A new global survey has recently revealed that manufacturing leaders are not wasting time leveraging artificial intelligence (AI). Industry Update reports that 90 per cent of manufacturers globally are prioritising AI integration, and 77 per cent have already implemented it. While rapid AI adoption is essential to remain competitive, the burning question is: are businesses moving too quickly before fully understanding how ready their business is for AI integration?
According to Gartner, the answer is yes. Their new survey found that a large majority of businesses aren’t AI-ready, predicting that this, combined with a lack of AI-ready data, might result in 60 per cent of AI projects being abandoned in the future. This is not just a warning for leaders—it’s a wakeup call to ensure their businesses are adequately prepared for AI. Leaders also must remember to implement AI only where it counts. For example, generative AI (GenAI) can optimise and improve key areas, such as on the production shop floor or in customer service for personalised support and supply chain management for demand forecasting to drive business growth.
If successful, manufacturers will not only unlock Industry 4.0 success faster but will also be able to leverage automation for data-driven decision-making. With experts estimating that the manufacturing AI market will reach USD 20.8 billion by 2028, representing a 700% increase up from USD 3.2 billion in 2023, industrial leaders must prioritise the planning of AI integration to remain competitive, especially in today’s increasingly volatile market. If manufacturers fail to do this, Gartner’s prediction of AI project failures will come to fruition with expensive projects not only floundering, but their failure could determine whether an organisation stays in business or not.
Why AI-readiness is critical for manufacturers
In this sink or swim era we find ourselves, manufacturing industry leaders will be defined by how well they adopt AI and when.
“AI in manufacturing is still very nascent, but all manufacturing companies must act. Unfortunately, there is no silver bullet to realise AI maturity; it’s a journey that requires deep understanding rather than simply focusing on its implementation or discussing its potential,” asserts INCIT.
To become truly AI-ready and an industry trailblazer, manufacturing leaders have to start somewhere, and an AI-readiness assessment can help them identify their current state. This impactful assessment can also support them as they look under the “hood” of their data infrastructure—a critical foundation of AI integration requiring clean, structured, and accessible data. This is but one example of the many challenges manufacturing business leaders must face.
Obstacles manufacturers face to become AI-ready
AI-readiness is defined as becoming prepared to implement AI systems through organisation-specific elements, processes and steps. However, TechTarget describes it as not just “simply deciding to purchase an AI system for use.” Instead, it incorporates innovation like AI-powered technology, yes, but also business culture, processes, and governance.
While almost every business, manufacturing companies included, is on a quest to prepare and invest in AI adoption, McKinsey and Co. report only a mere 1 per cent believe they have achieved maturity. And despite advanced industries, including automotive and assembly, being in the top 25 per cent of spenders, specific challenges within the industry persist, such as clean AI-ready data, high-initial investment, workforce readiness, the complexity of AI integration, and more.
Many manufacturers are “trying to do too much too quickly,” which we’ve seen firsthand. Leaders in this sector are overwhelmed with too much information and don’t know where to start, leading them to use poor implementation strategies that don’t deliver ideal results. Instead, they need to take a phased approach, focusing on one process to improve at a time and using the lessons learned in the next process they want to improve. This slow and steady pace will bring out the best of your transformation efforts and better position the company for an ROI on new AI-powered solutions.
The top AI benefits and applications revolutionising manufacturing today
Manufacturers worldwide are racing to deploy AI to transform their operations, strengthen supply chains and boost productivity. According to the U.S. National Association of Manufacturers (NAM), surveyed manufacturers report that they experienced reduced costs and improved operational efficiency (72 per cent), improved operational visibility and responsiveness (51 per cent) and improved process optimisation and control (41 per cent) after successfully deploying their AI technology projects.
Additionally, the rise of agentic AI in manufacturing has specific use cases like acting as an “agent” to make decisions and execute tasks independently, enabling more agile and intelligent systems. Below, we outline the most innovative applications.
Conclusion: embracing the AI-driven future of manufacturing
AI can profoundly transform every element of manufacturing when fully harnessed. The lightning speed at which AI is transforming entire industries not only demands rapid AI integration but must start with AI-readiness for success. Manufacturing business leaders need to know the vulnerabilities of their business, measure the current state, consider their desired future state, and benchmark against other companies to truly understand their AI maturity.
To fast-track their progress, manufacturing business leaders can leverage INCIT’s dynamic Industrial Artificial Intelligence Readiness Index (AIRI) to extensively assess your company’s areas of opportunity to effectively prepare for AI adoption, transforming it into an AI-powered leading organisation. We can help you remove ambiguity by benchmarking your business against peers to uncover an accurate representation of your standing.
AIRI provides not only actionable insights but a clear roadmap to adopt, scale, and sustain AI-driven transformations; this aspect of AIRI is a critical enabler for success during this uncertain time for manufacturing. To learn more about the INCIT approach to AI and how to ensure AI-readiness as an industry leader, read one of our latest thought leadership blogs.
