At this year's Manufacturing Matters! event, I had the privilege of discussing a topic that has rapidly transformed the technological landscape: Artificial Intelligence. Just a few years ago, at a Waukesha County Business Alliance meeting, only a handful of attendees had heard of ChatGPT. Today, AI is everywhere in manufacturing discussions, bringing both tremendous opportunity and considerable noise.
Cutting Through the AI Hype
During our Executive Briefing session at Manufacturing Matters!, we aimed to cut through the hyperbole and provide a practical framework for manufacturing leaders considering AI adoption. The pace of AI development has been relentless, making it essential for Wisconsin manufacturers to understand what really matters for their operations and what doesn't.
Our Strategic AI Approach at First Business Bank
At First Business Bank, we're approaching AI with a deliberate strategy. Our guiding philosophy acknowledges AI's potential to dramatically improve performance while maintaining our human-centered culture. We focus on applications that provide competitive advantage through four specific avenues: increasing sales, improving cycle times, reducing risk, and decreasing expenses – or alternatively, maintaining current costs while scaling up to achieve operating leverage.
When evaluating potential AI applications, our team looks for manual repetitive tasks, areas with substantial data that could benefit from error reduction, opportunities for cost savings, value creation, risk mitigation, or process acceleration. This approach has led us to implement several practical applications, for example:
- Automated financial spreading allows us to efficiently process client financial statements, freeing our credit analysts to focus on higher-value consultation.
- Our entire organization embraces Microsoft Copilot, allowing teams to create presentation decks and meeting transcripts more efficiently.
- Real-time identity verification improves our risk management capabilities without compromising the client experience.
Knowing Where AI Doesn't Belong
Importantly, we've recognized areas where AI doesn't align with our culture and values. We maintain human judgment in loan underwriting decisions rather than relying on scoring models or algorithms. Employee selection within our hiring process remains a human-driven process, and we're committed to personalized client service rather than chatbots.
We've also discovered that partnering with specialized providers offers significant advantages over developing solutions from scratch. For a regional bank like ours, AI serves as a powerful equalizer, leveling the playing field with much larger institutions.
The Business Case for Thoughtful AI Adoption in Manufacturing
For Wisconsin manufacturers, thoughtfully applied AI can drive tremendous results – from accelerating cash cycles and reducing borrowing costs to identifying new markets and optimizing capital allocation. Manufacturing operations that effectively leverage these tools will enjoy greater productivity, improved access to capital, and meaningful competitive advantages, positioning them to adapt and thrive in our ever-changing economic environment.
As your banking partner, we recognize that manufacturers demonstrating these attributes foster stronger banking relationships, creating a foundation for mutual growth and success. The message is clear: while AI implementation must be strategic and aligned with your organizational values, ignoring its potential puts your enterprise at significant competitive risk.
My concluding reflection from Manufacturing Matters! is that while the path ahead contains unknowns, Wisconsin manufacturers are well-positioned to transform these challenges into opportunities. With our collaborative ecosystem of educational institutions, industry organizations, and financial partners, I'm confident our manufacturing community is up to the challenge.
