4 Ways Manufacturers Can Navigate AI Challenges and Make the Most of Government Grants

The Australian Government and state governing bodies will continue to inject funds into the country’s manufacturing industry, with the Australian Government announcing its budget for ‘A Future Made in Australia’ earlier in June this year and the Queensland Government recently launching Round 7 of its Made in Queensland (MiQ) grants. These grants have heavily focused on supporting activities that will directly advance Australia’s manufacturing capabilities.  

One key theme that these grants repeatedly aim to promote is the adoption of advanced technology in manufacturing.   

The Adoption of Artificial Intelligence in Manufacturing 

As AI rapidly transforms the manufacturing industry, businesses are seizing the opportunity to enhance productivity, innovation, and competitiveness. AI promises a brighter future, but it also brings significant challenges.   

Despite widespread enthusiasm, a report from the National AI Centre reveals a gap between perception and reality in responsible AI adoption. While 78% of businesses claim to implement AI safely, only 29% do so correctly. Key challenges include transparency, fairness, safety, and explainability, with significant disparities between company beliefs and actual practices.  

To help manufacturers make the most of the recent and future government grants, we’ve explored how businesses can successfully navigate key challenges when implementing AI.  

1. Transparency and Accountability: Empower Your Leadership Teams 

A major challenge in AI adoption is ensuring transparency and accountability in decision-making processes. The 2024 Responsible AI Index highlights that only 25% of companies actively involve top management in discussions on responsible AI practices. This disconnect can result in a lack of oversight, increasing the risks associated when introducing AI into the business.  

Here are two ways you can ensure your leadership teams are fully engaged in AI-related decisions:  

• Consider forming cross-functional teams that include not just technical experts, but also HR leaders and operations managers. This holistic approach ensures that AI projects are aligned with both ethical guidelines and business goals.  

• Train leaders to understand AI’s implications. This will enable them to responsibly and clearly guide their teams through AI-related challenges and ensure new processes are implemented across the business smoothly 

2. Fairness and Bias: Build a Culture of Inclusivity 

While 69% of organisations believe they can prevent unfair treatment through AI systems, only 35% have fairness metrics in place, according to the same report. In manufacturing this could be an AI system being used for performance evaluations. The system could unfairly favour employees from certain shifts or departments if it’s trained on biased data. This could result in qualified workers being overlooked for promotions due to skewed algorithmic decisions. 

Reduce biases by educating employees on how AI can impact decisions. Here are a couple of strategies:  

• Encourage managers to be vigilant about bias in AI systems and train them to regularly assess AI-driven outcomes.   

• Hiring teams should also be trained to identify and mitigate biases, ensuring that AI tools used in recruitment are transparent and fair. Fuse Recruitment can also support businesses with non-biased recruitment solutions. Learn more about our approach here.  

3. Safety and Security: Prioritise Workforce Safety 

The introduction of AI often leads to concerns about job security and physical safety in AI-assisted environments. The Responsible AI Index revealed that while 84% of organisations believe their AI systems adhere to safety regulations, only 37% conduct risk assessments to ensure employee safety.  

A strong focus on employee well-being will build trust in AI systems. Below are three ways to focus on safety with regards to AI in your business:   

• Prioritise continuous safety training for employees, ensuring they are well-versed in how to operate alongside AI technologies safely.   

• Encourage your teams to report safety concerns related to AI and automation.   

• Consider creating AI-specific risk assessment procedures that integrate employee feedback, so your team feel protected and valued as automation increases.  

4. Explainability and Contestability: Foster an Open Dialogue 

Understanding how AI systems work is critical if you want all parties to be buy-in to its implementation. However, while 76% of organisations claim they can explain their AI algorithms, only 39% have developed concrete materials to do so, according to the same report.   

Employees who don’t understand how AI makes decisions may feel alienated. Here’s how you can promote a culture of transparency where employees can easily understand AI-driven decisions:  

• Create clear, easy-to-understand guides that explain how AI tools work, especially in areas that impact their roles.   

• Ensure employees feel comfortable questioning AI-driven decisions by providing them with a platform to raise concerns. This open dialogue can prevent miscommunication and build trust between employees and AI.  

AI in manufacturing isn’t just about machines and algorithms—it’s about the people who make AI work. By creating a work environment that prioritises transparency, fairness, safety, and communication, your organisation can stay ahead of the AI curve.  

As pioneers of implementing advanced recruitment AI and automation technology in our own company, we understand the intersection of talent and technology. Our team at Fuse Recruitment specialises in helping manufacturing businesses recruit top talent and create a culture that thrives alongside AI innovations. By focusing on both people and technology, you can unlock the full potential of AI and lead your company into the future of manufacturing. 

Contact us today to learn how we can help you recruit the right talent and build an AI-ready workforce.