Benefits Workforce and Talent Development
8 WAYS ARTIFICIAL INTELLIGENCE
BENEFITS WORKFORCE AND TALENT DEVELOPMENT
As the industry faces immense pressure to remain competitive, more manufacturers are evaluating and implementing artificial intelligence (AI) as a means to accelerate technology adoption and ensure workforce readiness.
More than half of manufacturers are leveraging generative AI tools in their operations and over 40% plan to increase investment in AI and machine learning over the next three years, according to Deloitte’s 2024 Future of the Digital Customer Experience survey.1
It’s not surprising, then, that AI is also becoming an essential tool when it comes to attracting, retaining, developing and training the manufacturing workforce.
Although there are concerns about how AI will impact jobs, the industry is seeing that, rather than eliminating jobs, AI helps workers focus on highervalue tasks and enhances decision-making.
A study by Gartner2 predicts that by 2030, AI-based management of employee skills — and how people are deployed to meet business needs — will be a core capability.
“Technology innovation is not just for manufacturing processes,” said Jeannine Kunz, CEO, SME. “AI and other technologies can be used for talent and workforce development, so manufacturers have the skilled talent they need for competitiveness and resiliency.”
Manufacturers are learning that, by implementing AI tools as part of an overall workforce strategy to engage with talent and close the skills gap, they can enhance productivity, build efficiency, increase innovation, and drive growth.
Here, SME delineates the promising benefits of AI for workforce development based on extensive interactions with manufacturers and workforce organizations. While the technology and uses are still in the early stages, AI holds great potential for the manufacturing industry.
WAYS AI BENEFITS WORKFORCE AND
DEVELOPMENT
[1] Deloitte. (2025, January). Manufacturing orgs get real about AI, data strategy. Insights2Action. https://action.deloitte.com/insight/4246/manufacturing-orgs-getreal-about-ai-data-strategy
[2] Wellener, P., Koch, J., Yauch, B., & Ramsdell, T. (2023, November 29). 2024 manufacturing industry outlook. Deloitte Insights. https://www2.deloitte.com/us/en/insights/industry/ manufacturing/manufacturing-industry-outlook.html
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CAREER DEVELOPMENT AND PATHWAY
AI could also be a valuable asset for talent development by mapping out personalized career pathways for employees based on their skills and experience as well as company needs. AI-driven platforms like career simulation models suggest relevant training, certifications and job opportunities. Adaptive learning customizes training based on performance metrics, including identifying high-potential leaders and learning velocity.
Personalized Skills Passports are being used to help prepare the workforce to meet current and future challenges. These AI-powered tools identify an individual’s current skills, the skills they need for emerging in-demand roles – and then provide a tailored learning pathway to address the gap. For individuals, Skills Passports provide a clear, individualized roadmap to advance their careers. For companies, they offer a strategic way to upskill or reskill employees to fit business needs and drive competitiveness.
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When it comes to customizing training programs, AI can assist by analyzing workforce data to create dynamic, engaging, competency-based curricula. AI-driven platforms adapt learning materials to individual learning speeds and preferences, optimizing training outcomes.
AI is also being used to build immersive training technologies that are implemented within curriculum. For instance, augmented reality (AR) can be incorporated into maintenance guides. Smart glasses could overlay AI-generated repair instructions using live IoT sensor data.
SME & AI
CURRICULUM DEVELOPMENT
Last year, Ford launched a new training platform for its franchised dealers that uses AI for employee coaching evaluations in an “edutainment” format. The main goals of the “Ford University”7 platform are to improve customer service, better engage employees — especially younger tech-savvy ones — and provide dealers and the company with more data to assist business.
SME has been testing and piloting the use of AI in supporting, attracting and retaining staff, onboarding new employees, and identifying and assisting enrollment at academic institutions. We are seeing positive results from the early pilots and expect to see increased application of AI to productively and positively improve workforce efforts.
WORKFORCE PLANNING
For both long-term and immediate goals, AI may prove a valuable aid for workforce planning by forecasting labor demands, optimizing shift schedules and predicting workforce trends. AI models can analyze production needs, equipment upgrades, employee performance and market trends to optimize workforce allocation. For talent pipeline management, AI platforms monitor full employee lifecycles and predict attrition risks.
For workforce management, training in real-time knowledge systems is essential. This includes learning to integrate maintenance chatbots and generative AI assistants — such as Siemens’ Industrial Copilot8 — that can generate code and troubleshoot.
With dramatic technology change throughout the industry, strategic workforce planning can help manufacturers make data-driven decisions about talent, so they are prepared for what’s ahead.
HR POLICY AND PROCEDURE
HR teams are experimenting with AI on a variety of tasks, from analyzing compliance data to automating policy updates. AI-driven systems can also help detect biases, streamline administrative tasks and ensure regulatory compliance. Adoption of these strategies shows a commitment to improving employee engagement and satisfaction.
Needing to navigate varied cultures, languages and regulations, global companies are especially benefiting from AI tools. From neural machine translation that preserves engineering nuances across 40+ languages to cultural adaptation engines that modify training content for regional contexts, AI is revolutionizing manufacturing’s approach to global training solutions.
There are opportunities where AI can solve HR problems and help HR become more efficient.”
— Matthew Hladki, Chief Administrative Officer, Grede
No matter where manufacturers are based, or their size, AI can remove some of the daily administrative burden and free up the HR team to do more value-added work — such as training and talent development, employee engagement, apprenticeship program development, community partnership building and more.
[8] Siemens. (n.d.). Industrial Copilots: Generative AI-powered value chain optimization. Siemens. https://www.siemens.com/global/en/products/automation/topic-areas/industrial-ai/industrial-copilot.html
WHAT’S TO COME
AI is advancing with great velocity. This means AI tools will continue to improve, offering better and more affordable options for manufacturers. Here is what SME expects to see on the AI frontier:
Causal Machine Learning
Causal machine learning (ML) focuses on finding cause-and-effect relationships rather than just predicting outcomes. Instead of merely identifying patterns, it tries to determine why something happens, helping employees understand the actual drivers behind a process or result. Frontline staff who engage with causal ML tools can gain the ability to interpret data with a deeper understanding of root causes, which builds a more skilled and informed workforce over time.
Knowledge Transfer From Retiring Workers
The “silver tsunami” is underway as experienced manufacturing veterans are retiring in large numbers. Capturing their expertise and sharing it with newer hires is critical. By using AI and straightforward digital tools, companies can record best practices, procedures and tips from this experienced group. This might be performed through video tutorials, Q&A systems or AI-driven “knowledge banks.” Newer employees gain access to real-world insights that textbooks or manuals might not cover, helping them develop faster and maintain the high standards set by seasoned veterans.
Agentic AI
Agentic AI refers to software that can make decisions and take actions on its own, based on the goals and rules given to it. Unlike traditional AI, which operates within predefined parameters, agentic AI demonstrates autonomous decision-making, goal-driven actions, and the ability to learn and adapt in real time. This will have important uses as the technology develops.
• Personalized Learning Journeys: AI agents can create and dynamically adjust individualized training programs based on an employee’s performance, career goals and skill gaps.
• Proactive Skill Development: Rather than waiting for human input, agentic AI can identify emerging industry trends and initiate relevant upskilling initiatives for employees.
• Autonomous Career Coaching: AI can act as a proactive career adviser, suggesting role transitions, mentorship opportunities and skill adjacencies without constant human prompting.
• Real-Time Performance Optimization: Agentic AI can monitor work patterns, provide instant feedback and autonomously implement micro-adjustments to enhance productivity.
• Adaptive Workforce Planning: By analyzing multiple data sources, agentic AI can forecast skill demands, initiate recruitment processes and suggest organizational restructuring to meet future needs.
AI HOT TOPICS
As with all emerging technologies, AI is sparking much conversation about opportunities and challenges.
TOPICS OF INTEREST INCLUDE:
Security:
Is AI integrated through a secure company network or is it public? What is the best way to protect proprietary information?
Compliance: Are AI tools being used responsibly for hiring to avoid unintentional bias, discrimination or lack of transparency? Is personal data kept private?
Legal/Regulatory:
How will AI be regulated on both federal and state levels? How will issues like liability and intellectual property impact use?
Transparency: How are companies acknowledging the use of AI during the employment process?
HOW CAN WE HELP?
As a nearly 100-year-old nonprofit organization, SME is focused on advancing manufacturing to drive competitiveness, resiliency and national security. To deliver on that purpose, we relentlessly investigate the best ways to innovate and support the industry in accelerating adoption of technology and developing talent.
Let’s work together to create a smarter, more innovative, higher-performing workforce.
