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Fortune
Fortune
Nelson Repenning, Don Kieffer

A case study to consider for AI adoption: GM versus Toyota in the 1980s

GM (Credit: Kurita KAKU/Gamma-Rapho via Getty Images)

On October 20, 1984, The New York Times ran an article headlined, “GM Factory of the Future Will Run with Robots.” In it, Roger Smith, then GM’s CEO, claimed that automation would save the company from increasingly formidable Asian competitors.

But that didn’t happen. Smith’s robotic factories struggled to match the productivity of their human-run counterparts. Robots sometimes painted each other instead of cars or welded doors shut. And they carried much higher costs.

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