 Welcome today's session on humans and machines in industry. So we all know that AI and other fourth industrial revolution technologies can improve production targets in manufacturing. That's clear. But they can also either empower the workers in those factories or they can disempower them. And this is what we're going to be focusing on today. For example, exoskeletons have allowed a new class of workers into the warehouse. For example, women who may not have been able to lift those heavy loads without the support of an exoskeleton. But they can also disempower workers as they no longer have the technical expertise which has changed to do their jobs. Likewise, in terms of workers' satisfaction, they can either empower or disempower. They can empower workers who have been helped to keep up their technical expertise and who feel proud of what they're able to do. Or it can disempower workers who feel that they no longer are as competent as the machines that are acting for them. It is, therefore, extremely important to treat questions of both machines and workers on the factory floor. And today's session is part of the World Economic Forum Initiative on Manufacturing. And it's an important topic that they're treating as well. So we're going to do something a little bit different today. We're going to go straight to two factory floors, one in Germany and one in Malaysia. And we're going to hear from workers themselves. So let's start first with the factory floor of Agilent in Germany. We introduced an automatic scheduling system with real-time output simulation connecting to our workforce. This eliminates production scheduling, allowing fast response and quicker decision-making to customer changes, avoiding productivity losses. In the Manufacturing Control Center, these changes enabled us to react quickly to a changing environment. Our AI library combines sensors and standard cameras to help us detect unknown interdependencies. A standardized toolkit means we can implement solutions within weeks. Now we can detect anomalies and respond faster to process and part deviations. AI is a game changer for us, with our pre-trained AI models and open source libraries. We deployed five applications in less than four months, now inspecting 140,000 parts a year. AI-based early prediction of possible outcomes for over 1,000 test parameters helps to manage test complexity. Our intuitive test system detects deviations early. Fast decision-making allows efficient and effective quality control. I started working on the shop floor and later furthered my career through four IR technologies. With this skills, I can find solutions using process automation and AI. OK, thank you for that fly-through of your factory floor. I'd like to ask you a couple of questions about what you've just shown us. Sven, can you tell us more about the digital journey that the factory traversed to come to where it is today? Absolutely. And a warm welcome from Agilent to Davos and the community. Well, Justine, in our manufacturing digital journey, we've embraced a transformative approach where we're integrating AI and robotics, not just to enable production targets, but to augment our workforce in order to enhancing efficiency and creativity. Our focus has been on developing a collaborative environment where machines handle repetitive tasks, empowering our people to engage in more fulfilling and innovative roles, such as smart factory developer, manufacturing execution systems engineers, or data engineers, and data analysts. Ethically, we're mindful of the importance of putting people at the center of the transformation. We're dedicated to upscaling our workforce and building a culture that supports diversity, encourage creativity, and build trust. This ensures worker satisfaction. In essence, our manufacturing digital journey is more than just technology adoption. It's about creating a future ready, ethically responsible, and sustainable manufacturing ecosystem that creates synergies between human creativity and machine precision for our people. That's great. Thank you, Sven. Sudarsana, can you tell us more about the interaction that you mentioned in the video between order fulfillment and your R&D team? Absolutely. And thank you for the question because I think this is an absolutely critical collaboration. And why is it critical? Well, because ultimately it's going to create and is creating new ways of working to ensure that we have the digital lab of the future. Because ultimately, where our development teams drive the cutting-edge technology, order fulfillment drives that towards real-world application through scalability. And so, this team not only works towards accelerating the innovation, but we're also able to tailor solutions for the life science industry together. And when we do that, we form the unstoppable team and then that enables more meaningful contribution and then ultimately that boosts motivation and job satisfaction. So, it's really important to recognize that our joint efforts ensures that all of these advancements that we're making meets the industry's practical needs. So, I view that synergy between our manufacturing and our R&D teams to be crucial for digitizing our industry because ultimately we're leveraging each team's strengths to drive the innovation, efficiency, and reliability. And so, I see it more than just two collaborating functions. We actually have a unified vision and ultimately that's what's gonna drive the digital evolution in life sciences. That's great, thank you. And Julia, you started out working on the shop floor, if I understand correctly. Can you talk about your journey from the shop floor to bringing together AI and automation? What kind of upskilling in fourth industrial revolution technologies you engaged in and how that's changed your career? Yes, I started as a production operator after middle school. I was always fascinated by the shop floor. My journey took a turn when I learned about digital tools and automation. This was more than carrier advancement. It was about feeding my interest and passion for innovation. Engaging with AI technologies really changed my job. I went from observing machines on the shop floor to integrating cutting-edge solutions into our process. It's a thrilling experience to see my ideas improve our work and deliver results. Upskilling has not only propelled my career but also boosted my confidence. You can change your career no matter where it starts. That's lovely, thank you. And Gabriel, we've heard some pretty exciting things here but this is not necessarily an easy task to convey to the workforce. How do you bring the workforce along with you on this digital journey? Yeah, that's really a key element, right? So effective change management in our digital transformation journey really relies on three key pillars. Our internal school of digitalization, digital champions and a vibrant digital ecosystem. Our school of digital innovation provides a tailored, immersive learning to our employees, helping to shape a mindset that's open to the digital possibilities and the innovation. Our digital champions, they play a critical role as change agents. They are not just the tech-savvy individuals but also passionate about guiding their peers through this digital shift, making the transition to digital thinking more relatable and achievable. And lastly, our digital ecosystem facilitates networking, offers access to subject matter experts and exchange of solutions. It's about creating a community where digital knowledge and innovative ideas are shared freely. That's great. That community aspect of things I think is essential. And in that context, I'd really like to thank you all for showing us how you work and for sharing Agilent's path till today and clearly into the future. Thank you. So I'm next going to welcome Christine Bastion from Western Digital. And I think we're gonna say goodbye to you. There we go. And say hello to Malaysia. Thank you for joining us. I know there's a considerable time difference so thank you for being here with us. Christine is the Chief People and Sustainability Officer for Western Digital. She's gonna show us around their shop floor and she's gonna speak with their workers to explain how their journey has happened to bring us to today. Thank you, Christine. Please join me. And I'll leave you here. It's my privilege to be here today representing Western Digital and speaking to all of you about the workforce and manufacturing. And while we'll obviously be talking about the tech that powers these advances, it would be short-sighted if we did not also discuss what it means to truly empower a workforce with these new technologies. Advances in AI, machine learning, cloud computing, internet of things, big data and analytics are all accelerating the fourth industrial revolution. These monumental shifts will touch every industry and they will undoubtedly have a profound impact on the future of manufacturing. But how do we ensure that we're implementing tech that helps companies achieve operational efficiency but also are designing solutions around the human experience at work and that we're unleashing new technologies in a more responsible and inherently inclusive and equitable way? It's from this place that we can start to re-establish trust with our people. Our digitally enabled world has disrupted the opportunity for those serendipitous interactions and the organic communities that are born out of our social exchanges have been completely disrupted. And we see that trust is being further eroded as companies begin to implement technologies like AI with employees viewing these as technological gains for our companies that will come at their expense. It's our aim to cultivate an augmented workforce who delivers business value through improved job satisfaction and more meaningful work. To demonstrate how we're using the technology to revolutionize the way that we work in our factories, I want to take you to one of our manufacturing facilities in Penang, Malaysia. This facility is the first global lighthouse in Malaysia and the first sustainability lighthouse in Asia. I am pleased to be joined by Kail Bak who has been at the forefront, leading the transformation of our factories at Western Digital. Hello, Kail. Hello, Christine. It is great to be coming to your live from Penang. At the Penang factory, you really charted what we call lights out. Can you explain what that means and what drove you? Sure, Christine. Lights out is all about slim lining the shop floor with minimal human involvement such that you can run manufacturing in the dark like this. So in the past, we heavily rely on labor intensive, manual process, manual setup, manual process control and operators moving work-in-progress material around. So to transform that, we embrace the Ford Industrial Revolution, big technologies like robotics, artificial intelligence, internet of sensors, internet of things sensors, machine learning and machine integration to name a few. So it all began with identifying the main problem in manufacturing, repetitive quality problem and non-optimum operational performance. So I question, which tasks often mundane and repetitive could be done more efficiently by robotic automation? Our goal is to find a sustainable, scalable, that bring consistency, predictability and optimized performance. As a result of our lights out approach, we reduce factory costs by 32%, decrease manufacturing lead time by 50% and increase employee productivity by a whopping 360%. Wow, that is a great segue KL into my next question for you. So a common refrain is that machines will replace people, when in fact we very much still need people, but we need them in new and different roles. So how are we upskilling and re-skilling our employees? Thanks, Christine. Two people are the heart of any operation. Our workforce development program is something that I'm proud of because it gives everyone a chance to progress in their career. We provide upskilling and re-skilling opportunities full on job training, technical classes, gamification workshop and partnering with universities and colleges. As a result of that, nearly half of our staff has undergone upskilling with no job losses. So we believe in promoting our people from within, moving them up from operators to technician and then from technician to engineers, making them a full-fledged knowledge worker. Thank you, KL. It really is about giving people an opportunity for more meaningful work and upward mobility. Now that we have seen the technology work, let's give you all of you into how our people work in this environment. Let's go to the control room with Jackie Jung, who is responsible for our four IR technologies and corporate sustainability. Hi, Jackie. To start, I wanna understand what drove you to relentlessly pursue the transformation of our manufacturing practices and ultimately the global lighthouses at five of our factories. Thank you, Christine. Leading the transformation from the inception, there's always this lingering question about, well, how do we know what good looks like? So it was my passion to benchmark and understand our progress on a global stage. I found World Economic Forum's Lighthouse Network an excellent platform. I know that by undertaking four IR transformation could help us achieve three strategic objectives. First, it enable operational efficiency that ultimately translate to the profitability of the company. And second, we could improve the quality of the work of our people by eliminating Monday and repetitive tasks, give them more value at work. And finally, implementing innovation, making sure that the employee were part of the transformation will make them feel proud for the company they work for. I stationed in a field factory for many years. Bringing that value to the people whom I work hand in hand with is very important for me. Thank you, Jackie, for taking that initiative and having the foresight to recognize that opportunity to revolutionize our manufacturing for the betterment of the company and our employees. I know that you're joined by some of our operators and engineers today. They will tell us more about how they use the technology and their role. Yes, I'm very excited to be joined here by Rafi, one of our operator here. Hello, Rafi. Hello, Jackie. Could you tell us how your job has evolved ever since we implemented LICE-OUT? Sure, Jackie. So in the past, I had to handle repetitive tasks, manually, and stationed on the production line to respond to mission alarm one at a time. But now, I can assess mission around. I can assess mission remotely from my station and quickly addressing alarm without moving around. If I can't feel an issue, I can alert the technician via the smart wash for troubleshooting. This setup allows me to work much more efficiently. Well, that's great. So your job has changed from the factory floor to the control room here. How has it changed your view about your job opportunity and prospect? So what I value the most is that I have a new set of skills that I did not have before that I can continue to build upon. Each skill that I have learned have paved the way for my continuous growth and advancement in my career. That's excellent. Thank you, Rafi. Now, let's talk to Charles, one of our engineer here. Hi, Charles. Hello, Jackie. Well, I see three stations, control room stations, two of them with chairs, with operator working on them. Well, this one, I see screens moving, no chair, no operator. So what's happening here? Certainly, Jackie. Allow me to explain. With this station, we've incorporated AI to work smoothly behind the scene. The AI algorithm effectively deal with the common errors by automatically suggesting troubleshooting steps and operational procedure for the machines. And this algorithm keep learning from real-time challenges addressed by our control room stuff like this ICS operator behind. You know, Jackie, I'm really excited about learning and implementing new technologies that can significantly boost the intelligence and efficiency of our operations. Well, I can really see your excitement here. I'm so thrilled. Well, Christine, you can see that we have architected a very broad-based transformation to positively impact employees at all levels, the operator, technician, engineers, and management like us. We have created the capacity to work remotely and intelligently, which enhances operational flexibility, mitigate errors, and foster a less stressful work environment. It also created space for growth and innovation so that we can unleash the full potential of all of our employees. And this is how we scale to the entire company. Thank you, Jackie, Kayelle, Rafi, and Charles. As I wrap up, I will leave you all with this. Just by the nature of being in this room, we are all endowed with a certain amount of privilege that we have a responsibility to create positive and sustainable change. And if we continue to implement advanced technologies like the ones that we've talked about today, it demonstrates an ever-growing need to marry our technology and people planning so that we continue to operate on the edge of innovation and grow our businesses while making sure that people are at the center of everything we do. That's lovely, and it's lovely to talk to you in Penang. I do have one question. So my own research is on building AI systems that collaborate with people rather than replacing them. And I know from the organizational psychology literature that one thing that we can lose or that I would worry about losing in a factory that's called Lights Out is the social bond between workers because research shows that social bonds both improve satisfaction and performance on the job. So have you lost those bonds between workers? And if not, what do you do about that? And I'll ask Jackie, I guess, thank you. Thank you. I'm sure. Thank you, Justine. You have a very insightful point and also understand our challenge here. We have here implemented a multi-dimensional approach by creating physical spaces and implementing structure mechanism, also nurturing collaborative projects and recognizing employees' contribution. So let me explain a little bit more. First, we create a dedicated space. We call it the Agile Studio. This serves as a big hub that employee across different shifts to collaborate, to innovate and undergo training. Then we establish a structure mechanism to facilitate cross-shift collaborations. Operators, technicians, engineer, and supervisor, they have the opportunity to convene, self-assemble, and collectively work on projects relevant to their respective areas. This could be addressing a productivity problem, a cost challenge, quality issues, you name it. We actively nurture these projects by providing necessary resources and recognitions. The completed project will be showcased to a broader team on a quarterly basis for awareness and broad implementation. Thank you so much, Jackie, for this. This is revealing and very impressive. So thank you for joining us from Penang. It's striking to me that both factories are working on fault detection, which is an important system or an important problem that we've worked on using AI systems. But in fault detection, you can also think about human workforce as a human detection system. How do we ensure that humans remain at the center of the workforce as they are at the center of the society that uses those tools? And you've shown us some impressive ways that you've addressed that, but I'd like to hear from the rest of you if you have examples from your own work or other comments that you'd like to make on what we've seen today. Please. So this whole question of replace versus augment. I mean, there weren't a lot of people on that factory floor, you know? So it's hard to say people at the center of it, if you can't see them. So I think it's one of those questions. And I guess what we've found out is there are use cases where the objective is absolutely people reduction. And it's good to be honest about that. And then there are other ones where it's about expanding the capacity to grow. And you can be honest about using AI to, you know, if it's difficult to get talent and you can have combinations of humans and AI's that have the ability to have five times the productivity, for example. But I found it's like when the language isn't honest about it, it actually destroys the trust, you know? So it's very difficult to say people at the center of it when you actually don't see any people on the floor. I'm sorry. No, people at the center is an important point. And trust is essential to all of this. We lose worker trust, we lose our workforce, and we lose who we work for. I think that's absolutely true. You talked about being honest about losing people and also upskilling. And those two, you've acted as if we lose a part of the workforce, we upskill part of the workforce. But in fact, AI tools are helping many factories engage in that upskilling. So I think it was Jackie who talked about gamification of upskilling. So AI tools can do on demand educational opportunities, for example. But I absolutely agree that trust has to be kept central. Other comments. I think these are excellent examples of what's being done today. And I'd like to know just from a show of hands how many of you are actually involved in manufacturing, period. Great, and how many of you are involved in moving your manufacturing processes towards the future? Let's just make that more specific because everyone's moving towards the future. We don't really have any choice. How many of you are engaged in using AI and other Fourth Industrial Revolution tools to move manufacturing forward? Great, so I'm going to call on you. What are you doing? Excuse me, I have chocolate. That's great, yeah. Other examples, both of successes and problems that you're struggling with. You're a very happy and satisfied group of people, I have to say. Either that or you came straight from lunch and you're hitting your downtime. So I thank you all for joining and for your comments. And I hope you'll continue this conversation. I was remiss in not mentioning the fact that this is an initiative of the advanced manufacturing and supply chain center of the World Economic Forum and that they are benefiting from the work of the initiative on transforming the workforce of the future, so manufacturing the workforce of the future. Thank you so much. I wish you an excellent, both happy and successful rest of the day in Davos and rest of the week. Thank you for joining us.