The gap between commercial AI ambitions and reality is often due to fragmented data sources and poor integration between physical operations and digital systems. While AI captures headlines, another technology quietly underpins the effectiveness of these intelligent systems – RFID.
By standardising data capture across processes and assets, RFID addresses this pain point. With RFID, AI models have consistent, reliable inputs, allowing businesses to scale solutions beyond isolated use cases.
Many businesses are falling into the "AI trap", a pitfall described in the Harvard Business Review where investments in AI are not delivering expected returns. The issue often lies not with the AI itself, but with the data it's fed.
"AI alone cannot deliver meaningful digital transformation. It is through digitising physical objects and processes that one can provide AI with structured, high-quality, real-time data to provide actionable insights," says Stef du Plessis, Managing Director of Osiris Technical Systems.
Incomplete, inaccurate or delayed data can lead to flawed insights and misguided decisions, turning promising AI initiatives into costly endeavours.
“RFID is the enabler, here,” he adds. “RFID technology provides the clean, real-time data that AI systems need to thrive. By providing granular, item-level tracking throughout the supply chain, from manufacturing to the point of sale, RFID closes the data gap that so often cripples AI-driven operations.”
Limitations of an AI-driven inventory system without RFID
Imagine an AI-powered inventory management system: without RFID, the system relies on manual scans and periodic updates, which are not only prone to human error but also create data latency.
The AI, in this scenario, is working with a blurry, outdated picture of reality. It might predict stockouts that never happen or miss opportunities to optimise inventory levels, leading to the very inefficiencies it was designed to eliminate.
Now, introduce RFID: tags on each item provide a constant stream of accurate location and status data. The AI system now has a high-definition, real-time view of the entire inventory.
RFID doesn't just prevent the AI from making mistakes – it unlocks its true potential.
“The technology isn't new, yet its role in feeding granular data to AI is transforming industries,” adds Du Plessis. “By providing real-time decision-making capabilities and predictive insights, RFID and AI together form a dynamic duo that drives operational resilience and efficiency.”
Why CEOs are embracing data-centric technologies
A recent PwC survey highlighted that 85% of CEOs view technological advances, including AI and the network of things, as pivotal to reshaping industries. However, they still face the dual challenges of innovation demand and operational complexity, with 61% of CEOs recognising that the impact of technological change, supply chain robustness and digital transformation top their agendas.
In addition, RFID data allows AI to do things such as life cycle and traceability tracking, and optimising processes, helping businesses to meet ESG goals.
Smart shelves, smarter shopping
Retail demands real-time visibility. RFID plays a critical role, achieving inventory accuracy above 95%. Paired with AI, it enables dynamic pricing, personalised shopping and shrinkage prevention through theft pattern detection. This synergy aligns with the businesses' strategic focus on customer-centric growth.
RFID: The backbone of digitised logistics
Supply chain resilience is crucial amid global disruptions. RFID provides the visibility needed, with every tagged item generating a digital footprint, and in so doing you are able to create a digital twin of your physical operation. AI uses this data to create adaptive networks capable of self-optimisation. RFID bridges the gap between the physical and digital, enabling AI to predict delays and optimise routes, thus enhancing efficiency and cost savings.
“As industries push towards AI-driven operations, RFID remains the unsung hero, bridging strategy and operational excellence,” concludes Du Plessis. “Businesses recognise the promise and challenges of digital transformation, and RFID can significantly enhance the data that underpins this. At Osiris Technical Systems, we have years of expertise in implementing RFID solutions in a range of industries, helping to make your digital transformation ambitions a reality.”
Share