U.S. Manufacturing Companies Slow to Adopt AI, Research Finds

Research from IFS, a technology provider of enterprise cloud and industrial artificial intelligence (AI) software, shows that even though there is a degree of AI optimism among manufacturing companies, challenges still exist in terms of successful AI adoption and deployment.

Limited skills & expertise (43%), data complexity (40%), and limited use cases (38%) were identified as the top manufacturing factors slowing adoption progress. Digging deeper, research showed that manufacturing had the highest number of respondents that indicated that a lack of strategic approach and board leadership is holding them back from AI success (55%).

However, findings reveal some optimism about the benefits of AI. Innovative products and services (40%) and cost reductions/margin gains (36%) are areas where manufacturers are looking for AI to make an impact. 

Sustainability planning also is associated with overall AI optimism. Most respondents with an AI strategy for sustainability believe it can have the biggest impact through designing better process to improve efficiency (22%).

“At the surface level, the lack of optimism across some respondents may suggest we are at the edge of a trough of disillusionment, particularly following the all-encompassing hype that AI enjoyed for much of the last 18 months,” says Christian Pedersen, chief product officer, IFS.

“The lofty expectations for AI bely a fundamental misunderstanding of how it is supposed to drive value,” Pedersen adds. “The real power lies in industrial AI, where data flows through every part of your business, combining structured, interlinked datasets to uncover insights, optimize every process and marry the digital with the physical world. If a business doesn’t have a strategy to reach that point, then they need a partner who can guide them on that journey.”

There are more insights and actions in the Industrial AI: the new frontier for productivity, innovation and competition Executive Report.

Research Methodology

Censuswide surveyed 1,709 C-level/president/senior vice president/directors who work in manufacturing, energy & resources in organizations with $50 million plus annual revenue (aged 18+) across the United States, Canada, UK, Germany, France, United Arab Emirates, Norway, Japan, Australia, Sweden, Denmark and Finland.

About IFS

IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build, and maintain assets, and manage service-focused operations.

Sources: Press materials received from the company and additional information gleaned from the company’s website.