Thank you so much for joining us in this interview series. Before we dive into our discussion our readers would love to “get to know you” a bit better. What do you think makes your company stand out? Can you share a story?
Freudenberg invests heavily in research and development — the company is all in when it comes to strategically using AI and identifying areas to implement it in our day-to-day processes to increase efficiencies and develop in-depth reports on processes and procedures that can evolve and grow as our organization does the same. Solidifying a strategy around R&D and what that looks like in your organization is extremely important, so Freudenberg looks to do just that.
An example of how we’re prioritizing AI integration at Freudenberg is we are investing in strategic programs and building a team within our Freudenberg Technology Innovation group that will focus solely on AI and evaluating which projects would benefit from AI integration. This team will be dedicated to weaving AI into our procedures in all phases of our work, starting with product development, through production and customer service. That will help us stay ahead of the curve and keep our finger on the pulse of what’s new with the technology and how that can be applied to our day-to-day practices and procedures.
Beyond that, helping to establish a positive outlook and view on AI from an internal perspective is vital to ensure the team’s buy-in. Freudenberg doesn’t shy away from conversations surrounding AI and its impact, we lean into it. Hopefully, this will help our teams feel comfortable with new technologies — demystifying some of those hesitancies by being upfront.
You are a successful business leader. Which three-character traits do you think were most instrumental to your success? Can you please share a story or example for each?
Adaptability: You must look at technology as a resource and not as a threat. Those failing to adapt to the future of AI will be left behind. My role is built both on my belief that AI is the future and an understanding that the processes and procedures can be improved through the application of AI. Small changes are happening every day, and we must embrace them with a vision that meaningful changes will result in the right outcomes. For that reason, we need to cultivate an environment that makes AI an inviting agent of progress.
Curiosity: There is always something new to learn no matter where you are in your career; That desire to learn and challenge yourself to step outside your comfort zone is the path toward growth. In fact, that played a major part in why I wanted to join Freudenberg. The company is celebrating 175 years in business and our overall theme to celebrate this milestone is “Curious since 1849.” It is special when you can find a company that shares your belief in not being afraid to ask the questions that will lead to the next big thing or invention.
Intuition: As with the adoption of any new technology, there will be trial and error, especially at the beginning. You need to trust your intuition and the process to get to your end goal. What I have come to learn and what I educate others on is the fact that AI is a great tool, but it must be leveraged alongside human intuition. In my work with my team, they know AI will best serve our company and the world at large when it is combined with our human knowledge and expertise. The very nature of implementing AI is not to get the solution on the first try, but rather to let it help us identify ways to streamline and refine processes moving forward.
Let’s now move to the main point of our discussion about AI. Can you explain how AI is disrupting your industry? Is this disruption hurting or helping your bottom line?
It is certainly creating new pathways and efficiencies that are disruptive to traditional methods; However, when properly integrated, it can only improve workflows and processes while helping to speed up the discovery and development of new materials. Ultimately, AI is helping the bottom line with some refinement and careful management, while also helping the top line by expanding the market with new materials — as it can bring tangible solutions for products and production into view quicker and more efficiently. Tasks that have taken humans excessive amounts of time can be passed on to AI, so employees can spend time on innovation and more value-added tasks.
It’s also helpful to look at the unique ways AI can benefit your organization. Common AI software like ChatGPT is truly just the beginning of what this technology can do holistically within companies. AI can help with succession planning and knowledge transfer as individuals retire or leave a company, minimize worker injuries and dangers with the use of robots and highly advanced machinery and aid with preventative maintenance by keeping an eye on any discrepancies along the production line. These examples can only benefit the bottom line and business. AI can also very easily save organizations money in the long-term with AI aided product development, a process which requires less testing.
So, while yes, it’s no secret the introduction of AI is disruptive to our industry, it can be seen as a positive disruption that improves efficiency.
Which specific AI technology has had the most significant impact on your industry?
As a global technology company with facilities all around the globe, many forms of AI are helping us streamline processes and enhance knowledge sharing. For example, manufacturing is one industry we serve. AI’s capabilities with data have had one of the greatest impacts on the manufacturing industry — as they can manage numbers and data at maximum efficiency.
In fields that work with advanced data and numbers regularly, generative AI technologies can prove very valuable in taking that data, organizing it and delivering outputs in a short amount of time using advanced algorithms. For example, we’ve developed in-house capability to control our production equipment using AI driven methods that use historical and current data to take corrective actions with the aim to reduce waste, eliminate quality issues, etc.
Can you share a pivotal moment when you recognized the profound impact AI would have on your sector?
It’s no secret AI can do a lot of things, but we have found it to be quite useful in Automatic Design Optimization. When designing a battery cell cap at Freudenberg, there were many scientific and technical requirements surrounding polymer components, metallic materials and design features. We leveraged AI to develop the most optimum product design. Leveraging the technology saved our team money and time in going through our past data, potential outcomes and various factors like cost of components, carbon footprint, etc. that would impact the product; In fact, it took less than half the standard design process time.
How are you preparing your workforce for the integration of AI, and what skills do you believe will be most valuable in an AI-enhanced future?
We invest heavily in professional development and training to ensure our workers are up to speed — from hands-on sessions to online courses. In addition, it’s crucial to train employees to properly manage data, as bringing AI into the data management process presents an inherent security risk, which can be combatted when the proper tools and guidelines are in place.
Data management is becoming the most valuable skill. Knowing how to plug in the right information, what data and/or algorithms to ask for and how to do it all without compromising organizational intel is a genuine skillset. Additionally, from a softer skill perspective, adaptability and eagerness to learn both will prove beneficial as AI continues to develop and advance. Sitting back without keeping up to date on the latest advancements will likely prove detrimental as AI continues to play a pivotal role in almost every industry. On the other hand, understanding the developments of AI allows employees to harness their abilities, acquire new skills and adapt to potential changes.
What are the biggest challenges in upskilling your workforce for an AI-centric future?
Ensuring data is managed and security isn’t compromised is one of our biggest challenges. Data and intelligence are extremely precious to any organization, and employees should adopt the mindset that data is currency. Data of all types should be collected, and once collected, handled with care. This requires a lot of training and dedication from employees to adhere to guidelines laid out by organizations themselves; Working with AI runs all the way up and down the chain.
At times, it can be hard for companies to get their employees’ buy-in — which can impact how effective upskilling is. At Freudenberg, we leverage AI to make jobs easier, which allows our employees to expand their skillsets and add new tasks that create opportunities for more professional growth.
What ethical considerations does AI introduce into your industry, and how are you tackling these concerns?
This is a bit two-fold. There is the question of how much you integrate AI into your processes and the security around that, and the other element is how much transparency you share about those processes.
While it seems like AI has been around for some time now, it is still in its early stages. The emergence of tools like ChatGPT further raises ethical use of AI issues. So, it is likely we’ll see continued conversations on this topic both within organizations and more broadly in the industry itself.
Addressing ethical considerations often lies in training, but also open conversations about the risks involved and how to avoid them.
What are your “Five Things You Need To Do, If AI Is Disrupting Your Industry”?
- Train your employees.
As we’ve discussed, training is crucial. Many individuals do not know how to properly utilize AI, which can pose risks to an organization when it comes to properly managing data, intelligence and knowledge. Regular training and knowledge-sharing is vital. Failure to properly train your employees now will more than likely result in your company falling behind the competition, which would take excessive amounts of funds and resources to try and recover from.
2. Keep an open mind.
Work to keep an open mind as to how AI can be a benefit. Embrace new technologies and acknowledge that there can be more than one way to do things. This mindset will position you and your team for long-term success.
3. Stay up to date on the latest developments.
Shying away from the latest news will leave you and your organization behind, allowing other companies to innovate quicker — which can have a negative impact on business. Consider creating an AI task force to bring together a team dedicated to researching and bringing new ideas to the table.
4. Consider capabilities you may not have thought about.
AI has become a more common process to help alleviate more administrative tasks from employees, freeing them up to take on more creative tasks. The opportunities with AI are endless as it can help retain knowledge, find new materials, design new products and more. Ask your team what tasks consume most of their time in a day and begin to explore whether AI can help in those areas. Even if you can find a solution that saves employees 15 minutes every day — that adds up to more than 65 hours (about two and a half days) a year for each employee.
5. Remember data is precious — anything and everything is important to make note of.
Data is your most valuable asset, and AI can take that data and create outputs and algorithms very efficiently when used properly.
What are the most common misconceptions about AI within your industry, and how do you address them?
For years, we have heard the phrase “AI will replace humans.” Yes, it will create nuances we haven’t tackled before, but the only threat to job security is a refusal to learn about AI and leverage it to improve. AI is here to stay, and sooner rather than later, it will be a natural element in most industries. Rather than AI taking over jobs, it will make them easier. For example, leveraging robots on a production line brings employees to the back-end — where they ensure production is running smoothly and can focus on how to continually improve processes.
To ease these concerns, we work to communicate with our employees exactly where and how AI is being leveraged so they feel comfortable with the technology and the ways our organization is using it. We also foster an open-door policy. If there are concerns, we want to hear about them and work to educate our employees on the steps in our process and the value they add to our organization and customers.
Can you please give us your favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life?
Early on in my career, I loved the sentiment from Albert Einstein: “Imagination is more important than knowledge.” In this field, maintaining creativity and a forward-thinking mindset is crucial. As my career has taken me from pure academic research to a role that also includes business leadership, I also enjoy the quote: “Vision without execution is hallucination” from Thomas Edison. Especially through the lens of AI and the impact it plays in our industry — applying new technologies and innovations, rather than shying away from them or just thinking about how they can be implemented — is the way to stay ahead of the curve.
As someone steering the ship, what thoughts or concerns often keep you awake at night? How do those thoughts influence your daily decision-making process?
We must ensure that AI is implemented effectively — so, making sure employees understand how to use tools properly, ethically and responsibly, holding training to solidify our team’s capabilities with the technology, etc. I often ponder how we can really get organized around AI and its benefits in the best possible way — immersion, AI literacy and management. It’s a very important time for the technology industry.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.
I’d want to start a movement around change management and AI literacy; Teaching folks that AI is going to make an impact, and here’s how it can be applied. Our teams are doing just that — really working on AI literacy, but I’d love to help everyone feel open to AI. You don’t need to know everything about it, but just have an openness to learning about the benefits, uses and capabilities.
Thank you for the time you spent sharing these fantastic insights. We wish you only continued success in your great work!