Closing the gap: Strategies for APAC manufacturing businesses to enhance AI talent

In the generative AI race, the Asia Pacific region (APAC) leads with the world’s largest smart manufacturing industry. In fact, this industry is projected to expand by an additional 15.7% by 2030, outpacing the rest of the world. Despite these impressive advancements in AI-supported machinery and technology, the sector is plagued by a shortage of AI-enabled talent. With 75% of APAC employers struggling to find the talent they need. What steps can be taken to close the gap?

Accessing the landscape

In the manufacturing sector, generative AI and strategic investments in Industry 4.0 technologies are becoming critical drivers of growth. Factories are increasingly adopting cutting-edge AI tools and robotic machinery to enhance automation and increase production efficiency. For business leaders, keeping pace with these rapidly evolving technologies can feel like an ongoing challenge, given AI’s constant progression.

To meet this challenge, APAC manufacturing leaders should shift their focus from short-term solutions to a more sustainable strategy — investing in upskilling their workforce. Businesses managed by professional executives often focus on short-term gains and immediate results, despite the organisation’s broader long-term vision. Fortunately, many businesses in the APAC region are still managed by first or second-generation family members, who often focus on building a company that can be passed down to their kids, creating sustainable, multi-generational wealth. Family-owned firms are especially prominent in the region, making up 85% of all businesses. These companies typically favour non-financial, goal-driven strategies with a long-term outlook which stands to benefit them more than short-term visions.

Regardless of the industry, companies that fail to prioritise long-term investment over the next three to five years risk falling behind more forward-thinking competitors. Hitachi is a prime example of a company embracing this long-term vision; it recently committed to training 50,000 employees in AI by 2027, positioning itself to seize future opportunities.

By investing in AI capabilities, Hitachi showcases the proactive approach that is essential for APAC businesses to remain competitive. As AI technologies continue to evolve at a rapid pace, such initiatives are crucial for business leaders to future-proof their operations and stay ahead in an increasingly dynamic marketplace.

Fostering a culture of learning and access to learning

Implementing training and upskilling initiatives is crucial for sparking a revolution in skill enhancement within APAC businesses. However, sustaining this momentum requires fostering an innovative environment that actively supports employees throughout their upskilling journey.

A critical starting point is to establish an open, collaborative, workplace that prioritises not only profitability but also individual career growth. This involves instilling a dedicated focus on learning and upskilling within the company’s core values and beliefs.

Leaders in AI upskilling demonstrate exemplary practices by partnering with external educational institutions to arrange specialised training programmes. This collaboration not only enriches employee skills but also integrates cutting-edge AI applications into operational practices.

Despite possessing advanced AI assets such as 3D printers and robotic arms for construction, many manufacturing businesses struggle with the operational frameworks necessary to effectively manage and support these technologies. The rapid advancements in automation often outpace the establishment of efficient operational processes, highlighting the critical need for human intervention in troubleshooting and monitoring for optimal production line performance.

Upskilling staff in AI is therefore imperative. While online resources are plentiful, the manufacturing sector underscores the indispensable role of hands-on experience. Employers must create environments where employees can apply their learning practically, reinforcing the importance of mindset in fostering innovation.

To facilitate this, partnerships with educational institutions for practical training or apprenticeships can prove invaluable for manufacturing leaders seeking to harness the benefits of AI innovation effectively.

A collaborative approach

The AI skills shortage in APAC is not a challenge that any single organisation can solve alone - addressing this issue requires a collaborative effort from multiple parties. A cooperative strategy is essential to bridge the gap between AI implementation and the skills shortage, necessitating collaboration between the public and private sectors to achieve this goal. Even governments in the region, such as Singapore, have recognised the need for AI talent and have launched apprenticeship programmes and strategies to develop the AI community.

APAC businesses can draw inspiration from North American companies that collaborate with innovative organisations to ensure AI upskilling for their employees. For example,  the University of Maryland's Robert H. Smith School of Business partnered with the Prince George’s County Economic Development Corporation to provide AI training for small business operators. Led by university professors, 50 participants will engage in an online course followed by a three-day boot camp on campus.

The rise of generative AI underscores the need for manufacturing businesses to enhance their talent pool. To address this, business leaders must invest in long-term workforce development, foster a culture of learning, and collaborate with outside stakeholders. By taking these steps, the gap between AI implementation and innovation will be significantly reduced.

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