AI Expansion and Its Dual Impact on Manufacturing: Insights from MAN’s Corporate Strategist

Navigating Opportunities and Risks in the Digital Economy

At the 2025 edition of the Manufacturers Association of Nigeria (MAN) Media Personality of the Year Award and Presidential Media Luncheon, held on Wednesday, January 22, 2025, at MAN House, 77 Obafemi Awolowo Way, Ikeja, Lagos, Mrs. Kofo Akinkugbe, OON, Chairman of the Corporate Affairs and Strategic Planning Committee, addressed the pressing implications of artificial intelligence (AI) on the manufacturing sector.

Responding to the question on how well MAN is prepared to adapt to the era of advanced technology and a burgeoning digital economy, Mrs. Akinkugbe delivered a reflective analysis on the balance between innovation, workforce stability, and the absence of robust AI regulatory frameworks.

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AI’s Growing Presence in Manufacturing

Mrs. Akinkugbe highlighted that the manufacturing sector stands at the forefront of AI integration, benefitting from significant advancements that streamline production processes and optimize efficiency.

1. Transformative Opportunities:

• Productivity Boost: AI-powered automation has enhanced output while reducing production costs.
• Customized Solutions: Intelligent systems enable manufacturers to meet specific consumer demands with precision.

2. Looming Risks:

• Job Displacement: AI threatens traditional roles, particularly among low-skilled workers. “Reskilling must become a top priority to ensure no one is left behind in the digital economy,” Akinkugbe emphasized.
• Unequal Access: Smaller businesses face challenges in adopting AI due to high costs and technical expertise requirements.

Regulation: A Race Against Time

Despite AI’s rapid proliferation, Mrs. Akinkugbe noted that effective regulatory measures remain largely absent, constrained by political hesitations and the fear of stifling economic growth.

1. Lagging Frameworks:
The pace of technological innovation has outstripped regulatory preparedness. While international bodies propose ethical AI principles, implementation has been slow.

2. Governments’ Reluctance:
“Many governments hesitate to impose stringent rules, fearing they might hinder economic progress,” Akinkugbe stated, underscoring the need for balanced governance.

3. Industry Self-Regulation:
She urged manufacturers to adopt ethical practices in AI deployment, even in the absence of formal policies.

How MAN Is Preparing for the AI Era

In outlining MAN’s strategies for navigating AI’s impact, Mrs. Akinkugbe emphasized proactive measures to mitigate risks while embracing opportunities:

1. Workforce Development:
MAN has prioritized upskilling programs to prepare workers for AI-driven roles. Partnerships with educational institutions and tech firms are key to these efforts.

2. Advocacy for Inclusive Policies:
The association engages policymakers to ensure AI regulations protect both businesses and employees.

3. Leveraging AI Responsibly:
While adopting AI technologies to boost productivity, MAN emphasizes ethical considerations to maintain workforce stability and consumer trust.

 

AI’s Broader Implications on the Digital Economy

Mrs. Akinkugbe reflected on the digital economy’s dependence on AI, warning that unchecked growth could exacerbate economic inequalities.

1. Economic Stratification:
The gap between large corporations and SMEs may widen as only well-resourced firms can fully capitalize on AI.

2. Data Security and Privacy:
AI’s reliance on vast amounts of data raises concerns about misuse and breaches, demanding urgent regulatory attention.

3. Competitive Edge:
“AI presents an opportunity for Nigeria to position itself as a global manufacturing hub if managed wisely,” she noted.

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The Call to Action: Balance, Collaboration, and Sustainability

Mrs. Akinkugbe concluded with a strong message: “The future of manufacturing lies in our ability to harmonize innovation with human and economic considerations. AI must serve as a tool for inclusive growth, not an instrument of inequality.”

To achieve this, she called for:

• Collaborative Governance: Governments and industries must work together to create enforceable, adaptable AI policies.
• Investments in Reskilling: A workforce equipped with digital skills is essential for sustaining growth.
• Ethical AI Deployment: Manufacturers must prioritize transparent and accountable AI practices to foster trust.

 

The adoption of AI in Nigeria’s manufacturing sector represents a pivotal moment for the economy. However, as Mrs. Akinkugbe articulated during the MAN Media Luncheon, the road ahead demands careful navigation to avoid pitfalls. With strategic planning, inclusive policies, and a commitment to ethical innovation, Nigeria has the potential to lead in the global digital economy.

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