“The interaction of generative AI, agentic AI and machine learning across different areas of an organization holds the greatest promise in solving long-term labor shortages,”
the SAP team wrote. “AI can already let a customer snap a photo of a damaged part and identify it for replacement. Its real power will manifest when AI can also determine the part’s inventory status and locations, establish shipping terms and timing, add the part to the procurement queue to replenish once it’s sold, alert engineering that a design change for a chronic defect may be in order and propose alternative designs.”
Emerson Electric Co. is pushing toward such a cross-departmental approach. Speaking at the recent JPMorgan Industrials Conference, COO Ram Krishnan said he’s focused for now on Emerson’s finance and customer care teams, which combined are home to about 10,000 people around the world. Krishnan said there are opportunities to put agentic AI systems on top of Emerson’s Oracle, Salesforce and other platforms housing customer service, financial planning and receivables information, among others.
Still, Krishnan said Emerson’s work will take time to deliver savings. Some will start to show themselves next year, he said, before adding up to productivity gains of 30% by 2029 versus today’s baseline.
“We’re making meaningful investments in frontier models. Now it will obviously [be] in partnership with hyperscalers and open-source technology,” Krishnan said. “It’s early but we do believe that there are 30% productivity opportunities if those solutions work.”
Savings of about 30% in part of your back-office operations by 2029? Putting the promise of AI that way doesn’t sound as daunting or as urgent as the stories of massive payoffs that are surfacing these days from firms eager to make a splash. Yes, it’s time to get to work and solidify your vision and plans. But being thorough and ambitious rather than rushed and myopic is starting to look like the better path.
To download the “AI Integration Index” report, visit the EBI blog right here.