Domain Knowledge-Based Human Capital Strategy in Manufacturing AI

As the Industry 4.0 paradigm accelerates, the importance of artificial intelligence (AI) in manufacturing industry is increasing. Manufacturing AI requires balanced capabilities between industry-specific domain knowledge and AI capability. Nevertheless, many manufacturing AI startups are mainly focusing on human capital based on AI or data science capability. This article focused on the importance of human capital based on domain knowledge for the success of manufacturing AI. In this article, the relationship between domain knowledge and corporate performance was analyzed for 127 global manufacturing AI startups. Furthermore, the moderating effects of educational level and cofounder size for domain knowledge were analyzed. In addition, an expanded analysis was conducted on effect between domain knowledge, educational level, cofounder size, and corporate performance by business model. This article has new implications for and provides practical contributions to the human capital strategy for manufacturing AI corporates.