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Title
Michelin runs 200+ AI use cases across manufacturing, supply chain and innovation
…ton_copylink"> Copy Link Carolyn Geason-Beissel/MIT SMR | Getty Images Summary: Michelin Group currently has more than 200 AI use cases that support essential businesses and functions, including inspecting tires for defects and providing advance detection of stock shortages in its supply chain. Ambica Rajagopal, the company’s group chief data and AI officer, explains how M…
Description
French tire manufacturer Michelin has more than 200 AI use cases in production, led by group chief data and AI officer Ambica Rajagopal. Its in-house IRIS system, protected by over 20 patents, partially automates end-of-line visual tire defect inspection to improve inspector efficiency and workplace ergonomics while operators retain final accountability. Machine learning forecasting tools improve demand forecast accuracy and proactively detect stock shortages in the supply chain. Michelin scans the startup ecosystem and uses tools including Databricks and Dataiku, and has partnerships with Microsoft and Rockwell Automation to codevelop AI solutions. The company reports AI-project ROI exceeding €50 million per year, growing 30-40% annually for three consecutive years, governed by an internal data office and responsible-AI principles (people-centric, explainable, accountable).
…ess processes and innovating new ideas. Embedding AI in Core Business Processes Michelin’s data efforts are led by group chief data and AI officer Ambica Rajagopal. She joined the company as group chief AI officer in 2020 after having led data,…
Company
Michelin
…19th century apply data and artificial intelligence to transform its business? At Michelin Group, a French multinational manufacturing company founded in 1889 by the brothers Édouard and André Michelin, today’s leaders are figuring that o…
Country
France
…data and artificial intelligence to transform its business? At Michelin Group, a French multinational manufacturing company founded in 1889 by the brothers Édouard and André Michelin, today’s leaders are figuring that out. Michelin is the second-largest tire man…
Region
Europe
…data and artificial intelligence to transform its business? At Michelin Group, a French multinational manufacturing company founded in 1889 by the brothers Édouard and André Michelin, today’s leaders are figuring that out. Michelin is the second-largest tire man…
Industry
Manufacturing
…data and artificial intelligence to transform its business? At Michelin Group, a French multinational manufacturing company founded in 1889 by the brothers Édouard and André Michelin, today’s leaders are figuring that o…
Problem
As a manufacturing company founded in 1889 with 128 production facilities and nearly 130,000 employees in 63 countries, Michelin needed to apply data and AI to transform its business at scale. Core processes such as end-of-line visual tire inspection were time-consuming and costly: 100% of tires were controlled manually and visually, a complex ergonomic task from a physical and concentration point of view.
…d as mobility, construction, aeronautics, low-carbon energies, and health care. The company has 128 production facilities and employs nearly 130,000 people in 63 countries. (It’s also known for its travel guides and the Michelin stars it awards to the…
Solution
Michelin's in-house IRIS system, protected by over 20 patents, partially automates end-of-line visual tire defect inspection to improve inspector efficiency and workplace ergonomics, while operators remain accountable for the final decision on any tire IRIS flags as potentially defective. Machine learning-based forecasting tools help Michelin improve demand forecast accuracy and proactively detect stock outages in its supply chain. Michelin runs external innovation and exploration events to scan the startup ecosystem globally and incorporate best-of-breed AI solutions such as Databricks and Dataiku into its platforms, and is forming strategic partnerships with industry leaders including Microsoft and Rockwell Automation to codevelop AI solutions. Governance is led by group chief data and AI officer Ambica Rajagopal's team and an internal data office, guided by three responsible-AI principles: AI systems should be people-centric, explainable where necessary, and have clear accountability.
…king for defects is a critical process that is often time-consuming and costly. Michelin uses AI-augmented machines it calls IRIS to partially automate the manufacturing defect inspection process. The technology has improved both the efficiency and the experience of inspector…
Business value
Michelin's commitment to AI transformation has led to an ROI from AI projects of over 50 million euros per year, with increases of 30% to 40% annually for the past three years. The company has also received considerable benefits from generative AI projects, including document processing in the tax department, social listening in marketing, and root cause analysis in manufacturing.
…smaller use cases. Rajagopal told us that the company’s efforts are paying off: Michelin’s commitment to AI transformation has led to an ROI from AI projects of over 50 million euros per year, with increases of 30% to 40% annually for the past three years. Related Articles Of course, true AI transformation requires not just a strategi…
AI capabilities
Computer Vision, Generative AI, Predictive Analytics
…ise through experimentation and research in AI for many years,” Rajagopal said. Other types of AI, such as forecasting, computer vision, and now generative AI, have powered innovation in quality, energy monitoring, customer knowledge, and performance prediction within Michelin, Rajagopal told us. “The ability of AI to model complex processes and detect pr…
Technology
Databricks, Dataiku
…er for maximizing value for our customers, employees, and partners,” she added. Michelin runs external innovation and exploration events that help it scan the startup ecosystem globally to identify and then incorporate best-of-breed AI solutions, such as Databricks and Dataiku, into its platforms. The company held an AI challenge event in India in 2024 that was designed to ju…
Implementation approach
Michelin is expanding its AI Center of Excellence, piloting AI across business lines, and running external innovation and exploration events — including an AI challenge event in India in 2024 designed to jump-start the use of AI agents by harnessing the local AI startup ecosystem — to scan the startup ecosystem globally and identify best-of-breed AI solutions to incorporate into its platforms.
…chelin global locations learning about how AI is being used across the company. Michelin is currently expanding its AI Center of Excellence; piloting AI across business lines; and forming strategic partnerships with industry leaders, including Microsoft and Rockwell Automation, to codevelop AI solutions. The company is committed to governing the ethical integration of AI. Responsibl…
Onboarding approach
Michelin hosted its first AI for Business Day in 2024, with over 1,100 participants across four Michelin global locations learning about how AI is being used across the company. Leadership actively champions data and AI and promotes digital upskilling, ethical AI use, and cross-functional collaboration, participating in learning expeditions, internal training, and exchanges with peers to inform the vision of AI use in the company's processes and businesses.
…agents within Michelin by harnessing the booming AI startup ecosystem in India. The company hosted its first AI for Business Day in 2024, with over 1,100 participants in four Michelin global locations learning about how AI is being used across the company. Michelin is currently expanding its AI Center of Excellence; piloting AI across…
