Oct. 14, 2025 – IFS, the leading provider of Industrial AI software, has released the results of its global study on the accelerating scale of Industrial AI adoption across asset-intensive industries. The study found that while organizations, particularly in the manufacturing industry, are adopting AI today, they are not fully prepared for its full implementation. This has created what IFS calls the "AI Execution Gap."
The IFS Invisible Revolution Study 2025* surveyed over 1,700 senior decision makers at industrial enterprises globally. The research identifies an ‘Invisible Revolution’: a rapid but under-recognized shift away from consumer productivity-led AI experimentation and toward embedded, operational AI across core business processes. But as with all revolutions, significant challenges, in particular an AI Execution Gap, are emerging.
The Execution Gap occurs when companies move faster into AI adoption than their staff are able to upskill, as is the case in the manufacturing industry. The study found that 90% of manufacturing organizations are planning to increase AI investment in 2025, positioning the sector for accelerated adoption and scale. However, access to skills remains a top concern for 61% of manufacturers, followed by issues around having a clear AI strategy (58%).
“AI is a core driver of business performance, it’s time to plug the ‘AI Execution Gap’—bring people, process and product together to deliver tangible outcomes,” said Kriti Sharma, CEO, IFS Nexus Black. “The pace of adoption is inspiring, but the next big unlock will come from scaling trust, strategy and talent. Industrial AI is a powerful force for good, and we’re in a moment of opportunity: those who move fast will lead the next decade of industry.”
Growing AI value, but lagging readiness and trust issues
The research reveals a striking contrast at the heart of the AI surge. While the technology is already delivering impressive returns, most organizations remain unprepared to scale its impact.
More than half of manufacturers (58%) admit their organization still lacks a clear AI strategy. Yet the study clearly finds opportunities available to companies that embrace AI. Across the manufacturing industry, 90% of organizations say AI has already improved profitability, while 67% note AI is generating up to 25% more ROI than expected.
So how do manufacturing organizations adapt to ensure they stay competitive? Training and upskilling—supporting employees to thrive in an AI-First environment will be key to ensuring that industrial companies remain relevant. The manufacturing industry is certainly on the right track, with 60% of organizations expecting to be AI-First within a year.
Despite growing confidence in AI’s potential to boost productivity and growth, companies are prioritizing AI governance and formalizing AI leadership at scale. The study found that 75% of manufacturers believe their organizations should be directly involved in AI regulation, while 51% plan to appoint a Head of AI within 12 months, signaling structural readiness for enterprise transformation.
The clock is ticking
The IFS research signals a new stage of enterprise AI, no longer confined to innovation labs, but powering frontline operations. The next 12 months will be decisive as those manufacturing organizations that close the ‘AI Execution Gap’ now will shape the future of industrial leadership.
Kriti Sharma concluded: “We’re experiencing one of the most profound and underestimated shifts in global business. Industrial AI is here and already reshaping how entire industries run, compete and grow. The time is now.”
IFS Nexus Black applies deep domain expertise and industrial-grade AI to build production-ready products proven to minimize risk, maximize return and deliver results in weeks, not years.
About IFS
IFS is the world’s leading provider of Industrial AI and enterprise software for hardcore businesses that service, power and protect our planet. Our technology enables businesses which manufacture goods, maintain complex assets and manage service-focused operations to unlock the transformative power of Industrial AI to enhance productivity, efficiency and sustainability.
IFS Cloud is a fully composable AI-powered platform, designed for ultimate flexibility and adaptability to our customers’ specific requirements and business evolution. It spans the needs of Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM), Supply Chain Management (SCM) and Field Service Management (FSM). IFS technology leverages AI, machine learning, real-time data and analytics to empower our customers to make informed strategic decisions and excel at their Moment of Service.
IFS was founded in 1983 by five university friends who pitched a tent outside our first customer's site to ensure they would be available 24/7 and the needs of the customer would come first. Since then, IFS has grown into a global leader with over 7,000 employees in 80 countries. Driven by those foundational values of agility, customer-centricity and trust, IFS is recognized worldwide for delivering value and supporting strategic transformations. We are the most recommended supplier in our sector.
