Why It is Hard to Find AI in SMEs: A Survey from the Practice
and How to Promote It
Andreas Bunte
1
, Frank Richter
2
and Rosanna Diovisalvi
2
1
Institute for Industrial IT, Langenbruch 6, 32657 Lemgo, Germany
2
Swiss Global Investment Group AG, H
¨
unenberg, Switzerland
Keywords:
Artificial Intelligence (AI), AutoML, SME, Manufacturing, Survey.
Abstract:
AI seems to be an important aspect of Industry 4.0, which was introduced about 10 years ago. The main results
of interviews about AI with 411 people from 68 companies have been summarized in this paper. Most of those
companies were SMEs. Main challenges for the application of AI have been identified. Concrete solutions
that can support the implementation and application of AI are presented. The need to adequately support AI
in SMEs is underlined and specified.
1 INTRODUCTION
The term Industry 4.0 shall promise a new era of in-
dustrial production (Kagermann et al., 2013). Pro-
duction plants should be more flexible to react faster
to market demands, more user-friendly, and more pre-
dictable (Kagermann et al., 2013), e.g. through condi-
tion monitoring. A huge potential is predicted, which
is in a range from 10 to 35 % for additional produc-
tivity on conversion costs (R
¨
ußmann et al., 2015),
whereas other studies identify savings even up to
70 % (Bauernhansl et al., 2016). This potential shall
partly rely on Artificial Intelligence (AI) (Wahlster,
2017).
Since the term Industry 4.0 is known for about 10
years (Wahlster, 2017), we want to review the state
of the utilization of the term AI in the industrial envi-
ronment. Do people exactly know what AI is in the
context of manufacturing? How far goes the imple-
mentation and success of AI in manufacturing? What
are the concrete benefits of using AI? If the phrases
of huge potential are not just good for marketing pur-
poses, it is expectable that AI is well known in com-
panies.
The paper is structured as follows: At first, we
summarized the key findings out of the conducted
interviews about AI in the production area compa-
nies, with a focus on Small- and Medium Enterprises
(SMEs). Secondly, we lined out requirements and
potential strategies to support the usage of AI in the
companies. Afterwards, two best practice solutions
are introduced. Finally, we draw a conclusion and
give an outlook for potential future steps. The contri-
bution of this paper is to uncover potential challenges
with regards to AI based on conducted interviews and
to offer concrete strategies to support AI.
2 CHALLENGES AND HURDLES
OF AI IN PRODUCTION
This article is based on conducted interviews with 411
people from 68 companies located in Germany, Aus-
tria, and Switzerland. The purpose of the interviews
was to primarily find out, (a) how common the use of
AI in production is, (b) what effects employees recog-
nize and observe by the use of AI and (c) how the eco-
nomic effects of AI are being measured in industry.
Therefore, we interviewed experienced employees in
production that are decision-maker including foremen
and plant managers, from different industry sectors,
predominantly from machine and plant construction
companies. The revenues of the respective companies
are up to almost 250 million Euros per fiscal year. The
minimum revenue of the respective companies was 12
million Euros, each based on the fiscal year 2019. We
used an interview guideline in form of a structured
questionnaire including several open questions. The
latter seemed important and adequate for the present
case since we wanted to avoid leading people in a cer-
tain direction by preparing closed questions and there-
fore get an unintentional bias by limiting the number
of possible answers. The goal of the interviews was to
614
Bunte, A., Richter, F. and Diovisalvi, R.
Why It is Hard to Find AI in SMEs: A Survey from the Practice and How to Promote It.
DOI: 10.5220/0010204106140620
In Proceedings of the 13th International Conference on Agents and Artificial Intelligence (ICAART 2021) - Volume 2, pages 614-620
ISBN: 978-989-758-484-8
Copyright
c
2021 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
get sound feedback from the practice. Therefore, the
interview partners and the companies were not chosen
representative, we did not follow a strict, narrow SME
definition, whereas most of the companies fit into the
established ones. Additionally, we did not distinguish
the different industry sectors with regards to the pre-
sented results of our interviews, since there was no
significant difference identified.
2.1 Basic Challenges with Regards to
Intelligence and AI
To thoroughly analyze the potential impact of using
AI it is amongst others first of all, necessary to
understand what intelligence means and what it might
be or might not be. To begin with, AI is an expres-
sion, that is little concrete. Even though people some-
times love unspecific and generic expressions and un-
substantial but good sounding phrases, it is usually
not helpful for making a business successful. Further-
more, there is no common definition of what intelli-
gence is at least up to now. Not having a common
definition of intelligence, how can we define artificial
intelligence? Dealing with catchwords, not really be-
ing clear about the concrete meaning, might not be
efficient. Let’s consider human beings and the human
intelligence first: What makes a human being intelli-
gent? If he or she is analytical in the way he or she is
thinking? If he or she can solve problems sufficiently
and in a timely manner? If he or she is creative? If
he or she is empathic? If he or she is able to draw
logical conclusions to problems? If the speed of pro-
cessing information is fast? The ability to concentrate
on issues and their solutions? The ability to learn new
things and to unlearn unnecessary or less successful
strategies? The ability to memorize things? All of it
might make sense, but is it the full truth? We don’t
know.
Let’s look at some of the attempts to define in-
telligence. The psychologist William Stern defined
intelligence as the ability of an individuum to adjust
his or her thinking intentionally and goal-oriented to
new demands (Stern, 1912). Intelligence might be
understood as the common adaptability to new tasks
and conditions of life. The social psychologist Peter
Hofst
¨
atter defined intelligence as the ability to deter-
mine the structure and the ability to discover and re-
veal redundancies (Hofst
¨
atter, 1966). The psycholo-
gist Robert Sternberg assumed, that intelligence com-
prises analytical, practical as well as skills related to
experience. In this context, intelligence is mainly re-
lated to the interaction of individuals with their envi-
ronment. The psychologist Linda Gottfredson says,
“intelligence is a very general mental capability that,
among other things, involves the ability to reason,
plan, solve problems, think abstractly, comprehend
complex ideas, learn quickly, and learn from expe-
rience. It is not merely book learning, a narrow aca-
demic skill, or test-taking smarts. Rather, it reflects a
broader and deeper capability for comprehending our
surroundings-’catching on’, ’making sense’ of things,
or ’figuring out’ what to do.” (Gottfredson, 1994)
As you see, the existing definitions of the word
“intelligence” are often widely generic themselves,
but also different. As stated above, generic definitions
don’t really help to be successful in the long-run. Re-
gardless of all the different definitions of what intel-
ligence could mean, we can state justifiably so that
human intelligence is hard to squeeze in a certain def-
inition and that it probably comprises a broad range of
different aspects, such as learning experience, ability
to goal-oriented problem-solving, foresighted think-
ing and acting, but probably also moral aspects, em-
pathy, and creativity. As we saw before, those aspects
are hard to really specify and to sufficiently concretize
in a generally accepted definition. The human brain
is still one of the mysteries in our world. It is com-
plex and has been explored only very little compared
to its potential and ability. Hence, we might want to
be careful with using the word “intelligence”.
Let’s now move on to the expression AI. It might
be helpful to understand AI not as an attempt to copy
human intelligence or human behavior and try to op-
timize it. It might be more useful to understand AI
as the simple and reasonable attempt to further im-
prove processes with regards to effectiveness and ef-
ficiency by using “modern”, state-of-the-art technolo-
gies. In industry, we see lots of attempts to improve
processes under or disguise of AI. In fact, AI seems
to be nothing else than stated above: Improving pro-
cesses with regards to effectiveness and efficiency by
using state-of-the-art technologies, that are able to re-
act to changes in their environment within a certain
scope.
One of the results of the survey we conducted un-
derlines the issue with the expression “artificial intel-
ligence”. The answers are of a wide variety. Some
of the interviewees see AI simply as the ability of
machines to adequately react to certain events in a
faster way than human beings can do whatever ’fast’
means. Others even consider chatbots as intelligent
systems. Obviously, these people had not much to do
with chatbots so far, otherwise, they knew, that chat-
bots are everything else but intelligent. Some inter-
viewees named machine learning (ML) as part of AI.
A majority of the latter were not able to name con-
crete new business models behind their attempt to use
ML in their respective company. Only a handful of in-
Why It is Hard to Find AI in SMEs: A Survey from the Practice and How to Promote It
615
terviewees stated, that AI has nothing to do with intel-
ligence, but can solve some problems more efficiently
and effectively than human beings can do.
2.2 Usage of AI in Manufacturing
We will now show a summary of selected results, ex-
plain them briefly, and share some implications.
The first noticeable fact based on the given an-
swers is, that only 4% of the interviewees stated
that they have personal experience with AI. Only 5%
stated that they are currently using AI in manufactur-
ing. On the other hand, 67% of the interviewees be-
lieve that AI has - respectively would have - a positive
economic impact (see Fig. 1).
In this context, it seems to be of interest to figure
out the reasons, why so little companies are using AI
in manufacturing. 24% of the interviewees stated, that
their company is too small for AI. 5% stated that there
is not enough potential for improvement by using AI.
Since several companies have revenues between 30
and 50 million Euro, it is surprising that many inter-
viewees think their company is too small for using AI
or has not enough potential for improvement.
One of the challenges in particular in SMEs seems
to be a lack of expertise in the field of AI. On the other
hand, there is more than one-fifth that saying that their
company is currently evaluating the potential use of
AI. At least SMEs seem to be sensitized and try to fig-
ure out if the implementation of AI in manufacturing
makes sense. Overall, it seems that SMEs are slowly
catching up but have still a long way to go due to a
lack of resources and experience in AI.
2.3 Benefits of AI: Is It Measurable?
Most of us would hopefully agree, that it only makes
sense to implement and use new technologies and
methods, if the economic outcome can be objectively
measured and if it helps you staying competitive. To
our surprise, only 5 % of the interviewees
1
stated, that
they measured the economic impact of AI in their
company.
This is a critical point here seems to be the fact,
that only very few companies measure the economic
success of AI. But where is the sense in implementing
AI, not knowing if there is a concrete positive impact
and how big this impact is in terms of savings or
increased profits?
Let’s look deeper into the challenges of measur-
ing the success of AI in manufacturing by using pre-
dictive maintenance as an example. Predictive main-
1
Comprises only people working in companies, that im-
plemented AI solutions in manufacturing.
tenance is supposed to prevent unplanned downtime
of machines in manufacturing processes by using ma-
chine learning. The overall goal is to alert as to what
is needed to avoid stoppages of production in the fu-
ture.
Predicting the future seems to be a pretty am-
bitious goal. How many of you think that anyone
or any algorithm or any software solution is able to
predict the future? Generally, it is not possible, of
course. The more degrees of freedom a system has,
the worse is the predictability, because it is impossi-
ble to capture “all” data that have or might have an
influence. For example, the temperature, machine vi-
brations, humidity, quality of raw material, utilized
capacity, dust, the age of machines, and the quality of
spare parts. This list would be almost endless if you
tried to capture “all” data. Not using “all” data would
presume, that you know in advance, what data to col-
lect, and what data are unnecessary. Furthermore, the
more data are captured, the more data are needed for
a precise model. Since the system is dynamic and the
behavior might change over time, in real-world sys-
tems it is impossible to get enough observations to
learn a model in all stages. However, for specific sys-
tems, predictions can be made within a certain range,
as in (von Birgelen et al., 2018) the condition of a sin-
gle blade of a machine can be identified and a better
point in time for maintenance can be predicted, com-
pared to what humans can do. But this is not a free
ride for applying predictive maintenance. A holistic
evaluation has to be done for every use case.
Based on the interviews, it seems nothing else
than sort of a self-fulfilling prophecy that AI has a
positive economic impact. However, it is difficult
to evaluate whether or not predictive maintenance
reduces machine downtimes and at the same time
saves cost for maintenance. Let us explain that a bit
more accurate: Overall, predictive maintenance usu-
ally reschedules the point of maintaining machines,
which might be shifted to an earlier point in time to
prevent machines from unintentional stoppages. If
you maintain a machine based on the suggestion of
an algorithm earlier then you would have done it in
the past by using regular maintenance schedules, how
can you say that this particular machine would have
really had an unexpected downtime without the use of
predictive maintenance? How can you definitely say
that maintenance based on predictive maintenance is
better than regular maintenance programs? How can
you definitely say that changing e.g. wear parts based
on suggestions of predictive maintenance solutions is
better than regular maintenance programs? And fur-
thermore, how can you be sure that it is more cost-
effective to rely on predictive maintenance? The an-
ICAART 2021 - 13th International Conference on Agents and Artificial Intelligence
616
Figure 1: Results of the interviews.
swer is: In many cases, you simply can’t tell. And that
might be one reason that most of the companies have
no calculations, or at least no proven about savings
or profit increases with regards to predictive mainte-
nance.
One conclusion might be, that it is good to have
adequate support from AI, but that it is still helpful
to scrutinize the result and use your own (real) intel-
ligence, before making any decisions with regards to
maintenance in manufacturing. Not fully giving up
our position in the driver seat in favor of AI might be
a good advice in the long-run. So use the benefits of
AI, but be at least a bit cautious and alert of how far
you (blindly) rely on AI in manufacturing.
3 SOLUTIONS TO SUPPORT AI
IN SMEs
In this section, we introduce strategies to support and
foster AI applications especially in SMEs. Therefore,
we identified three main aspects: Usage of the term
’AI’, easy application of AI, and concrete determina-
tion of its benefit.
3.1 Differentiated Usage of the Term AI
As outlined in section 2, there is no common and gen-
erally accepted definition of the term ’AI’. Further-
more, AI and ML are often seen synonymous. Addi-
tionally, the terms are just frequently used for market-
ing purposes to promote a product or a whole com-
pany as being innovative and up-to-date. All this
makes it difficult to use the term ’AI’ correctly and
in the right context, especially for people that do not
have deep knowledge about AI. Furthermore, many
people are not aware of the difference between use
cases (’the problems’ to be solved) and the solution
itself. AI is not the use case, it is just one possible so-
lution. But with the hype of AI, it seems that the use
case is not important. Important is that the solutions
include AI.
However, as far as the community is not able to
provide a common definition, it is not possible to al-
ways use the term in the right context. The contri-
bution of the scientific community should be a more
stable and functional definition of AI for the indus-
try sector. Nevertheless, if the definition is available,
the community has to apply it properly. This includes
companies that want to promote their products as well
as the research institutes that promote their work. Ev-
erybody in the community should clearly distinguish
between the ’underlying problem’ and solution’. If
the tackled problem has been solved, the quality of
the result is the crucial point, not if AI is part of the
solution.
3.2 Easy Application of AI
Hurdles for the application of AI are, according to the
interviews, the missing expertise, costs/amortization
time, and the size of the company, which might be
interpreted as missing infrastructure. Certain tools
for AI and especially machine learning, such as
R (Ghatak, 2017), the Python library TensorFlow
(Abadi et al., 2016), or ML.NET (Ahmed et al.,
2019), are available and basically relatively easy to
use. But these tools just provide algorithms. Some
important and time-consuming steps, such as data ac-
quisition, pre-processing, and the algorithm configu-
ration has to be implemented or adapted by the users.
Even if the algorithms are available, their application
requires a much deeper knowledge.
Some approaches try to automate machine learn-
ing (Auto-ML), e.g. TPot (Olson et al., 2016) or auto-
sklearn (Feurer et al., 2015). Such methods can be
helpful by selecting and optimizing the selected algo-
rithms and their configuration, but there is still an ini-
tial effort to get the data and combine them with the
used methods. There are first research projects that
Why It is Hard to Find AI in SMEs: A Survey from the Practice and How to Promote It
617
address these issues, such as ManuBrain (Burggr
¨
af,
2020) or KOARCH (Bunte, 2020). In KOARCH, a
Cognitive Architecture for Artificial Intelligence in
Cyber-physical Production Systems (CAAI) has been
introduced (Fischbach et al., 2020). The CAAI does
not only automate the selection process of algorithms,
but it also selects the whole pipeline of data prepro-
cessing, modeling, and model usage. Furthermore,
if there is sufficient knowledge about the respective
production plant, it is possible to automatically adapt
production plant parameters and create a closed-loop
application, e.g. for optimization. If the production
plant provides OPC UA server, the CAAI has simply
to be connected to these servers and a declarative aim
has to be selected, e.g. ’energy optimization’. Due
to the usage of virtualization, it is easy to set up the
system and prepare its application. A graphical user
interface can be integrated, which enables the usage
of CAAI without programming skills. Nevertheless,
the CAAI does not aim to replace AI experts. It is
seen as a reasonable extension since it is likely that
AI experts might find better solutions. Nevertheless,
such approaches are a good starting point for SMEs,
which can be used to get in touch with AI technology
and evaluate the benefits without unreasonable costs.
To conclude, SMEs do not need algorithms that
have a slightly better run time or outperform another
algorithm on an artificial data set. From their per-
spective, new algorithms only make sense if there
are problems identified that cannot be solved with
an existing one. SMEs do often not have the basics
for the application of AI, e.g. infrastructure and ex-
perts. They might need external support during the
first steps that have to be enabled by solutions with
relatively low effort and low preconditions regarding
the expertise and infrastructure.
3.3 Determine Benefit
Based on the results of the interviews, we could iden-
tify two groups with regards to the determination of
AI benefits. The first group is convinced of the benefit
of AI, its simple presence is obviously enough to sat-
isfy them, since they have a strong belief in AI tech-
nologies. The other group is per se skeptical and does
not believe that AI can be beneficial for their business.
Somehow or other, it is improvident not to evaluate
the concrete benefits of AI. If you don’t measure ben-
efits, how can you sell’ your solution as being suc-
cessful?
As mentioned above, it is not always easy to eval-
uate the benefit. So, it is comprehensible that compa-
nies do not create costly studies before they integrate
AI into their machines, just to have a reference value
for evaluation. However, this is seen as a precondition
to evaluate the benefit. As a result, it is mostly un-
known which processes can be supported by AI and
which are not predestined for it so far. It would create
a huge benefit if evaluation data were available to con-
vert from try-and-error to a comprehensible decision
based on reliable knowledge and data.
From a scientific point of view, it is necessary
to have a broad knowledge base to evaluate the po-
tential benefit of the usage of AI upfront. This re-
quires that especially companies, research institutes,
and universities need to work closely together, gather
relevant data, and publish the concrete improvements
being achieved with AI, but also the hurdles and chal-
lenges they are faced. But even if companies might
have such data available, they are mostly reluctant
to share them with a broader community because of
confidentiality and with regard to their competitors.
Furthermore, the benefit might be company-specific
and thus must be described in detail to gain leverage.
For example, optimization of a production module in
a sequential production line provides a large bene-
fit if it is the bottleneck of the production line. The
same optimization in another company can be with
less or without benefit if the module is not the bottle-
neck. Another hurdle might be, that people are not
willing to share failures with regards to implementing
AI solutions. But from a scientific perspective, it is
also important to know what doesn‘t work well and
especially why. One contribution to solve this issue
could be a clear guideline, how an evaluation should
be done, and how to balance the need for confidential-
ity of gathered data and the need to share those data
with the AI community. To gain more efficiency and
effectiveness companies can cooperate e.g. with uni-
versities and set up joint research projects related to
concrete business cases. Those joint projects have a
good chance to be funded e.g. by governmental or-
ganizations. Furthermore, companies can also benefit
from the knowledge of researchers and experts at uni-
versities. In the end, it is a win-win situation.
4 BEST PRACTICES
There are several examples of the successful AI ap-
plications in industries, that we introduce in this sec-
tion. We chose anomaly detection and optimization
as best practice examples. Besides these areas of ap-
plication, there are many more use cases that can be
solved with AI, such as decision support, extending
the pay per use to pay per stress, which considers the
wear of a machine, or use AI for the generation of test
cases. All presented use cases have been implemented
ICAART 2021 - 13th International Conference on Agents and Artificial Intelligence
618
by members of the authors’ institutions.
4.1 Use Case 1: Anomaly Detection
Anomaly detection is a good first use case to apply
AI. The goal of anomaly detection is to observe the
plants’ behavior and detect changes and variations in
that behavior. However, the results are usually shown
to the operators, but no further processing steps, such
as scheduling maintenance or diagnose the root cause
of the anomaly are performed. This further process-
ing requires much additional effort for e.g. data label-
ing and modeling. Experienced operators can be well
supported by an anomaly detection algorithm, since
it is sometimes not obvious to identify the assignable
cause of an anomaly. By knowing the anomalous sig-
nal, operators can mostly identify the cause of the
anomaly by themselves. Overall, anomaly detection
can support operators to identify undesired states of
the machine, detect performance drifts, and ensure the
product quality.
We implemented anomaly detection functionali-
ties to a production plant in the food industries. Since
food is a sensitive product, it is important to identify
malfunctions in production as early as possible to not
risk contamination. For each module in the produc-
tion plant, a model of the normal behavior was learned
by the application. Hybrid automaton were used for it,
as introduced in (Niggemann et al., 2012). The model
enables the differentiation between discrete, contin-
uous, and time failures and thus covers all relevant
issues. Since the underlying process contains fast-
changing signals, it was a challenge to acquire the
data with an adequate sampling rate. However, we
were able to monitor the production plant and identify
unexpected behavior, so that the operator can be ade-
quately supported. The used approach was perfectly
matching the companies’ need for additional observa-
tions of their plant to maximize operating safety. The
key for the project was a well-defined use case, where
the benefit of the AI technology can be verified eas-
ily, as well as a bunch of algorithms that could be eas-
ily tested to identify the most suitable one. However,
the easy application of AI, as described in section 3.2,
would have reduced the effort of experts significantly.
4.2 Use Case 2: Optimization
Optimization is a broad field. In this respective use
case, we focus on the optimization of industrial equip-
ment. Typically, optimization is used to improve
product quality, reduce resource consumption, or in-
crease throughput. In many cases, the optimization
has a direct impact on profitability, which makes it
very interesting for companies.
In our specific example, the resources of an indus-
trial cleaning process were optimized. This process
needs water, energy, and an operator. Depending on
the local parameters, e.g. type of pipe, amount of dirt,
and type of dirt, the operator has many parameters
which he can adapt. Differences between operators
have been identified, some clean with more water and
high pressure only once, where others use less water
and less pressure but clean multiple times. The aim
of this project was to support the user to identify the
best matching parameter for the current cleaning task.
Since it is an individual process, the challenge was to
get reliable data, such as the size of the pipe or the
accumulation of dirt. Because these values are given
by the operator, the data contains uncertainties. To
deal with this, a Bayesian network was used to per-
form the optimization. Therefore, the basic structure
was modeled by experts and the probabilities between
the notes are learned from the collected data. Further-
more, a rule-based system was implemented to sup-
port the decision process. Overall, the system can
now support the operator by identifying the best pa-
rameters for the respective cleaning process. Details
of the solution can be found in (Shrestha and Nigge-
mann, 2014) and (Shrestha and Niggemann, 2015).
The key to this project was again a well-defined use
case with a clearly planned benefit. The Bayesian
network was created by experts. Automated methods
suggested in section 3.2 would probably not reach the
same good results.
5 CONCLUSION AND FUTURE
WORK
The main results of the 411 interviews are that there
are not many applications of AI in SMEs and the AI
expertise in SMEs is still low. The benefits of AI are
not often really measured, so most people just blindly
trust that AI is beneficial. To support the usage of
AI, the term should be defined properly in the con-
text of automation systems, the usage of AI has to
be simplified, and the benefit has to be measured, to
have a solid basis for decision-making. However, AI
in SMEs can not only be successful, it is also man-
ageable as shown by the two best practices. The best
practices also show that the suggested solutions can
help, but they are not panacea.
Due to the method of the interviews, there are
some limitations: The interviewees were mainly from
SMEs and working within production. The compa-
nies were predominantly machine and plant construc-
tion companies. So, the introduced results in section 2
Why It is Hard to Find AI in SMEs: A Survey from the Practice and How to Promote It
619
can be understood as a snapshot of the practice that
might differ in different industry sectors.
There are additional points that should be ad-
dressed in future work. Especially the definition of
AI and the measurement of its’ benefit has to be done
by a broader community in a joint effort. But not only
the definition is important; everyone can start right
now to use the term AI more carefully and question it
as needed. To ease the usage of AI, it can be supported
through projects such as ManuBrain or KOARCH.
Even if these projects follow a general idea, they fo-
cus on specific aspects of the (semi-)automatic appli-
cation of AI.
Properly used, AI is beneficial to companies and
can actively support problem solving in different ar-
eas of manufacturing.
ACKNOWLEDGEMENT
The work was supported by the German Federal Min-
istry of Education and Research (BMBF) under the
projects ”KOARCH” (funding code: 13FH007IA6).
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