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How Manufacturing SMEs Can Turn AI Into a Competitive Edge

Without losing what makes them strong

Closing the AI gap is about driving competitiveness, resilience, and agility in an increasingly volatile landscape.

— Shinichiro (Shin) Nakamura, President, one to ONE Holdings

 Shin Nakamura, President of one to ONE Holdings Pte. Ltd. (o2Oh), has published a new thought leadership article on Horasis titled "Closing the SME AI Adoption Gap," offering practical guidance for manufacturing SMEs navigating AI adoption. 
 A recent OECD report cited in the article notes that 40% of large enterprises have adopted AI, compared to only 11.9% of firms with fewer than 50 employees. This gap threatens competitiveness and global economic stability, as SMEs account for two-thirds of jobs and over half of global GDP.

Shin outlines three principles for SMEs seeking to close the gap:

  1. Pursue both horizontal and vertical AI integration
    Apply AI to both core operations and cross-functional processes to strengthen supply chain resilience.

  2. Use AI as a strategic tool, not a cost-cutting shortcut
    AI investment decisions should focus on long-term competitive advantage rather than short-term trends.

  3. Build internal know-how and protect proprietary expertise
    Retain core knowledge internally. People-focused training and cross-industry collaboration help build sustainable AI capabilities.

"SMEs that take a strategic, people-centered approach to AI can strengthen resilience while preserving their unique operational advantages," Shin writes. "SMEs are an important driver of an AI-forward future where efficiency and speed are maximized."

To read the full article, visit Horasis.

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