Vallourec leverages Gen AI technology to step up efficiencies across Group
Embracing digital transformation, Vallourec is working on deploying generative AI (Gen AI) to increase efficiency and improve internal processes. Aligned with the Group’s strategy, its Gen AI initiative is characterized by a strict attention to problem-solving and is laser-focused on bringing value to both employees and customers alike.
"Where is the value?"
This was Director of Group Project and Efficiency Théophile Chardiny’s first question when he was asked to co-lead Vallourec’s Gen AI initiative. “This is my starting point for all discussions on Gen AI,” Théophile says.
Gen AI is a collective endeavor at Vallourec, with Valeria Fernandes, Group Chief Digital and Information Officer leading from an IT standpoint, while Théophile tackles it from the business perspective. The two have worked in lockstep to lead the initiative from the start.
Théophile has observed that companies today can end up pouring budget and resources into Gen AI software and platforms that don’t bring value or respond to problems they’re facing. At Vallourec, the goal is to approach things from a more strategic point of view.
“Before jumping at the latest Gen AI gadget, we first identify areas where our continuous improvement programs have perhaps reached their maximum effectiveness,” he explains. “Then, we do the theoretical work, taking a concrete deep dive into available technology to determine if there’s a Gen AI solution that can help us advance.”
What is Gen AI?
Gen AI is short for Generative Artificial Intelligence. Let’s first start with defining AI: this is the capacity of computer and machine systems to perform tasks that usually would require human intelligence. Gen AI is the field of AI that focuses on content generation, most commonly in the form of text, videos and images. ChatGPT and Microsoft Copilot are examples of Gen AI. Of particular interest to Vallourec is these tools’ capacity to analyze, organize and summarize enormous amounts of data exponentially faster than humans.
Accelerating data
With this strategy in mind, the Group’s Executive Committee took part in a month-long training followed by a seminar in October 2023 to define Vallourec’s mission vis-à-vis Gen AI, and how to use it to create value before setting in motion a data acceleration program.
We rely on data for every project and every challenge we face, and over the last year, we’ve invested a lot in data acceleration. We want data to be more readily available across the entire organization, so we can put it to use for us and to the benefit of our customers.
To accomplish this, a major focus is on breaking down siloes—a challenge for every large company. “This is a critical success factor for us, and we’ve already seen some positive momentum on this front,” Valeria says. “To keep moving in the right direction, we need to identify the right people within the Group who can see where the dots need to be connected to get the right information into the right hands.”
Augmenting the Group’s talent base
“Education, training and awareness are the crucial starting points of our initiative,” Théophile says. “Before we can use Gen AI for our benefit, we need to ensure confidentiality and reliability of the tools we choose to use, and we must empower our employees by giving them the training needed to master the technology.”
The team is working with external advisors to provide training and make employees aware of the possibilities and risks associated with Gen AI. So far, 150 Vallourec community members who were identified as early adopters have been trained through a series of four workshops. On top of that, 30 business “ambassadors” within the Group are supporting the ideation and assessment process for possible use cases. In total, 400 employees are now taking an active role in the Gen AI initiative.
To avoid unnecessary overspend, all Gen AI-related projects are designed and executed after conducting a full assessment from both a feasibility and a technical standpoint.
Every initiative undertaken must create value, it must be efficient, and it must deliver on the Group’s strategic plan.
A selection committee conducts regular reviews of ideas to determine which use cases should move on to a proof-of-concept stage. With all use cases, the team wants to be able to answer three questions:
- Is Gen AI the right technology to address the problem?
- Is the available technology able to support the project in the short term, and do we have the infrastructure in place for it?
- Does the project align with the Group’s strategic goals?
Several potential uses for Gen AI have already been identified. Currently, a use case based on increasing safety is in the works where Gen AI will be used to help perform risk assessments on different workstations. Another use case involves the development of a chatbot that customers could use to get quick and accurate answers to a variety of questions they may have about Vallourec products and processes.
Committed to triggering innovation
Whatever directions the Group takes, it is certain that the transformative capabilities of Gen AI are tremendous. “It’s not just a technological change,” Valeria says. “It’s a big, constant change of our collective mindset. With great support from the top, I’m proud of the progress we’ve made over the last year, and will continue to make in the years to come.”
