On the 27th episode of Enterprise Software Innovators, hosts Evan Reiser (Abnormal Security) and Saam Motamedi (Greylock Partners) talk with Tom Gerdes, EVP & CIO of The Heico Companies. Employing over 9,000 people globally and with an annual revenue of over $2.5 billion, The Heico Companies is the parent company for over 70 high-performing manufacturing, construction, and industrial businesses. In this conversation, Tom discusses the advantages of generative AI at enterprise scale, the realistic impacts of AI on modern manufacturing processes, and ethical considerations of AI adoption.

Quick hits from Tom:

On The Heico Companies’s current use of automation: “Some of our products have telematics built into them. And so taking that information, being far more aware of the status of the equipment, how it's being operated and ensuring that you're getting the maximum value for your end consumer out of that product. While you think about things like cranes and forklifts being non modernized technology, even when they're human operated, the real ability to get better data and better insights and then use those models to start getting what you've seen in a lot of airline industries, which is uptime and availability of equipment and really putting that across our portfolio of products.”

On the impacts of AI on human labor: “I don't see a transformational shift in taking a lot of the labor out of that process. I think it's about skilling that labor up and utilizing automation as a means to get more value out of what we do in a manufacturing organization. But when you're running a furnace to produce steel billets and when you're rolling those into a rod and we're drawing it into wire, there's certainly a level of automation that can work there.”

On the risk of adopting AI tools: “If you're trying to drive risk to zero. You're in my view, driving value down to negative or certainly below zero. I think it's very hard and I think the whole component of generating value is about understanding and accepting risk, and making sure that risk is also effectively communicated to the business.”

Recent Book Recommendation: Essentialism by Greg McKeown

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Enterprise Software Innovators is a show where top tech executives share how they innovate at scale. Each episode covers unique insights and stories that will help you succeed as a technology leader. Find more great lessons from tech leaders and enterprise software experts at https://www.enterprisesoftware.blog/

Enterprise Software Innovators is produced by Luke Reiser and Josh Meer.