How AI is reshaping Belgian operations and manufacturing industry

Download the study

As part of our tracking of megatrends and their impact on the manufacturing industry, PwC recently surveyed over 400 operations executives in diverse sectors like manufacturing, transport, logistics and retail from 30+ countries across Europe, the Middle East and Africa (EMEA), including over 50 responses from Benelux. 

While our findings reveal a strong belief in AI’s potential to enhance profitability, with nearly 60% of participants in Benelux expecting at least a three-percentage point increase in operating profits by 2030, it isn’t as strong as the 68% with similar beliefs across the wider EMEA region. The majority of this difference comes from the participants who believe the increase will be five percentage points or more (30% in Benelux vs. 40% in EMEA). The more guarded profit projections in Benelux could be due to regulatory compliance costs related to the EU AI Act which the Digital SME Alliance warns could add hundreds of thousands of euros to a typical Benelux SME’s project budget, stifling innovation and favouring minimal-viable pilots over scaling.

Compared to manufacturers across EMEA, fewer Benelux manufacturers report that they are already achieving significant financial benefits and ROI (2% in Benelux vs. 4% in EMEA), underscoring a relatively low AI maturity level. Similarly, fewer Benelux manufacturers have moved beyond the initial pilot phases (30% in Benelux vs. 40% in EMEA). When it comes to AI Operations Champions, Benelux scores higher than the EMEA (10% in Benelux vs. 8% in EMEA), but also has significantly more companies with an AI novice maturity level (48% in Benelux vs. 37% in EMEA).

The most cited obstacles for AI maturity in Benelux are data quality, cybersecurity and skills shortages. Unfortunately, these obstacles are larger for Benelux’s export-oriented SMEs that often work with legacy systems, reducing potential benefits.

As over 90% of organisations in Benelux are classified as an SME, they tend to face tighter cash resources and steeper relative costs when adopting advanced technologies. This results in markedly smaller AI budgets than those enjoyed by the large-company mix that dominates the pan-EMEA statistics.

Our research underscores that the rewards of AI integration are significant. AI is enhancing decision-making, boosting productivity and flexibility, improving efficiency, reducing operational and personal costs, and increasing sales and delivery volumes. AI Operations Champions are reaping the most benefits as they effectively scale and integrate AI across their operations. 

Within Benelux, 72% of employers struggle to fill technical roles. This severe skills shortages limits organisations’ ability to execute complex AI programmes, nudging them towards cheaper, lower-scope projects that require less technical knowledge and often deliver fewer benefits.

The most prominent use cases in Benelux are in sales and marketing, with other notable use cases in the manufacturing sector, especially the industrial process industry where it is used for quality control, product design, documentation and work instructions. There is also further potential for AI use cases connected to virtual and 3D product prototyping.

Examples of this in Benelux include forecasting applications and predictive models at Reynaers, predictive analytics at a chemical company, an AI vision-based quality inspection system at Kapernikov and the AI robotic ecosystem. These use cases highlight how companies that have already taken strong steps forward on their digitalisation journey are now using their existing data to create additional value.

Across EMEA, the research shows that supply chain use cases are the most widespread. However, there are a number of differences across industry sectors which are explored in detail in the full paper, along with practical examples. For example, the automotive industry shows particular strength in production use cases, while the pharmaceuticals, life sciences and medical technology sectors are highly active in the R&D space.

Cybersecurity, quality and cost of software emerge as the major hurdles to AI adoption in Benelux. Additionally, as previously mentioned, organisations in Benelux often run on legacy systems which will require a large investment in order to upgrade the required data infrastructure and architecture before implementing GenAI. Without proven gain to convince leadership, this is currently an insurmountable hurdle for many organisations.

Furthermore, in organisations in Benelux with an AI policy, only 20% have a centralised AI team responsible for all initiatives, while more than 60% implement AI tools per department or project leading to siloed solutions.

Our research highlights four core principles that are critical to getting the most out of AI. The full paper discusses these principles in more detail, along with examples of what Operations Champions are doing to drive successful AI implementation.

AI is transforming manufacturing industries. The question is no longer if or how it will impact operations, but rather how fast. Operations leaders must make bold AI investment decisions now. Revolutionise your manufacturing business today and gain a competitive edge.