Manufacturing Leaders Harness AI to Tackle Labor and Skills Shortages

Honeywell and Caterpillar CTOs Say AI Can Ease Labor and Skills Gaps in Manufacturing At the Fortune Brainstorm Tech 2025 conference in Park City, Utah, Suresh Venkatarayalu, chief technology officer and president of Honeywell Connected Enterprise, and Jaime Mineart, CTO at Caterpillar, made a compelling case for the potential of artificial intelligence (AI) to alleviate labor shortages and skills gaps in manufacturing. According to Venkatarayalu, 20% of Honeywell's software code is now written by AI-assisted tools such as GitHub Copilot. However, this does not mean that the company has reduced its workforce by 20%. Instead, it has enabled developers to focus on more complex tasks, freeing up time for higher-value work. "We're not just automating tasks; we're augmenting human capabilities," Venkatarayalu explained. "With AI-assisted coding, our developers can spend more time on design, testing, and integration – the things that really require human expertise." Mineart echoed this sentiment, noting that AI is not a replacement for human workers but rather a tool to enhance their productivity. "We're seeing significant benefits from AI in areas like predictive maintenance, quality control, and supply chain optimization," he said. The use of AI in manufacturing has been gaining momentum in recent years, driven by advances in machine learning, natural language processing, and computer vision. According to a report by McKinsey, AI can boost productivity by up to 40% in certain industries. However, the adoption of AI also raises concerns about job displacement and the need for workers to develop new skills. Venkatarayalu acknowledged this challenge but emphasized that AI is not a zero-sum game where human jobs are lost. "We're creating new opportunities for people to work alongside machines," he said. The two CTOs' comments come as manufacturers struggle to fill labor gaps and adapt to changing workforce demographics. According to the Bureau of Labor Statistics, the manufacturing sector faces a shortage of over 2 million skilled workers by 2025. As AI continues to transform the manufacturing landscape, companies like Honeywell and Caterpillar are at the forefront of innovation. By embracing AI as a tool for human augmentation rather than replacement, they may be onto something big – not just for their bottom line but also for the future of work itself. Background The Fortune Brainstorm Tech 2025 conference brought together top executives from the tech industry to discuss the latest trends and innovations in technology. The event provided a platform for Venkatarayalu and Mineart to share their experiences and insights on the potential of AI in manufacturing. Additional Perspectives Industry experts agree that AI has the potential to revolutionize manufacturing, but there are also concerns about job displacement and the need for workers to develop new skills. "AI is not a panacea for labor shortages," said Dr. Deborah Logan, a leading expert on AI and workforce development. "We need to focus on upskilling and reskilling workers to work alongside machines." Current Status and Next Developments As manufacturers continue to adopt AI technologies, it remains to be seen how these innovations will impact the workforce. However, one thing is clear: AI has the potential to transform manufacturing in ways both big and small – from automating routine tasks to enhancing human capabilities. In the words of Venkatarayalu, "AI is not a replacement for human workers; it's an amplifier of their abilities." As manufacturers continue to navigate the challenges and opportunities presented by AI, one thing is certain: the future of work will be shaped by machines – but also by humans. *Reporting by Fortune.*