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Benefits range from ‘smarter’ rail systems to finance, HR, strategic planning and more

Artificial intelligence (AI) is having a significant impact on commercial laundries, and it’s likely to grow even larger in the next decade. That was the rough consensus we got from recent interviews with operators, supplier partners and consultants.

For example, AI-driven improvements are aiding production in rail systems. At ImageFIRST’s new healthcare plant in Phoenix, staff are using an “Autopilot” system from Kannegiesser ETECH that’s saving labor and smoothing out the production flow with AI-powered automation on this wash floor. This system (pictured above) is capable of processing more than 1 million lbs. a year.

“Basically what it does is it looks at what you have in soil and it goes through,” says Regional Director of Engineering Michael Haralson. “You know basically what your entire process is, and it goes, ‘OK, right now I need to pull more sheets forward because all of your small-piece folders going to be busy.’ So it’s kind of watching out and it’s learning as it goes.” Larry Erickson, chief technology officer for Kannegiesser ETECH, says Autopilot has largely eliminated the need for wash floor staff to monitor the movement of goods during processing. While not entirely new, this system represents significant progress. The vendor is now working on additional improvements, Erickson says. Applying AI and “machine learning” will make the rail system even more responsive to changing conditions in the plant. “While the current system is ‘rules-based,’ we’re actively exploring ways to introduce machine learning into Autopilot to further improve decision-making and responsiveness,” Erickson says. “We see a lot of potential in building a future AI-powered module that can learn from historical outcomes and continuously optimize plant performance” (see related article, pg. 28).

Consultant Gerard O’Neill applauds the system. But he cautions that for some operators, adding AI-powered equipment is gaining such cachet that they view it a “must have” item for their plants—whether they’re ready for it or not. “It’s becoming that ‘golden apple on the tree,’” he says, noting that some operators will ‘say, “‘I want the golden one. It’s the hardest one to get. I don’t care, but it’s shiny and it’s nice and it’s new. And I want it.’”

Clearly, AI technology in laundries is at an early stage of development. Some operators worry about finding themselves on the “bleeding edge” of innovation. Most of those that we asked about AI and its implications said they’re looking at the technology, but haven’t yet bought into it. The common response we get from operators goes something like this: “We are working on implementing AI every day. The industry is slowly adapting for this, so we are trying to find ways on our end.” The reality is that for most operators, full implementation of AI is a future goal.

Learning Curve

Few U.S. operators have delved deeper into AI and its implications than Zachary McCook, director of information technology (IT) for Nixon Medical Apparel & Linen Service, New Castle. DE. McCook led a TRSA webinar in April on recovering from IT hacking incidents. He has 12 years’ experience in the field. However, he is relatively new to commercial laundering. McCook joined Nixon Medical in November 2022. With that said, McCook sees AI as an opportunity to dramatically improve a range of laundry processes. “We know that it’s a game changer,” he says, speaking for Nixon Medical, which operates five plants and 14 “locations,” i.e., depots, offices, etc. “We have to be involved with it. We can’t be left behind on this thing.”

McCook describes the process of implementing AI in a laundry as a three-stage process. Citing the adoption strategy of one of the larger AI companies, he notes that these phases include:

  • First, creating personal efficiency: This can mean using programs like ChatGPT or Copilot Cloud in areas ranging from writing better emails to analyzing data, creating better automated software applications (aka “bots”) such as chatbots that simulate human conversation and can respond to user inquiries.
  • Second, having mastered the first step, you can “democratize” AI by sharing these tactics with others in your organization whose work could also benefit from this technology. “Put it in everybody’s hands,” McCook says. “Leverage the success of one person across every person in your organization.”
  • Third, once an AI process is working well, you should look for ways to automate it for improved performance. “These are the three pillars that we look at as we’re trying to move forward in adoption of AI,” he says.

McCook and others we contacted noted that as a company moves forward with AI implementation, they should emphasize that the technology isn’t about replacing people. Rather, it should empower them with tools that can enhance their performance. McCook uses the image of a tool belt to describe the importance of AI for a company’s growth. Some managers may only look at AI as a way to cut payroll costs by automating various functions. He sees this view as short-sighted. “I think for maybe some organizations, they get to a spot where they’re able to save workforce dollars by using bots or robotics or something like that,” he says. That isn’t Nixon Medical’s way. “We’re a family organization. We’re not looking to replace anybody with technology. It’s just not who we are. The way that we look at it, AI is a tool set. It’s your hammer, it’s your screwdriver. It’s your AI. It’s in your tool belt, right?” For example, using AI potentially could make someone a better inventory manager or salesperson, marketer or executive. “Whatever it is, we’re using those tools to help lift us up…to elevate us, if you will, rather than do our jobs for us. So, it’s an upgrade; it’s not a replacement.”

McCook declined to detail Nixon Medical’s AI strategy, but he did share a broad outline of the process that the company has piloted for the past 16 months. While progress at this stage is difficult to measure, the prospects look bright for leveraging growth with AI, he says. The process begins with training, which McCook and his team of four IT associates oversee. “I wrote AI workshops at the company; I do a few of them throughout the year,” he says. “We bring in interested parties and run through demystifying AI, like breaking down use cases, seeing how they’re done, seeing how prior-use cases can be reapplied to other use cases. Things like that are creating a community for us to talk through and share ideas.”

AI in Action

One company that’s deployed AI as a multi-use tool for expanding its business is the Lindstrom Group, Helsinki, Finland. President and CEO Juha Laurio says his company has integrated AI into its business strategy. “At Lindström, we are committed to leveraging the power of AI to enhance our operations and deliver exceptional value to our customers,” says Laurio, who recently completed a term on TRSA’s Board of Directors. “Our approach to AI deployment is multifaceted and strategically aligned with our business goals.”

For example, Laurio says the company is leveraging AI capabilities to support its 2× Strategy—a two-part goal of doubling net sales, while significantly enhancing customer satisfaction. “By integrating AI into our operations, we aim to unlock new levels of efficiency, innovation and value creation,” says Laurio. He adds that, “To guide our efforts, we are continuously evolving our AI framework, which helps us assess the potential of AI applications and use cases across different areas of the business. This framework also ensures that we take a tailored approach, depending on the strategic importance of each domain.”

Lindstrom also seeks to boost employee productivity by leveraging “commodity” AI tools such as Microsoft 365 Copilot and ChatGPT, while embedding AI-powered features in various business applications. These include tools applicable to human resources and finance, including an AI-enabled invoice-management tool for accounts payable. Another area is communications, where Lindstrom is using AI-based “photoshoots,” i.e., creating professional-quality photos without traditional photography, or extensive editing skills. Instead, AI generates images from various styles to meet your needs using headshots or “selfies.”

To provide backup for these initiatives, Lindstrom recently launched a “Copilot Center of Excellence.” “This center plays a key role in empowering employees by offering guidance, answering questions and facilitating knowledge sharing,” Laurio says. “It ensures that everyone can effectively harness the benefits of AI tools in their daily work.”

Another AI project on Lindstrom’s agenda is focusing on the company’s strategic differentiation in order to boost its competitiveness. The emphasis here is on building, “custom machine learning models” based on the company’s proprietary data. “This allows us to develop AI solutions tailored to our specific business needs and gain a competitive edge,” Laurio says.

Given that AI technology is advancing rapidly, Lindstrom wants to keep its team apprised of developments in this area and to take advantage of emerging opportunities. Examples of what Laurio refers to as “strengthening our AI adoptability” include:

  • Closely tracking new AI trends and technologies
  • Quickly identifying business value from evolving AI capabilities
  • Improving data quality through robust data management
  • Building flexible technical enablers
  • Promoting a companywide AI-driven culture

Another company that’s moving forward swiftly with AI implementation is textile supplier George Courey Inc., a family-owned textile supplier based in Woodbridge, Ont., Canada. Founded in 1910, the company is focused on a range of AI initiatives in areas including:

Sales: “We’re leveraging ChatGPT and other generative AI tools daily—everything from drafting personalized outreach to summarizing complex client requirements to accelerating RFP responses,” says Matthew Victor, vice president of sales. “It’s become a core part of how we save time and increase precision.”

Another area that the company is pursuing is “predictive modeling.” This entails using AI to analyze and forecast customer needs and sales trends. The system also considers “potential churn” by reviewing historical information and real-time signals. “This allows us to prioritize the right accounts, offer smarter pricing strategies and improve overall sales rep effectiveness.”

Operations: George Courey also uses AI to evaluate slow-moving inventory items, optimize procurement decisions and lay out varying supply-chain scenarios in an effort to reduce risk. “This is critical in a business where timing, capacity and quality are everything.” He adds that the company is looking at next-gen tools such as AI-driven demand sensing, autonomous-ordering triggers and integrated dashboards that pull insights across Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems into a single view.

Like McCook, Victor emphasizes that AI is a device to empower staff—rather than render them obsolete. “At the heart of all of this is a belief that AI shouldn’t replace people—it should amplify them,” he says. “We’re focused on giving our teams more time to think strategically, connect meaningfully with customers and stay ahead of market shifts.”

Communications/Finance: A fourth AI implementer is Kathy Bzdziak, CFO for CleanCare, a Pittsburgh-based regional healthcare and hospitality operator. Bzdziak’s focus is on applying AI technology in communications and finance. CleanCare is a nine-month subscriber to a Plaud AI program that she uses to record executive meetings and analyze action items for staff. CleanCare is sufficiently pleased with the results that she’s thinking of expanding the program to help manage invoices. “I’m looking into it for our Enterprise Resources Planning (ERP) system so that for some of the invoices we’ll have an AI tool that will read our invoices and memorize them because as you know with this business, the invoices are the same. It’s the same vendors; it’s the same information.” Bzdziak notes that CleanCare expects to inaugurate this process at the start of the company’s new fiscal year at the end of September. She’s confident these AI tools will make CleanCare more proficient in managing its financial recordkeeping. “Oh, I definitely think it’s going to help with efficiency,” Bzdziak says “I think it’s going to stop data errors—as long as it does what it says it does. Now again, I’ve seen it on the meetings, but the data entry I think will be a big plus on our end and make us way more efficient.”

Employee Screening/Recruitment: Many operators and HR specialists see great potential for using AI to help screen prospective employees quickly and effectively. After a long day on the wash floor, any manager who’s stared at a stack of 200 resumes that need reviewing to fill an important job can relate to the idea of leveraging technology to accelerate this process. But as previously noted, operators should think of AI as a tool that can simplify and speed up tasks—in collaboration with people—rather than as a substitute for them. This is particularly true in HR screening because without careful monitoring, AI recruiting programs can run afoul of equal-employment opportunity laws. Russell Holt, chief compliance officer for Superior Linen Service, Springdale, AR, detailed the pros and cons of using AI for hiring in a July 2023 article titled “The Benefits and Risks of Using AI in the Employee-Selection Process” (bit.ly/4jx09HZ).

In a recent interview, Holt says that that since the article appeared, AI systems have yet to eliminate the risk of “algorithmic bias.” That risk—unless closely monitored by managers—could lead to complaints from the federal Equal Employment Opportunity Commission (EEOC). “While AI can reduce human bias, it can also perpetuate systemic biases if trained on flawed historical data,” Holt says. “A 2024 study by Washington University showed that AI resume screeners tended to favor white-sounding names over black-sounding names, despite neutrality claims” (bit.ly/WashUAIbias). A similar hazard is that over-reliance on AI for screening can obscure the documentation that you might need to defend your company in a discrimination lawsuit. “Many AI systems operate like ‘black boxes,’ making it difficult to trace why certain candidates are selected or rejected,” Holt says. “Without transparency, companies risk legal challenges and eroding candidate trust.”

Using AI with “human oversight” is essential to avoid these hazards, while still taking advantage of AI’s ability to quickly assess multiple candidates much faster than the most adept HR professional could do. “AI must assist hiring; not replace human decision making,” Holt says, adding that experts agree that companies should regularly audit AI tools to correct for biases. Employers also should limit AI’s role to pre-screening candidates, rather than making final hiring decisions. The answer to this challenge, says Holt, lies not in rejecting AI, but rather in applying it wisely. “Textile service providers should view AI as a tool to assist human judgment, not replace it,” he says. “By keeping people in the loop and complying with emerging EEOC standards, the industry can harness the power of AI, while building fairer, stronger teams for the future.”

Tools for Today & Tomorrow

While the future’s unknown, it strikes us that in the near term, AI and AI-powered laundry automation could have a substantial impact on commercial laundries. One day, AI possibly could rival the emergence of the internet in the early 1990s. When asked where he thinks AI will take the industry in the next 10 years, McCook answers that those companies that master AI tools, particularly the third stage, or automation of AI-powered systems, will position themselves for growth. “People who know how to do that are going to make a ton of money telling companies how to do that right,” he says. “That’s really important.”

Bottom line? McCook and many of the sources we contacted are high on the future of AI. They cite its ability—with human oversight—to serve as an effective tool for enhancing industry performance in a wide range of areas. TS

JACK MORGAN is senior editor of Textile Services. Contact him at 540.613.5070 or jmorgan@trsa.org.