As manufacturers worldwide embrace AI, robotics, and the Internet of Things (IoT) to automate operations, Akihiro Teramachi, Chairman and CEO of Japan's THK Group, has cautioned against using automation as a pretext for laying off employees.
Speaking at an industry forum on March 4 at the Taipei International Convention Center, Teramachi delivered a keynote speech titled "The Role of Manufacturing in the AI Era: The Human Resources We Need." The forum was co-hosted by the Taiwan External Trade Development Council (TAITRA) and the Taiwan Association of Machinery Industry (TAMI) as part of the Taipei International Machine Tool Show (TIMTOS) 2025, which runs March 3-8 at the Taipei World Trade Center and Taipei Nangang Exhibition Center.
Teramachi said that THK has been built on its core linear motion technology since its founding in 1971. Over the years, the company has expanded into various industries, including aerospace, medical applications, renewable energy, and 3D printing.
The evolving role of automation in manufacturing
As automation and robotics advance at an accelerating pace, industry demands continue to shift, posing new challenges for manufacturers. Beyond labor shortages, productivity bottlenecks, and cost-control pressures faced by developed economies, global companies must also navigate large-scale customization and increasingly complex supply chains. These challenges underscore the need for AI, IoT, and robotics-driven automation, Teramachi noted.
However, achieving effective automation is not just about implementing new technologies—it requires strategic planning. How can companies maximize automation's benefits? What approach should they take to ensure success?
According to Teramachi, manufacturers must first distinguish between "automation" and "autonomation." Automation refers to mechanization aimed at reducing labor, increasing efficiency, and boosting production—where machines work tirelessly but without added value. In contrast, autonomation focuses more on enabling machines to perform intelligent, value-added tasks while minimizing errors, even in continuous production.
Five key pillars of valuable automation
Teramachi outlined five fundamental principles that define valuable automation: enhancing product and service quality, providing effective solutions for customers, adapting to shifting market demands, improving cost competitiveness, and, most importantly, increasing revenue and profitability.
He also stressed that simply installing robots or automation systems is insufficient. Successful automation must also consider its impact on the workforce. He pointed to examples in Europe and the US, where companies have promoted automation under the guise of innovation but ultimately used it as a tool for large-scale layoffs.
Despite AI's rapid progress, human expertise remains indispensable. "The future is still shaped by people," Teramachi emphasized. For manufacturers to navigate the AI-driven transformation, they must focus on developing and retaining skilled talent rather than replacing them.
Human-centric strategies
To achieve this, Teramachi proposed three key strategies: investing in employee training and craftsmanship, ensuring employees gain specialized expertise; structuring industry knowledge into a comprehensive system, allowing companies to deliver services more efficiently; and leveraging human adaptability in manufacturing, enabling production lines to transition more smoothly and flexibly into mass production.
While automation will continue to expand, particularly in emerging markets, AI applications such as voice and image recognition are also becoming more prevalent. However, this does not mean every worker must acquire entirely new skills. Instead, Teramachi encouraged individuals to refine their existing expertise while allowing AI to handle routine tasks, ensuring that human decision-making remains central.
He concluded by urging manufacturers to stay vigilant, open-minded, and proactive in adapting to industry shifts, positioning themselves as drivers of change rather than passive adopters.
Article translated by Willis Ke and edited by Jerry Chen
