Saudi Arabia’s Obeikan Investment Group (OIG) has transformed its manufacturing operations through an AI-powered smart factory platform, O3ai, resulting in a 30% increase in overall efficiency and millions in cost savings. The platform, developed in partnership with Microsoft Azure, is now expanding globally as a standalone solution for manufacturers worldwide.

The transformation began when OIG CEO Abdallah Al-Obeikan recognized the need to streamline operations across the company’s 20 factories, which employ over 3,000 workers and manage 1,200 machines across 280 assembly lines. The challenge was to maintain quality while remaining competitive in the global market.

Rex Del Mundo, a plant manager at Obeikan’s Rigid Plastics division, experienced the dramatic shift firsthand. What once required three hours of daily meetings analyzing handwritten logbooks has been reduced to minutes of data review through O3ai’s intelligent monitoring system.

The platform’s success lies in its integration of Microsoft Azure Service technologies, including Azure OpenAI Service and Microsoft Copilot. The system processes an impressive 50,000 IoT signals per second from factory equipment, providing real-time insights and predictive maintenance capabilities.

“Instead of looking backward, now we are looking ahead, seeing problems before they happen,” explains Del Mundo, highlighting the platform’s ability to prevent issues before they impact production.

Under the leadership of Tarik Taman, appointed as general manager of the O3ai startup, the platform has helped OIG grow from a $750 million company to a $1 billion enterprise. The success has prompted the company to commercialize O3ai, with plans to relocate its headquarters to the United States.

Khmaïess Al Jannadi, director of strategic partnerships at Obeikan Digital Solutions, emphasizes the critical nature of AI adoption in manufacturing: “Using AI to reduce your costs is not really a luxury to do. It’s critical to survive.” The platform has already been adopted by 20-25% of Obeikan’s packaging clients.

The journey represents a significant milestone for Saudi Arabian innovation in the global manufacturing sector. Al-Obeikan’s vision of every company becoming a software company has positioned OIG at the forefront of manufacturing digitalization, proving that regional companies can successfully compete and innovate on a global scale.

Looking ahead, O3ai’s expansion into international markets signals a new era in smart manufacturing, where AI-driven solutions become essential tools for operational efficiency and competitive advantage in the global marketplace.

News Source: https://news.microsoft.com/source/emea/features/from-bottlenecks-to-breakthroughs-obeikans-ai-powered-journey/