Like many industries, the chemical industry is benefiting from advancements in artificial intelligence (AI), machine learning (ML), and cloud computing capabilities. Both large tech companies and small startups are capitalizing on the capabilities of AI to spur development in the chemical industry. Research and development, process design, supply chain management, and predictive maintenance are the main areas where AI is being applied to benefit the chemical industry.
Generative AI is being leveraged in research and development to find new chemicals at a fraction of the cost and time. Models utilizing AI and ML can simulate difficult to achieve experimental conditions, design chemicals at the molecular level, and predict material properties before experimentation. This results in shorter development cycles and will lower barriers to entry making it easier for new competition to enter markets that used to be dependent on institutional knowledge and trade secrets built over decades.
Process design is also being accelerated by the integration of AI, ML, and cloud computing into design software. This technology can be leveraged to enhance chemical synthesis efficiency and provide design automation. These enhanced process design tools accelerate the design phase reducing the cost of projects. They can also be used to spot inefficiencies in existing processes and make recommendations for improving the process. Collectively, such capabilities may help with the delivery of capital projects on schedule and on budget – something the industry has struggled with over the years.
Exhibit 1. Examples of companies utilizing AI in chemicals
AI and ML is also improving logistics in the chemical supply chain. Blockchains, which store transactional data, are being used to track information along the chemical value chain, even tracking individual molecules at every step. This data provides an understanding of customer needs and consumption patterns that can be used to project future demand and plan production accordingly. This could potentially lead to an advantage for smaller companies that use it to effectively target valuable niche markets.
Finally, AI is improving worker safety and facilitating predictive maintenance in several industries. In the chemical industry, AI and ML are being used to improve workplace safety by monitoring workers and equipment alike. Wearables integrated with ML software can monitor operator fatigue and focus while equipment can be monitored to identify safety concerns, such as corrosion, and recommend needed maintenance.
Having discussed how AI is driving growth in the global economy including how it is being implemented in the oil and gas and chemical industries, we will discuss how companies in utilities, industrials, and mining are benefiting from developments in AI, ML, and cloud computing in upcoming blogs.
– Piercen Hoekstra
ADI Chemical Market Resources is a prestigious, boutique consulting firm specializing in chemicals, petrochemicals, polymers, and plastics since 1990. We bring deep, first-rate expertise in a broad range of markets including oil & gas, chemicals, and utilities, where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
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