IDEAS home Printed from https://ideas.repec.org/a/mth/bmsmti/v17y2026i1p168-179.html

Transforming the Manufacturing Industry via Large Language Models

Author

Listed:
  • Sebastian Quake Sim Ong
  • Ong Choon Hee
  • Tan Owee Kowang
  • Lim Kim Yew

Abstract

The manufacturing industry is undergoing a critical shift toward digital transformation, in which efficiency, innovation, and responsiveness are central to competitiveness. This paper explores the adoption of Large Language Models (LLMs) such as GPT-4o, Command R+, and DeepSeek-Coder to address existing organizational gaps in data readiness, digital infrastructure, and customer engagement. An organizational assessment reveals limited maturity in analytics, a reliance on manual processes, and minimal customer personalization. To overcome these challenges, the study outlines a strategic vision for achieving excellence and customer centricity enabled by AI. Using the McKinsey 7S framework, the paper highlights misalignments in systems, skills, and structures that must evolve to support transformation. Key focus areas for LLM integration include shop-floor tracking, intelligent production scheduling, compliance documentation, and intelligent customer support. Targeted initiatives such as predictive maintenance, AI-powered search functions, virtual customer assistants, and workforce AI literacy programs are proposed. The paper also addresses risks associated with technical limitations, employee resistance, bias, and data privacy, and proposes mitigation strategies to ensure the sustainable adoption of these solutions. Ultimately, this study demonstrates how LLMs can create a lasting competitive edge in the manufacturing industry.

Suggested Citation

  • Sebastian Quake Sim Ong & Ong Choon Hee & Tan Owee Kowang & Lim Kim Yew, 2026. "Transforming the Manufacturing Industry via Large Language Models," Business Management and Strategy, Macrothink Institute, vol. 17(1), pages 168-179, December.
  • Handle: RePEc:mth:bmsmti:v:17:y:2026:i:1:p:168-179
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/bms/article/download/23473/18100
    Download Restriction: no

    File URL: https://www.macrothink.org/journal/index.php/bms/article/view/23473
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:bmsmti:v:17:y:2026:i:1:p:168-179. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/bms .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.