTogether,

Candi

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.

“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.

The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.

In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.

Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.

Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.

Tesla did not immediately respond to CNBC’s request for comment.

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