The Biggest AI Hurdle Facing OEMs Today
To better understand the points of friction in this transformation, we recently polled our network with a critical question:
“Which of the following do you think will be the biggest hurdle for OEMs in the next 2-3 years?”
The results offered an interesting glimpse into the current state of the industry.
The Data:
The results highlighted a specific hierarchy of challenges:
- 38% – Lack of AI Talent
- 25% – Workforce Impact
- 19% – AI Legacy System Integration
- 18% – Quality of Data
While every option received significant votes, proving that the challenge is multifaceted, the winner was clear. The technology itself isn’t necessarily the biggest problem. Finding the people to drive innovation in this space is potentially a larger hurdle according to respondents.
Why “Lack of Talent” Took the Top Spot
It comes as no surprise to us at Penta Consulting that over a third of respondents identified the Talent Gap as the primary bottleneck.
The demand for AI expertise currently far outstrips supply. We aren’t just talking about general software engineers. OEMs specifically need Machine Learning engineers and Data Scientists who also understand the complexities of supply chains and manufacturing hardware.
You can buy the most advanced GPU clusters and subscribe to the best cloud platforms, but without the human talent to architect the solutions, that investment is dormant.
The “Hidden” Connection: Why the Runners-Up Matter
While Talent won the vote, the other three categories (totalling 62%) tell an important story. Interestingly, they are all problems that require talent to solve.
- Workforce Impact (25%): A quarter of respondents worried about how current teams will adapt. This is a change management issue. Leaders will be challenged to bridge the gap and interaction between AI capabilities and human workflows in a minimally disruptive and ethical way.
- Legacy Systems (19%) & Data Quality (18%): These are the “technical debt” of the manufacturing world. Integrating AI into 20 year old ERP systems or cleaning unstructured sensor data requires highly specialised skills.
The reason Talent was noted as the #1 hurdle is potentially that without it, you will struggle fix the Data, integrate the Legacy Systems, or manage / minimise the Workforce Impact.
Bridging the Gap
The polling data confirms what we see on the ground every day. The race to AI implementation in the OEM sector may not be won by the company with the most data or best technology out of the gate. It may actually be won by the company with the most agile and talented team.
If your organisation is facing these hurdles, the solution isn’t just “hiring.” It is strategic workforce and solution planning. It involves upskilling your current workforce to mitigate “Workforce Impact” fears. It also involves partnering with specialists to identify and provide those “needle in a haystack” experts who can handle Legacy Integration and manage key projects.