Research shows digitalization boosts productivity and efficiency in the manufacturing sector, suggesting necessary adaptations for SMEs and larger firms.
The global manufacturing sector is undergoing a profound transformation driven by the rapid technology advancement referred to as digitalization. These technologies provide countless gains in productivity, efficiency and sustainability for businesses whilst simultaneously has disrupted a large portion of the preexisting traditional business models and labor markets. Therefore, this research aims to examine the relationship between rapid digitalization and its effect on the manufacturing sector. Accordingly, evidence suggest that the implementation of digital technologies has tendered beneficial aspects for businesses. The ability of SMEs to compete against larger corporations and the energy efficiency in the production line are increased. In addition, numerous changes in the manufacturing sector are called to action, ranging from shift of inner structure to the development of new technologies as firms seek to gain a decent market share in the market. Consequently, relevant policy suggestions have been made to propose a number of potential plans for firms in the future to remain advantageous in the market. Regarding to the long-term socio-economic effects of AI, in-depth studies is needed so that further evaluation and analysis can be said.
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XU Xiaoliang (2025) studied this question.