Generative AI tools have taken the world by storm. ChatGPT reached 100 million monthly users faster than any internet application in history. The potential benefits of efficiency and productivity gains for knowledge-intensive firms are clear, and companies in industries such as professional services, health care, and finance are investing billions in adopting the technologies.

But the benefits for individual knowledge workers can be less clear. When technology can do many tasks that only humans could do in the past, what does it mean for knowledge workers? Generative AI can and will automate some of the tasks of knowledge workers, but that doesn’t necessarily mean it will replace all of them. Generative AI can also help knowledge workers find more time to do meaningful work, and improve performance and productivity. The difference is in how you use the tools.

In this article, we aim to explain how to do that well. First, to help employees and managers understand ways that generative AI can support knowledge work. And second, to identify steps that managers can take to help employees realize the potential benefits.

What Is Knowledge Work?  

Knowledge work primarily involves cognitive processing of information to generate value-added outputs. It differs from manual labor in the materials used and the types of conversion processes involved. Knowledge work is typically dependent on advanced training and specialization in specific domains, gained over time through learning and experience. It includes both structured and unstructured tasks. Structured tasks are those with well-defined and well-understood inputs and outputs, as well as prespecified steps for converting inputs to outputs. Examples include payroll processing or scheduling meetings. Unstructured tasks are those where inputs, conversion procedures, or outputs are mostly ill-defined, underspecified, or unknown a priori. Examples include resolving interpersonal conflict, designing a product, or negotiating a salary.

Very few jobs are purely one or the other. Jobs consist of many tasks, some of which are structured and others which are unstructured. Some tasks are necessary but repetitive. Some are more creative or interesting. Some can be done alone, while others require working with other people. Some are common to everything the worker does, while others happen only for exceptions. As a knowledge worker, your job, then, is to manage this complex set of tasks to achieve their goals.

Computers have traditionally been good at performing structured tasks, but there are many tasks that only humans can do. Generative AI is changing the game, moving the boundaries of what computers can do and shrinking the sphere of tasks that remain as purely human activity. While it can be worrisome to think about generative AI encroaching on knowledge work, we believe that the benefits can far outweigh the costs for most knowledge workers. But realizing the benefits requires taking action now to learn how to leverage generative AI in support of knowledge work.

Continue reading: How Generative AI Will Transfer Knowledge Work

Reprinted from the Harvard Business Review, November 7, 2023.

• Maryam Alavi is the Elizabeth D. & Thomas M. Holder Chair & Professor of IT Management, Scheller College of Business, Georgia Institute of Technology.
• George Westerman is a Senior Lecturer at MIT Sloan School of Management and founder of the Global Opportunity Forum in MIT’s Office of Open Learning.

Sean Castillo is in the win-win business. As an industrial hygienist in the Georgia Tech Enterprise Innovation Institute (EI2), his job is to ensure that employees are safe in their workspaces, and when he does that, he simultaneously improves a company’s performance.

That’s been a theme for Castillo and his colleagues in the Safety, Health, Environmental Services (SHES) program and their partners in the Georgia Manufacturing Extension Partnership (GaMEP), part of EI2’s suite of programs aimed at helping Georgia businesses thrive.

“A healthier workforce is healthy for business,” said Castillo, part of the SHES team of consultants who often work closely with their GaMEP counterparts to improve safety while also maximizing productivity.

This team of experts from EI2 assist companies trying to reach that critical intersection of both, combining smart ergonomics and safety enhancements with lean manufacturing practices. This can solve human performance gaps due to fatigue, heat, or some other environmental stressor, while helping businesses continue to improve their production processes and, ultimately, their bottom line.

These stressors cost U.S. industry billions of dollars each year — fatigue, for example, is responsible for about $136 billion in lost productivity.

“Protecting your employee — investing in safety now — saves a lot of money later,” Castillo said. “It equates to less money spent on workers compensation and less employee turnover, which means less time training new employees, and that ideally leads to a more efficient process in the workplace.”

It takes careful and intentional collaboration to bring those moving pieces together, and inextricably linked programs like SHES and GaMEP can help orchestrate all of that.

Ensuring Safe Workspaces

SHES is staffed by safety consultants, like Castillo, who provide a free and essential service to Georgia businesses. They help companies ensure that they meet or exceed the standards set by the federal Occupational Health and Safety Administration (OSHA), mainly through SHES’ flagship OSHA 21(d) Consultation Program.

“Our job is to ensure that workspaces and processes are designed so that anybody can perform the work safely,” said Trey Sawyers, a safety, health, and ergonomics consultant on the SHES team, aiding small and mid-sized businesses in Georgia. When a company reaches out to SHES to apply for the free, confidential OSHA consultation program, a consultant like Sawyers gets assigned to the task, “based on our area of expertise,” said Sawyers, an expert in ergonomics, which is the science of designing and adapting a workspace to efficiently suit the physical and mental needs and limitations of workers.

“If a company is having ergonomic issues — maybe they’re experiencing a lot of strains and sprains — then I might get the call because of my knowledge and understanding of anthropometry, and then I’ll go take a close look at the facility,” Sawyers said. Anthropometry is the scientific study of a human’s size, form, and functional capacity.

SHES consultants can identify potential workplace hazards, provide guidance on how to comply with OSHA standards, and establish or improve safety and health programs in the company.

“The caveat is the company has to correct any serious hazards that we find,” said Castillo, who visits a wide range of workspaces in his role. For instance, his job will take him to construction and manufacturing sites, gun ranges, even office settings. “We do noise and air monitoring at all different types of workplaces. I was at a primary care clinic the other day. And over the past few years, we’ve had a significant emphasis on stone fabricators, looking for overexposures to respirable crystalline silica.”

Silica, which is dust residue from the process of creating marble and quartz slabs, can lead to a lung disease called silicosis. OSHA established new limits that cut the permissible exposure limits in half, and that has kept the SHES consultants busy as Georgia manufacturers try to achieve and maintain compliance.

Keeping Companies Cool

Another area of growing emphasis for Georgia Tech’s consultants is heat-related stress in the workplace.

“Currently, there are no standards to address this,” Castillo said. “For example, there are no rules that say a construction site worker should drink this much water. There are suggested guidelines and emphasis programs for inspections for targeted industries where heat stress may be prevalent — but no standards, though that is coming.”

The SHES team is trying to stay ahead of what will likely be new federal rules for heat mitigation. To help develop safe standards and better understand the effects of heat on workers, consultants like Castillo are going to construction sites, plant nurseries, and warehouses, and enlisting volunteers in field studies. Using heat stress monitor armbands, they’re monitoring data on workers’ core body temperatures and heart rates.

“These tools are great because we’re not only gathering some good data, but we can use them proactively to prevent heat events such as heat exhaustion and heatstroke, which can be fatal if left untreated,” Castillo said.

To further help educate Georgia companies about the risks of heat-related problems, SHES applied for and recently won a Susan Harwood Training Grant from the U.S. Department of Labor. The $160,000 award will support SHES consultants’ efforts to further their work in heat stress education so that “companies and workers will understand the warning signs and the potential effects of heat stress, and how they can stay safe,” Castillo said. “We’re sure this will all become part of OSHA standards eventually, and we’d like to help our clients stay ahead of the curve to protect their employees.”

OSHA standards are the law, and while larger corporations routinely hire consulting firms to keep them on the straight and narrow, SHES is providing the same level of expertise for its smaller business clients for free. Most of those clients apply for help through SHES’ online request form. And others find the help they need through the guidance of process improvement specialist Katie Hines and her colleagues in GaMEP.

Lean and Safe

Hines came to her appreciation of ergonomics naturally. After graduating from Auburn University, she entered the workforce as a manufacturing engineer for a building materials company, where “it was just part of our day-to-day work life in that manufacturing environment, on the production floor,” she said.

It took grad school and a deeper focus on lean and continuous improvement processes to formalize that appreciation.

While working toward her master’s degree in chemical engineering at Auburn, Hines earned a certificate in occupational safety and ergonomics (like Sawyers, her SHES colleague). At the same time, Hines was helping to guide her company’s lean and continuous improvement program. And when she joined Proctor and Gamble after completing her degree, “The lean concept and safety best practices were fully ingrained, part of the daily discussion there,” she said.

All those hands-on manufacturing production floor experiences managing people and systems prepared Hines well for her current role as a project manager on GaMEP’s Operational Excellence team, where her focus is entirely on lean and continuous improvement work — that is, helping companies reduce waste and improve production while also enhancing safety and ergonomics.

Hines uses her expertise in knowing how manufacturing processes and people should look when everyone is safe and also productive. She can walk into a GaMEP client’s facility and drive the process improvements and solutions that will help them achieve a leaner, more efficient form of production. And then, when she sees the need, Hines will recommend the client contact SHES, “the people who have their fingers on the data and the expertise to improve safety.”

These were concepts that, for a long time, seemed to be working against each other — the very idea of maximizing production and improving profits while also emphasizing worker safety and comfort.

“But you can have both,” Castillo said. “You should have both.”

In front of a standing-room-only crowd inside the John Lewis Student Center's Atlantic Theater, global leaders from the Hyundai Motor Group and Georgia Tech signed a memorandum of understanding, creating a transformative partnership focused on sustainable mobility, the hydrogen economy, and workforce development.  

As the automaker continues to construct its Metaplant America site in Bryan County — the cornerstone of Hyundai's $12 billion investment into electric vehicles and battery production across the state of Georgia — today's signing ceremony symbolizes the vision that Hyundai and Georgia Tech share on the road to advancing technology and improving the human condition. 

"As a leading public technological research university, we believe we have the opportunity and the responsibility to serve society, and that technology and the science and policy that support it must change our world for the better. These are responsibilities and challenges that we boldly accept. And we know we can't get there alone. On the contrary, we need travel partners, like-minded innovators, and partners with whom we can go farther, and today's partnership with Hyundai is a perfect example of what that means," Georgia Tech President Ángel Cabrera said.  

The state of Georgia and the Institute have positioned themselves as leaders in the electrification of the automotive industry. Hyundai is among the top sellers of electric vehicles in the United States as the company aims to produce up to 500,000 vehicles annually at the $7 billion Savannah plant when production begins in 2025. The plant will create 8,500 jobs, and the company's total investments are projected to inject tens of billions of dollars into the state economy while spurring the creation of up to 40,000 jobs.  

"It's clear, we are in the right place with the right partners," Jay Chang, president and CEO of Hyundai Motor Company, said. "When our executive chairman first decided on [the site of] the metaplant, one of the first things he said was, 'Make sure we collaborate with Georgia Tech.’ Hyundai and Georgia Tech have a lot in common. We have proud histories. We celebrate excellence, and we have very high standards. What we love about Georgia Tech is the vision to be a leading research university that addresses global challenges and develops exceptional leaders from all backgrounds."  

Spearheading new opportunities for students, the partnership will create technical training and leadership development programming for Hyundai employees and initiate engagement activities to stimulate interest in STEM degrees among students. 

José Muñoz, president and global COO of Hyundai Motor Company and president and CEO of Hyundai and Genesis Motor North America, says the company quickly realized the potential impact of the newly forged partnership with Georgia Tech.  

"Proximity to institutions like Georgia Tech was one of the many reasons Hyundai selected Georgia for our new EV manufacturing facility. Imagine zero-emissions, hydrogen-powered vehicles here on campus, advanced air mobility shuttling people to Hartsfield-Jackson Atlanta International Airport, or riding hands-free and stress-free in autonomous vehicles during rush hour on I-75 and I-85. Together, Georgia Tech and Hyundai have the resources to fundamentally improve how people and goods move," he said. 

In pursuit of sustainability, Hyundai has invested heavily in the potential of hydrogen and plans to lean on the Institute's expertise to explore the potential of the alternative fuel source, primarily for commercial vehicles. Hyundai has deployed its hydrogen-powered XCIENT rigs to transport materials in five countries. 

University System of Georgia Chancellor Sonny Perdue was on hand for Tuesday’s ceremony. Reflecting on his visits to the company's global headquarters in South Korea prior to the construction of the West Point, Georgia, Kia plant, he praised the company's values and world-class engineering ability.    

"This is a relationship built on mutual trust and respect. It's a company, a family atmosphere, and a culture that I respect and admire for the way they do business and honor progress, innovation, and creativity. That is why I am so excited about this partnership between the Hyundai Motor Group and the Georgia Institute of Technology because that will only enhance that," Perdue said. 

Owned by Hyundai, Kia recently invested an additional $200 million into its West Point facility to prepare for the production of the all-electric 2024 EV9 SUV. The plant currently manufactures more than 40% of all Kia models sold in the U.S.  

The partnership also includes field-naming recognition at Bobby Dodd Stadium, which is now known as Bobby Dodd Stadium at Hyundai Field, and provides student-athletes and teams with the resources needed to compete at the highest levels, both athletically and academically.

Women make up just 24% of the automotive industry, but Georgia Tech graduates Jenn Voelker and Julia Vorpahl haven't let statistics stop them from paving their own way in a male-dominated field.

Both Voelker and Vorpahl work for Karma Automotive, a luxury electric vehicle manufacturer based in California. Beginning with their time at Tech, they've never let gender bias stop them from pursuing their passion.

"It's math," Vorpahl, a visualization and digital design modeler at Karma, said. "You either get the question right, or you get the question wrong. I think that attitude really helps when you get into a professional environment. It teaches you to have tougher skin where if you are the best for that job, you will get the job. That's what Georgia Tech instilled."

Vorpahl grew up in the industry watching her family operate what is now the oldest independently owned Mercedes-Benz dealer in metro Atlanta after her grandfather, an engine designer for the German automaker, came to America and opened the shop in 1967. She arrived at Georgia Tech unsure if she'd follow in her family's footsteps, but ultimately, she landed an internship at Daimler, the nation's largest commercial vehicle manufacturer.

While other interns came in with a background in automotive design, Vorpahl’s willingness to learn and tireless work ethic landed her a full-time job as the only woman in the company's design studio.

During her three years at Daimler before accepting her position at Karma in 2022, she'd occasionally make the drive from Portland, Oregon, back to Georgia. Along the way, she crossed paths with truckers, who often expressed surprise that Vorpahl was among those behind the scenes designing their rigs. She often heard questions like “Why do you work there?” or “How did you end up there?”

And her response was simple. "Women like cars, too.” 

That rang true through Voelker's childhood as well. When the senior director of program management for Karma arrived in Atlanta for her first year at Georgia Tech, she knew she'd found a place that could help her turn an aptitude for math and science, and a fervor for cars, into a career.

"Best move I ever made," Voelker said on her decision to enroll at Tech, although it wasn't just the Institute's stellar reputation that lured her from her home state of New Hampshire. "I visited campus in February. There was 6 feet of snow on the ground and then I came to Atlanta, and the flowers were blooming."

After changing her major from mechanical engineering to industrial design, Voelker got her foot in the door through an internship with Masterack, a commercial cargo vehicle equipment manufacturer based in Atlanta. She attended Tech at a time when women made up around 27% of the undergraduate population, so when she entered the workforce, she wasn't fazed. "It never bothered me. I have always felt like I fit right in, especially when it's the right school, the right class, or the right company where everybody appreciates learning from each other and working together towards a common goal," she said.

In fact, her experience on North Avenue taught her to always keep learning and never give up, a piece of advice she now passes along to other women entering the industry.

"Don’t be afraid to give your opinion in meetings, speak up and use all of the knowledge that you've learned over the years toward whatever project you're working on," said Voelker, who worked her way up the ladder at Masterack for 18 years before seeking a new challenge at Karma. “That's one thing that I haven't backed down on. If I have a strong opinion about something, I have no fear of saying it.”

Vorpahl and Voelker each commended Karma for their dedication to promoting hard-working women and a culture that fosters diversity — a principle that Vorpahl especially values after completing two study abroad programs at the University of Singapore and the University of Strathclyde.

“One of the biggest advantages was seeing how people from different countries approach design and how different schools approach design. You don’t want a bunch of people who all think exactly the same way. Otherwise, we’d all be driving around in the exact same vehicle,” she said.

Leading Karma’s commercial vehicle product line, Voelker noted that she has continued to see more women in leadership positions and at industry conferences, and she hopes that momentum carries over to the next generation. Highlighting the importance of igniting both young girls’ and boys' interest in STEM, Voelker recently spoke to a local second grade class to share her experiences.

"I've been really fortunate to have had some great mentors over my career, so I love to pay it forward to the younger generation," she said. "They were so excited, and I hope that stays with them and excites them to learn more about engineering."

In addition to providing an example to young women of how to succeed in a competitive industry, Vorpahl also hopes to share the technical aspects of what she's learned in the field with her alma mater and offer future graduates a roadmap to a career in automotive design.

"The students would thrive in this industry because it is so nitpicky, and Tech minds would just love it," she said. "There's not really a direct path from the Georgia Tech studios into car studios, so I'm hoping that I can show them that path."

Voelker and Vorpahl are bonded by their employer and their alma mater, but it’s their shared passion for seeing their hard work hit the pavement that continues to drive them.  

Idling at a crossroads no longer, the automotive industry is embracing electrification like never before. With more electric vehicles purchased in 2022 than any year prior, consumers are beginning to follow their lead. Yet, while opportunity abounds, new challenges will require an innovative approach to ensure a sustainable and accessible electric future for all.

With historic investments from major players in the EV space, including Rivian, Kia, and Hyundai, the state of Georgia is uniquely positioned to serve as a leader in this effort. As the state's leading research institute, Georgia Tech is on the cutting edge of the movement. 

The transportation sector is the largest greenhouse gas emitter in the U.S. at nearly 30%, with passenger vehicles accounting for around 80% of the sector's total output1 as of 2019. Electric vehicles are widely regarded as a budding solution to reduce emissions, but even as both demand and production continue to increase, EVs currently account for around 1% of the cars on America's roadways. 

From the supply chain to the infrastructure needed to support alternative-fuel vehicles alongside consumer hesitancy, achieving the goals set by both the public and private sectors — including the Biden Administration's target of EVs making up at least 50% of new car sales by 2030 — will not be easy. Through research and development, policy, and collaboration, Tech experts are working toward finding solutions that will serve as catalysts during this transitionary period for the environment and the way Americans drive.

Check out the full story. 

The global supply chain has been rocked by disruptions triggered largely by the coronavirus pandemic, resulting in a cascade of shortages on a host of products ranging from computer chips to medications.  

But supply chain disruptions also highlight the potential vulnerabilities in the U.S. manufacturing sector’s critical segments like defense.

To help manufacturers across the state, the Georgia Institute of Technology has launched the Georgia Manufacturing 4.0 Consortium to work with those businesses in defense and related industries become more resilient and less susceptible to supply chain disruptions. The Consortium, which will begin accepting members in April 2022, will work with Georgia defense manufacturers to incorporate cybersecurity protocols, smart technologies such as sensor packs, machine learning, artificial intelligence, and other best practices under Industry 4.0 technology standards.

Led by Aaron Stebner, associate professor in the George W. Woodruff School of Mechanical Engineering and the School of Materials Science and Engineering, the Consortium is an 18-month pilot funded by a Department of Defense Office of Local Defense Community Cooperation (OLDCC) grant of nearly $1 million. Georgia Tech is working in partnership with Spelman College, the Technical College System of Georgia, and the Georgia Department of Economic Development, under the grant to develop workforce, training manuals, a curriculum, and to support businesses in adapting to economic and technological changes that emerge at a much more rapid pace today.

“It’s a cooperative effort that’s really focused on helping to get modern technologies to these Georgia manufacturers. This is about establishing a community of manufacturers who all want to move forward but don’t have the bandwidth or capabilities do it individually,” Stebner said.

The Consortium has three goals. The first is to increase the manufacturing defense supply chain’s resilience and diversification. That will allow those companies to pivot quickly in response to demand and let non-defense-related industries enter the supply chain at critical junctures. The second goal is to work with Georgia manufacturers in adopting new technologies and address challenges that put those businesses at risk.

Lastly, the Consortium is to be a conduit that helps small- and medium-sized manufacturers test out innovations using Georgia Tech resources such as the Advanced Manufacturing Pilot Facility, connect manufacturers with each other, and potentially unlock new markets and collaboration opportunities.

While the focus is on defense manufacturing, the Consortium is open to all manufacturers.

“We want to help as many manufacturers as we can, to grow a bigger pie that helps everybody, lowers risk, and allows companies to be part of building innovative solutions” Stebner said.

Manufacturing Supports Georgia Economy

National Association of Manufacturers data show that manufacturing accounts for $61.1 billion in economic activity, roughly 10% of Georgia’s total output. The industry includes more than 6,600 firms that employ nearly 400,000.

At $14 billion a year, Georgia is ranked 13^th in federal defense spending. Roughly 1,200 manufacturers in the state are in defense or related industries. Those include information technology companies that support cybersecurity, wireless communications, and other innovations that are critically essential to Industry 4.0 in defense manufacturing.

University partners from the Technical College System of Georgia and Spelman College will look to take the Consortium findings and data from the work they do with member companies to create educational programming and workforce training. 

Today, there is a need for more workers in machine learning and other aspects of advanced manufacturing, as well as a need to change perceptions of manufacturing, especially in rural parts of the state, Stebner explained.

To that end, the Technical College System of Georgia could develop programming for students within its two-year education curriculum. It also has a mobile manufacturing unit that could be taken to rural parts of the state and used as a tool to highlight opportunities in manufacturing and dispel misconceptions about the industry.

The all-women’s Spelman College, one of the nation’s premier historically black colleges and universities, launched an extended reality program in the fall of 2020. That program aims to integrate art, technology, and narrative on a gaming platform which is familiar and engaging for students. Those students will develop the technical skills to develop games, create immersive virtual experiences, and develop visual simulations for research, education, and training.

For Consortium members, Spelman’s extended reality program can be used to help turn research data gathered from them into workforce training and development modules.

“Spelman has a long history of graduating women in the natural sciences, and that history has recently led the Department of Defense to distinguish the College as a Center of Excellence for educating women in STEM,” said Jerry Volcy, a Spelman professor and co-director of the Spelman Innovation Lab.

The extended reality program furthers Spelman’s goal to increase the technological readiness of its graduates.

“Spelman has a long record of forging pathways for women of color into new spaces. Today, these spaces include extended reality, defense and, to some extent, manufacturing research,” Volcy said. “From the College’s perspective, participation in the Consortium has the dual potential of creating and discovering new pathways into these industries while immediately providing real-world applications laboratory for the developing extended reality program.”

Fulfilling Georgia Tech’s Mission 

Within Georgia Tech, the Georgia Manufacturing Extension Partnership and the Georgia Tech Manufacturing Institute will support Consortium efforts.

The Consortium reflects Georgia Tech’s broader mission to further its Advanced Manufacturing Initiative, said George White, Georgia Tech’s interim vice president of Industry Collaboration.

“The anticipated research impact envisioned through the Defense Manufacturing Consortium will strengthen Georgia Tech’s positioning in enabling major public private collaborations,” White said. “The advent of the Consortium represents the opportunity to convene key stakeholders from government, academics, and industry to innovate and solve the most challenging problems in manufacturing.”

The Georgia Institute of Technology was awarded a grant from the U.S. Department of Commerce’s Economic Development Administration (EDA) as part of its $1 billion Build Back Better Regional Challenge. Georgia Tech is one of 60 entities to be awarded funding to assist communities nationwide in their efforts to accelerate the rebuilding of their economies in the wake of the pandemic.

As a leader in artificial intelligence, manufacturing research, and innovation-led economic development, Georgia Tech will utilize the grant for technical assistance to plan the Georgia Artificial Intelligence Manufacturing Corridor (GA-AIM). Led by Thomas Kurfess and Aaron Stebner in the George W. Woodruff School of Mechanical Engineering and in collaboration with local partners, GA-AIM will fill existing technology gaps, build a technological opportunity framework that includes underrepresented communities and rural Georgia counties, and better secure the state’s manufacturing infrastructure.

Georgia Tech’s partners in the effort include the Russell Innovation Center for Entrepreneurs, Spelman College, the Technical College System of Georgia, and the Georgia Department of Economic Development.

“We are truly honored to be awarded this grant to implement our vision for manufacturing excellence in Georgia with our partners in artificial intelligence research,” said Chaouki T. Abdallah, executive vice president for Research at Georgia Tech. “Alongside these important partners, the grant enables us to collaborate to include diverse backgrounds and perspectives in the process of learning, discovery, and creation, furthering Georgia Tech’s mission to expand access.”  

Georgia Tech and its partners will pair artificial intelligence and manufacturing research innovation to better secure the manufacturing ecosystem, expand opportunity to distressed and rural communities and underrepresented groups, and support business growth across the state.

“We are thrilled to help communities work together — in coalitions of government, nonprofits, academia, the private sector, and others — to craft ambitious and regionally unique plans to rebuild their communities,” said Alejandra Y. Castillo, assistant secretary of commerce for the EDA. “These projects will help revitalize local economies and tackle our biggest challenges related to climate change, manufacturing, supply chains, and more. EDA is proud to ignite these plans and help communities nationwide build back better.”

GA-AIM’s partners have created a complementary network of resources that focus on each partner organization’s expertise and mission.

“We have an opportunity to create meaningful impact at the intersection of AI and manufacturing,” said Stebner, who wrote the grant proposal that resulted in the $500,000 grant from EDA.

Kurfess, who serves as the regional economic competitiveness officer for the grant, added, “Bringing together AI and manufacturing will ensure a strong manufacturing base for Georgia that will leverage our well-trained workforce and our strong educational institutions that are participating in this effort. What excites me the most is that AI will augment our workforce, making it more valuable and productive, ensuring job growth for Georgia and the U.S. well into the future.”

The GA-AIM effort takes a multifaceted approach to address its core goals:

Georgia Tech

• Formation of the AI Manufacturing Pilot Facility: Georgia Tech’s Advanced Manufacturing Pilot Facility will be transformed into the AI Manufacturing Pilot Facility. The new facility allows for government pilot trials, cybersecurity games, and workforce training to innovate, transition, and create a workforce for AI manufacturing technologies without exposing the region’s supply chains to risk.
• Center for AI Commercialization: Two of Georgia Tech’s commercialization programs — VentureLab and I-Corps South — will create a center for the commercialization of AI manufacturing technologies into local and regional startups. Those commercialization efforts will occur through a quarterly cohort-based entrepreneurial training program built on the National Science Foundation’s I-Corps curriculum. The center will also provide training for instructors to build a sustainable workforce and will secure investment funding for these startups.
• AI Manufacturing Community Engagement: The Enterprise Innovation Institute, Georgia Tech’s chief economic development arm, will engage in focused outreach and technical assistance to small and mid-sized manufacturers and minority business enterprises through its Georgia Manufacturing Extension Partnership and Georgia Minority Business Development Agency Business Center programs. A third Enterprise Innovation Institute program, the Economic Development Lab, will focus on outreach and engagement in distressed and underserved parts of the state, create workforce development programs and implementation strategies, and attract outside investment.
• AI Manufacturing Rural Supply Chain: The Supply Chain and Logistics Institute will study the impact of automation technologies, build automation solutions tailored for rural manufacturers, and create programs that lower the barrier for rural manufacturers’ access to use the AI Manufacturing Pilot Facility.
• AI InVenture K-12 Experiences: To ensure a technically capable workforce in the coming years, Georgia Tech’s InVenture Prize and the Center for Education Integrating Science, Mathematics, and Computing will expand their emphasis to rural and underserved areas of the state by piloting a rural regional event with a region-specific prize. They will also create supplemental lessons centered on AI and data science that will be part of a K-12 InVenture Prize curriculum website.

Spelman College

• Virtual Reality for AI Workforce Training Innovation: Spelman’s Innovation Lab will develop virtual reality technology for training or retraining the GA-AIM workforce to make workers comfortable with new technologies before deployment in real-world applications.

Russell Innovation Center for Entrepreneurs

• LaunchPad AI Innovation Studio: The Russell Innovation Center for Entrepreneurs will create the 5,000-square-foot LaunchPad AI Innovation Studio to provide prototyping and proof of concept development of physical products. Black entrepreneurs will be given access to equipment, training, and mentoring. LaunchPad AI will also be open to AI InVenture teams from Atlanta’s K-12 public schools, with special programs designed for startup mentoring and seed funding for K-12 entrepreneurs.

Technical College System of Georgia (TCSG)

• AI Manufacturing Technical Workforce Development: As Georgia’s technical college coordinating organization, the TCSG will design, develop, and implement curricula at community colleges that include apprenticeships at AI-MPF and virtual reality modules from Spelman. The TCSG will also provide regional entry points for dual enrollment and traditional students to AI manufacturing technical education at certificate and degree levels. Graduates will have exit points that lead directly to careers in the industry or provide for the continuation of education and higher degree attainment through articulation agreements among GA-AIM members.

With this grant, Tech becomes a finalist for significantly more funding to implement projects that support an industry sector and help communities withstand future economic shocks.

“GA-AIM is in strategic alignment with the EDA’s funding priorities, including manufacturing, workforce development, equity, and technology-based economic development,” said David Bridges, vice president of the Enterprise Innovation Institute at Georgia Tech and co-author of the grant proposal. “With manufacturing employing more than 400,000 people across the state and contributing more than $61 billion in economic activity, it’s critical that we leverage the best ideas and programs through our coalition of partners.”  

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About the Georgia Institute of Technology
The Georgia Institute of Technology, or Georgia Tech, is a top 10 public research university developing leaders who advance technology and improve the human condition. The Institute offers business, computing, design, engineering, liberal arts, and sciences degrees. Its nearly 44,000 students, representing 50 states and 149 countries, study at the main campus in Atlanta, at campuses in France and China, and through distance and online learning. As a leading technological university, Georgia Tech is an engine of economic development for Georgia, the Southeast, and the nation, conducting more than $1 billion in research annually for government, industry, and society.

About the U.S. Economic Development Administration
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.

Writer: Péralte C. Paul I peralte.paul@comm.gatech.edu I 404.316.1210

Media contact: Steven Norris | stephen.norris@comm.gatech.edu| 404.281.3343

Supply chain disruptions are not new, but the current disruptions have not only been persistent but have also impacted several industries – and consumers – at the same time. The result has ranged from empty shelves at retail stores to prolonged lead times for consumer products and automobiles.

We sat down with three Georgia Tech Scheller College of Business faculty experts in operations management: Vinod Singhal, Charles W. Brady Chair; Manpreet Hora, associate professor; and Ravi Subramanian, professor. The discussion centered around overarching causes, financial ramifications, and multi-pronged approaches to mitigate the impact of supply chain disruptions in the coming months and year. 

1. What caused the supply chain and logistical issues to arise? What effect did Covid-19 play in all of this? Did the influx of stimulus checks and the extension of additional aid to U.S. citizens (rent deferment, etc.) affect the purchase of goods enough to cause the current situation?

All three experts agree there are several factors on both the supply side and the demand side of the supply chain, and logistical challenges that companies and customers are currently facing.

On the supply side, there are issues in global supply chains that are beyond the control of individual companies. A significant one is the congestion at the ports of Los Angeles and Long Beach in the U.S. Nearly 40 percent of imports into the U.S. flow through these two ports. There are stranded containers that have not been unloaded due to labor shortages, limited unloading capacity, and warehouse space constraints.

For example, a CBS news report on November 11, 2021, indicated that at the ports of Los Angeles and Long Beach, about 80 ships carrying more than half a million containers were waiting to unload. Clearing this backlog will take some time. Another related issue that has added to the congestion is the growing number of empty containers that are sitting on ports to be returned back to exporters.

The congestion at ports is being further exacerbated by trucker shortages that could pose a more persistent and long-term challenge for supply chains.

“Moving products from ports to distribution centers, manufacturing plants, and further downstream to retailers was already a concern for many companies even before the pandemic. Now the combination of port congestion and trucker shortage is further delaying the process of bringing products to the right place at the right time,” said Hora.

Shortages of critical components, such as semiconductor chips, have created additional delays for a range of industries. Shutdowns in chip production during the early stages of the pandemic, coupled with increased demand for products such as computers, smartphones, and automobiles has resulted in fierce competition for acquiring chips across industries. For example, the professors noted that during the initial period of the Covid-19 pandemic, semiconductor companies prioritized chip manufacturing to meet the increasing demand for consumer electronics. This, in turn, diverted supply away from automotive production, resulting in substantial delays in cars rolling off assembly lines

The pandemic either amplified the above-mentioned supply chain and logistical issues or brought in unexpected new ones. It necessitated the closure of borders at the national level, and of plants and warehouses at the company level. These closures, in the initial months of the pandemic, followed by new requirements such as social distancing during the opening of facilities affected and slowed down production, warehousing, distribution, and transportation of products.

On the demand side, explained Subramanian, two phenomena occurred that have led to a surge in demand for goods that were already in short supply.

First, during the pandemic, many people were working from home. This curtailed spending on travel, vacations, and demand for experiential goods and services. People had more disposable income, which they diverted to consumer products that were already in short supply.

Second, the global economy and the US, in particular have been turbocharged by trillions of dollars in stimulus during the pandemic. This stimulus, while necessary to deal with the hardships during the pandemic, enhanced the surge in demand for products.

2. Why are some retailers able to deliver goods without an issue?

“Many large retailers, including Walmart Inc., Home Depot Inc., and Target Corp., do not seem to have supply chain and product shortage issues like their counterparts, because they ordered and took delivery of goods earlier than usual this year. They have not only built-up inventories but have enhanced their inventory management practices. Some retailers have also chartered their own ships to counteract delays in transportation,” said Singhal.

They have also moved the unloading of their goods from the ports on the west coast to other ports in the U.S. that are less congested. These retailers have used their clout and deep pockets to get suppliers and logistics companies to prioritize their orders. Their far-flung supply chain networks can identify and work with several suppliers to find options to source items that are out of stock.

3. What are the financial ramifications to the U.S. and to the world for this supply chain issue?

The professors note that large companies have used their clout to deal with the current supply chain issues. Although their costs of procuring supplies have increased, they may be able to pass on some of the cost increase to customers. Some of these companies may see an increase in total sales and total profits in nominal terms although they may experience thinner profit margins. The stock market seems to have incorporated these factors in the valuations and the rising stock market suggests that large companies are expected to do fine financially. For example, the Dow Jones Index has jumped 18 percent this year, S&P 500 is up 25 percent, and Nasdaq has risen 24 percent.

The financial ramifications to smaller retailers and manufacturing firms may be quite negative. As Subramanian explained, these firms do not have the clout and financial resources to work around the supply issues.  Often their sales during the holiday season are critically dependent on receiving a container or two of goods from overseas suppliers. Given the long and uncertain transportation and delivery times, and the high cost of transportation, many small firms may not be able to receive supplies in time for the holiday season and may be left holding unsold inventory or unfinished products. Overall, small firms may take a big hit from the current supply chain issues.

4. Are there any additional issues that consumers may face that they may not be aware of? How will the shortage of goods to retailers affect consumers shopping during the holidays? Is there anything individual consumers can do to help solve the problem?

Consumers can do certain things so that they are not disappointed, said the panel. They should start shopping earlier, expect to pay closer to full price on many products, and not wait for promotions or discounts to make their purchases. They will need to be flexible in their shopping habits and look for substitute products if their desired products are not available. Consumers may also want to prioritize their shopping decisions – for example, ensuring they have the gifts for young children who expect Santa to deliver irrespective of supply chain issues! Likewise, for older parents and relatives, for whom the holiday season is a very special time.  For others, they may want to consider giving gift cards.

5. When do you think this issue will be resolved and how?

“Supply chains getting back to normal will be contingent upon the nature of the underlying supply chain issues. Shipping and retail executives indicate that they expect the West Coast port backlogs to clear in early 2022, when the Lunar New Year shuts many factories for a week in February, thus slowing output and shipments from Asia,” said Singhal.  However, chip shortages may last until 2022 or even extend into 2023. Many chip manufacturers have announced plans to significantly increase their level of capital expenditure but bringing new capacity online can take several years.

This storm of collective issues has brought the importance of supply chain resilience to the forefront. Companies emerging from the pandemic are revisiting or will have to revisit their past approaches to managing supply chains.

Having flexibility and slack in supply chains has been a persistent strategy for several companies but this strategy will now need to be more holistic. For example, companies will need to re-think where to source their critical and irreplaceable components. Companies are already deliberating to not only near-shore suppliers of their critical components but also expand this supply base. This may also entail carrying more inventory of such components to meet demand variability and hedge against supply chain disruptions. Another development is manufacturers vertically integrating to design and produce critical components in-house.

Even before the pandemic, companies were investing in technology to digitize their supply chains. This long-term imperative will be prioritized even more as companies aspire for more transparency and traceability of products in their supply chains. Moreover, advanced automation in manufacturing plants and warehousing could ease some of the pain of labor shortages.

“Despite the current supply chain issues, we believe that supply chains will remain global and complex, but there will be renewed thinking in companies to recognize that Black Swan events such as the Covid-19 pandemic can create a multitude of interrelated and cascading supply chain issues that have serious financial implications. And companies will need to blend flexibility, adaptability, and efficiency to develop capabilities to mitigate impacts and remain resilient during such supply chain disruptions,” stated Hora.

Karen Fite, who, for the past 18 months has led the Georgia Institute of Technology’s economic development efforts as interim vice president and director of the Enterprise Innovation Institute (EI2), has retired after more than 27 years of service.

David Bridges, director of EI2’s Economic Development Lab (EDL), will assume the interim vice president role effective Jan. 1, 2021.

EI2 is the largest and most comprehensive university-based program of business and industry assistance, technology commercialization, and economic development in the United States. 

Prior to leading EI2, Fite ran the unit’s Business & Industry Services group of programs, comprised of the Georgia Manufacturing Extension Partnership (GaMEP), EI2’s largest economic development offering. The group also includes the Safety, Health, and Environmental Services (SHES), Atlanta MBDA Centers, Contracting Education Academy, Georgia Tech Procurement Assistance Center (GTPAC), and the Southeastern Trade Adjustment Assistance Center (SETAAC) programs.

Before taking on that role, Fite was GaMEP director.

“Over the years at Georgia Tech, I have been privileged to serve in a wide variety of capacities — assisting companies with government procurement, their implementation of quality management systems and Lean Manufacturing protocols, the launch of a Lean Healthcare initiative, creating community economic development research and strategic plans, and directing the GaMEP,” Fite said.

“As interim vice president, I have had the opportunity to interact with virtually every EI2 employee. Working with such a talented group of employees of EI2 has been an honor because across the board they are passionate about their work, dedicated to Georgia Tech’s mission of progress and service by serving clients, and continually looking to innovate, improve, and expand our services to help create long lasting and meaningful impact not only in Georgia and across the country, but around the world.”

Chaouki T. Abdallah, Georgia Tech’s executive vice president for research said Fite was a valued member of his leadership team.

“She has been a very effective and engaging leader,” Abdallah said. “She’s brought me solutions, given me critical feedback and has been an invaluable partner. Georgia Tech is lucky to have had her contributions for so long.”

Fite has a master’s degree in business administration from the University of Miami and a bachelor’s in health systems from Georgia Tech. In 2018, she achieved the faculty rank of principal extension professional, Georgia Tech’s highest professional extension faculty rank.

“We are fortunate to have someone of David Bridges’ caliber who can not only build on Karen’s legacy but also brings a wealth of experience and economic development successes,” Abdallah said.

Bridges, who joined EI2 in 1994, authored, co-authored or contributed to more than 100 economic development grants totaling more than $40 million. He assisted in the formation of the two proof-of-concept units — the Global Center for Medical Innovation, a Tech affiliate in the medical device space, and I3L, a health information technology innovation hub.

Beyond Georgia, Bridges helped catalyze the development of the Soft Landings program to bring companies from overseas to the United States. He also helped to establish the I-Corps Puerto Rico program as the National Science Foundation’s first I-Corps program ever offered to teams from that community.

He also supported the expansion of technology extension programs in Chile and Colombia, built a new program in professional development around innovation and technology commercialization, and expanded Georgia Tech’s presence by helping to build startup ecosystems around the Institute’s international campuses and in Latin America.

Bridges and his EDL team have also implemented ecosystem building projects for numerous countries including Colombia, Chile, Ecuador, Peru, Panama, Costa Rica, Argentina, Guatemala, South Africa, China, Korea, and Japan.

- Péralte Paul 

As the world contemplates ending a massive lockdown implemented in response to COVID-19, Vinod Singhal is considering what will happen when we hit the play button and the engines that drive industry and trade squeal back to life again. 

Singhal, who studies operations strategy and supply chain management at the Georgia Institute of Technology, has a few ideas on how to ease the transition to the new reality. But this pandemic makes it hard to predict what that reality will be.

“We know pandemics can disrupt supply chains, because we’ve had the SARS experience, but this is something very different,” said Singhal, the Charles W. Brady Chair Professor of Operations Management at the Scheller College of Business, recalling the SARS viral pandemic of 2002 to 2003. But that event did not have nearly the deadly, worldwide reach of COVID-19. 

“There is really nothing to compare this pandemic to,” he said. “And predicting or estimating stock prices is simply impossible, unlike supply chain disruptions caused by a company’s own fault, or a natural disaster, like the earthquake in Japan.”

For more coverage of Georgia Tech’s response to the coronavirus pandemic, please visit our Responding to COVID-19 page.

The earthquake that shook northeastern Japan in March 2011 unleashed a devastating and deadly tsunami that caused a meltdown at a nuclear power plant, and also rocked the world economy. It was called the most significant disruption ever of global supply chains. Singhal co-authored a study on the aftereffects, “Stock Market Reaction to Supply Chain Disruptions from the 2011 Great East Japan Earthquake,” published online in August 2019 in the journal Manufacturing & Service Operations Management.

But COVID-19 represents a new kind of mystery when it comes to something as complex and critical to the world’s economy as the global supply chain, for a number of reasons that Singhal highlighted: 

• The global spread of the virus and duration of the pandemic. “We have no idea when it will be under control and whether it will resurface,” Singhal said. “With a natural disaster you can kind of predict that if we put in some effort, within a few months we can get back to normal. But here there is a lot of uncertainty.”
• Both the demand and supply side of the global supply chain are disrupted. “We’re not only seeing a lot of factories shutting down, which affects the supply side, but there are restrictions on demand, too, because you can’t just go out and shop like you used to, at least for the time being,” he said. “And all this is taking place in an environment where supply chains are fairly complex – intricate, interconnected, interdependent, and global.”
• Longer lead times. “We get close to a trillion dollars of products annually from Asian countries, about $500 billion from China,” Singhal said. “Most are shipped by sea which requires a four-to-six-week lead time. The fact that logistics and distribution has been disrupted and needs to ramp up again will increase lead time. So, it will take time to fill up the pipeline, and that is going to be an issue.”
• Supply chains have little slack, and little spare inventory. While manufacturing giants such as Apple, Boeing, and General Motors have more financial slack to carry them through a massive economic belt tightening, their suppliers, spread out across the globe, come in different sizes, different tiers, “and these smaller companies don’t have much financial slack,” said Singhal, pointing to a report of small and medium sized companies in China, “which have less than three months of cash. They’ve already been shut down for two months, and cash tends to go away quickly.

“Many of these companies may go bankrupt,” he added. “So we need to figure out how to reduce the number of bankruptcies. Government is going to play an important role in this, and the stimulus package the U.S. has approved will be helpful.”

Trying to get a handle on how stock markets are responding to all that has happened is like trying to take aim at a moving target during a stiff wind. Volatility has increased significantly since February 13, when the Dow Jones index reached an all-time high of about 29,500. 

“That’s because we did not expect the pandemic to spread and disruptions initially were low because of pipeline inventory,” Singhal said, noting that since then the Index dropped sharply, to 18,500 on March 23 (a decline of nearly 38 percent), it picked up and was back to 22,000 by March 30. “The same is true of other stock markets. The Chinese stock market was down 13 percent, but they seem to have the pandemic under control.”

While COVID-19 is making it difficult to predict what the market will look like, Singhal has some ideas of which industries will be most affected.

“Travel, tourism, entertainment, restaurants – businesses that rely on people going out—will take a long time to recover, in terms of profitability and stock price, even once the pandemic is contained,” he said. “People are going to be hesitant to travel after all this. Tourism will take a hit.”

Essentials like groceries are surging as people stock up in reaction to being shut in, but this isn’t a long-term trend. Singhal doesn’t expect this trend to continue as shopping habits and store shelves eventually normalize. 

Companies that sell basics, with a strong online presence, will do well, “but industries like automobiles and electronics, which have global supply chains and have a hard time replacing specialized, high-tech components will be affected,” said Singhal, who also has suggestions on the most important issues to address and how to help speed up the recovery and bring supply chains back to normal (or whatever normal looks like after this):

• The ability to bring capacity online, especially for small and medium-sized companies. “Facilities and equipment may need some time to restart,” he said. “Staffing is a big issue. How quickly can you get people back to work? Also, can you get the raw materials and build up the inventory to support production? That may be tough when pent up demand is being released and everybody is competing for limited supplies.”
• Distribution. Lead times already are long, he notes, and a sudden increase in demand for logistics and distribution services as everybody ramps up again could extend lead times.
• Prevent bankruptcies. Government programs need to be established (like the U.S. stimulus package) to keep small- and medium-sized firms in business. This concern extends to second- and third-tier suppliers, and large firms like Apple or Boeing or GM, should do the same for their most critical suppliers.
• Build slack. “Preserve cash, get new lines of credit or draw down lines of credit, maybe cut dividends or stock repurchases,” Singhal said. “And build inventories of critical components.”

Singhal also stresses the need for transparency, up and down the supply chain: “What that means is, companies need to have a good understanding of what is happening to their customers and suppliers, but not just their immediate, first tier customers and suppliers, but also their customers and suppliers, and so on up and down the line.” 

It will be very important going forward for the next several months to monitor the health of the supply chain from both the customer perspective and a supplier perspective, because this is a new world, says Singhal, who adds an optimistic postscript, “It’s a crisis situation now, but I think we can put it back together.”
   
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