The Potential Impact of Artificial Intelligence on Leadership in the Manufacturing Sector of Wales in the next decade

Abstract

Exponential growth in miniature technology and ubiquitous computing is revolutionising the manufacturing sector ranging from processes to supply chain management. Although smart technologies confer benefits, businesses are still sceptical to utilise them extensively, such as the reliability of AI being uncertain in different contexts of decision making. Along with opportunities, there are barriers to transitioning from a current to a smart and advanced manufacturing
system (Industry 4.0), including uncoordinated policies, lack of awareness, and cultural aspects in underdeveloped regions. The primary objective of this study is to investigate the potential impact of AI on leadership within the manufacturing sector of Wales. A mixed methods approach was adopted, consisting of semi-structured interviews with 22 higher management, 5 interviews with policymakers, and the collection of survey data from 101 participants working in various managerial roles within the manufacturing sector of Wales. Thematic analysis was employed to analyse qualitative data, while quantitative data was analysed through SPSS. This study identified a significant gap and indicated that the sector is currently in its developmental stage, most organisations are still operating within the industry 3.0 or implementing traditional manufacturing practices. Furthermore, this study provides a comprehensive contextual understanding of Welsh manufacturing within Industry 4.0 context, and identifies systemic deficiencies to enable evidence-based frameworks for AI integration within leadership practices. The study also identifies "systems of leadership" the most appropriate leadership styles to augment decision-making using AI in VUCA environments. The study highlighted the critical role of manufacturer leaders, policymakers and industry experts in overseeing, guiding, regulating and establishing guidelines for adopting and leveraging AI within the manufacturing sector of Wales. Thus, it is imperative to clearly define roles and responsibilities to implement effective AI-driven strategies that enhance the performance of leaders and organisations.

Date of Award	2024
Original language	English
Awarding Institution	Aberystwyth University
Supervisor	Sophie Bennett-Gillison (Supervisor) & Kyriaki Remoundou (Supervisor)