Where Austria's industry stands in the AI competition

Austria has a strong industry. But what about the use of AI in Austrian industry? A stocktaking of industrial AI. Plus: We bring thought leaders in AI to the fore.

The Chatbot technology from Microsoft has changed the perception of artificial intelligence at breathtaking speed. ChatGPT has indeed achieved something remarkable: the previously separate areas of artificial intelligence (AI) voice, image and text have been united. The technology, which is based on Transformer methods, showed the world in one fell swoop just how powerful AI already is.

The manufacturing industry has long since integrated the use of artificial intelligence (AI) into everyday working life in Austria. From intelligent robots in production to automation applications and data-driven analyses - the use of AI also opens up a wide range of opportunities to optimise cognitive work activities and processes in the industrial environment. According to a Study from Fraunhofer Austria from 2022, AI applications are already in widespread use. every tenth company in operational use. However, the study also shows that there is a big difference between SMEs and larger companies. The gap is particularly wide when it comes to the implementation of AI applications. AI applications only go beyond the pilot phase at one in four companies.

According to Fraunhofer Austria, the biggest challenge for companies is the lack of expertise among employees. The aim must therefore be to convey specific use cases and targeted knowledge transfer regarding the sensible use of AI in the corporate context.

Concrete strategy for the practical use of AI in Austria is still lacking

The positive side: many Austrian industrial companies are facing up to this new competition. In the Fraunhofer study, the participants stated that they would be using AI primarily in the areas of Services and support for customers, IT and research and development.

However, 55 per cent of the companies surveyed by Fraunhofer currently still have No concrete strategy for the use of artificial intelligence. To get a feel for the diverse possibilities of the new technology, we are bringing some of the pioneers of industrial AI to the forefront.

Playful approach to AI at AT&S

AT&S (Austria Technologie & Systemtechnik AG) is an Austrian company that specialises in the manufacture of printed circuit boards and IC substrates. AT&S is one of the world market leaders in this key industry, also with regard to the use of AI. In some factories, an algorithm based on Boolean algebra optimises placement in the production lines. AT&S also already uses AI-supported simulations.

Gottfried Egger, Head of Corporate IT, can imagine production steps being partially or fully controlled and optimised by AI. Self-learning systems based on neural networks could design new architectures. According to Egger, this represents a decisive turning point for the business model of the technology company from Leoben and promotes its further development.

Egger believes that the repeatable process step will "no longer remain a unique selling point" for the Styrians. Instead, it will become a basic prerequisite for AI-optimised developments. These are already on the horizon. Smaller and more powerful systems will make the thermoregulation of substrates increasingly important. In order to harmonise production across the board, the standardisation of data is therefore already a priority. Egger believes that they are approaching AI development "playfully".

Credit: AT&S | Gottfried Egger, Head of Corporate IT, can imagine production steps being partially or fully controlled and optimised by AI.

AI speaks dialect

A particularly nasty task for ChatGPT has been set by Manager Manuel Krammer by Flex for testing purposes. At the company, which offers electronic manufacturing services in Althofen, Carinthia, the tasks for the AI were formulated in traditional Carinthian dialect. "But the programme was not fazed by this," reports Krammer with amusement.

At Flex in Althofen, the Transformer technology is being trialled in various areas. Examples of the use of AI include ghostwriting and smaller software projects, where the technology is already providing an initial reduction in workload.

AI can also be helpful in the search for replacements for electronic components at the end of the product life cycle. "Once we had entered the specifications, the AI successfully identified a successor technology in a test," explains Krammer.

The Carinthians are already using AI-protected processes in a special area - the repair process for manufactured electronic components. These carry out an optical inspection based on historical data.

Credit: Flex | Flex manager Manuel Krammer is already using Transformer technology in various areas on a trial basis.

AI as the next phase of process automation

The aluminium group Amag is already "evolutionarily" relying on AI as the next phase of process automation. In the manufacture of rolled products, mainly for the aerospace and automotive industries, the company uses AI to test around 230,000 material samples every year.

The Upper Austrian company has invested ten million euros in fully automated sample production and testing, which takes place at the end of the rolled product's throughput time of up to 16 weeks. With the help of machine learning algorithms, the testing systems plan and optimise their sample production processes for tensile or corrosion tests practically autonomously and around the clock.

According to the CEO Gerald Mayer This is an important step for several reasons: on the one hand, aviation, the premier class, demonstrably requires an almost 100 per cent quality of delivery. On the other hand, the CEO is aware of the difficulty of motivating employees to work shifts at weekends, especially as the labour market is pretty much exhausted.

Credit: Amag | The CEO of Amag, Gerald Mayer, has the testing of around 230,000 material samples per year carried out with the support of AI.

AI use in industry: all that glitters is still far from gold

Overall, however, many companies in Austria looking for funding to invest in artificial intelligence are still finding it difficult to secure the funds. A study by the National Qualifications Framework (NQF), an instrument for classifying qualifications in the Austrian education system, shows that many SMEs in Austria, particularly in the area of production, have not yet truly recognised the benefits of artificial intelligence. The argument often put forward is that the technology is still too expensive and difficult to implement.

Nevertheless, according to a report by the Austrian Federal Economic Chamber, Austrian industry has already generated around 37 million euros have invested in AI. According to the Fraunhofer study, almost all companies with more than 2,000 employees are also using artificial intelligence, with applications at least in the test phase; around a third of these larger companies are already using AI applications in an operational environment. These figures show that Austria's industry has recognised that AI is an important factor in remaining competitive.