The Asset Journal

The Asset Journal, Volume 19, Issue 2

This volume’s topic centres about Artificial Intelligence (AI) and Asset Management. The proliferation of AI in all walks of life means necessarily that we need to deal with and understand more thoroughly what this means to organisations and to individuals. The questions arising in considering and adopting AI are many, for me they are chiefly revolving about the veracity of information we generate. How will we use it? How will we govern the underlying data? How good are answers with incomplete data sets? Do we rely on an organisation specific AI environment or do we use outside data as well? I am sure you have similar and more questions for yourself.

And how will AI influence or improve Asset Management? The answers to these questions can significantly shape the future of industry and utilities. AI should have the potential to enhance data accuracy (by showing gaps), streamline decision-making processes, and optimize asset performance. We can imagine that by leveraging AI in Asset Management, we can anticipate maintenance needs, reduce operational costs, and ultimately may be able to extend the lifespan of our assets. I am sure you asked this of your AI assistant. The answer I got when asking about AI and Asset Management this question was that AI will transform the Asset Management Landscape. No doubt that is true, as the theory at least is that AI enhances Risk Management, contributes to better decision making, increases operational efficiency, enables predictive maintenance and supports strategic decision making. All key aspects of good Asset Management, especially decision making.

I guess we can all agree that AI has the potential to improve routine tasks, which may centre around simplifying Operator rounds, possibly automating invoice generation and payments and many other routine tasks. But when it comes to more complex tasks, such as maintenance optimisation, requirements management, systems performance, investment decisions and particularly safety and risk management, how can we trust the AI recommended actions? Considering that we often have incomplete data sets and widely varying data, what is the correct answer?

And of course, we will have to consider how much technic al expertise we will require in all aspects of the organisation to validate what AI identifies. Will the future organisation be made up predominantly of Data Scientists? Or is subject knowledge still required?

As we are still at the beginning of the AI revolution, I am sure many of these questions will be resolved and become ‘Business as Usual’. As we also look towards the Asset Management Landscape competencies, how many can we really replace with AI? The following paragraph is one more ‘friendly’ answer to how AI will influence Asset Management, but I got different answers asking the same question a few times:

“AI is transforming organisations profoundly, enhancing decision-making, improving operational efficiency, and driving innovation. By embracing AI technologies, businesses can stay competitive, deliver superior customer experiences, and navigate the challenges of the modern business landscape. As AI continues to evolve, its impact on organizations will only grow, making it an essential component of future success.”

We just need to be sure to understand the magnitude of this new approach as it will, like all the other Industrial Revolutions, wide reaching changes in organisations and the training of the workforce of today and the future. My thoughts are about AI’s transformative potential in Asset Management is significant, but it requires careful consideration and integration. We trust that this volume of “The Asset” will provide some ideas for your journey into the future. Your feedback is welcome, especially for his subject that is set to change our outlook in Asset Management.

theasset@amcouncil.com.au