Manufacturing Business Leaders Embrace AI

Summary

As in other business sectors, manufacturing business decision-makers are adopting tools and applications powered by artificial intelligence (AI) at a rapid pace. According to a new survey, 71% of manufacturing decision-makers anticipate that adopting AI will significantly enhance productivity. Employees are benefiting from the automation of routine tasks, saving an average of 10 hours per month and enabling them to focus on other higher-value activities.

These results and more are from The AI Opportunity in Manufacturing Report released in April by TeamViewer, a provider of digital workplace solutions. The report discusses the potential impact that artificial intelligence will have on manufacturing business operations.
 

AI adoption and maturity

AI use in manufacturing has increased due to global challenges such as labor shortages and supply chain disruptions. Currently, 78% of manufacturing leaders report using AI weekly, up from 46% the previous year, making AI a regular part of daily operations.

With this growth, perceptions of AI maturity and confidence have also risen. While 72% of respondents consider their organizations’ AI adoption mature, only 28% of manufacturing leaders regard themselves as AI experts, indicating an ongoing need for education and skill development.

Manufacturers use AI for customer support automation (28%), data analysis (23%) and supply chain optimization (19%), with AI-powered forecasting and decision-making applications growing. “Young workers, being digital natives, are driving AI adoption in manufacturing,” said Mei Dent, chief product and technology officer at TeamViewer.
 

Advances for businesses and workers

AI is facilitating considerable advances for both businesses and employees within the manufacturing sector. A significant 77% ecision-makers consider AI indispensable for enhancing efficiency, automating repetitive tasks to minimize downtime and allowing staff to engage in more strategic activities. In addition, 78% of these leaders indicate that AI has empowered them to concentrate on high-level decision-making.

In addition to improving efficiency, AI is useful for enhancing product quality and minimizing defects. Respondents report that AI resulted in a 33% quality improvement compared to a 20% average improvement across various industries using other methods.

AI enables workers to analyze data and make decisions, with 74% reporting improved abilities in these areas. Additionally, 72% of workers state AI helps them acquire new skills, and 71% regard it as important for career advancement. Financially, 71% of manufacturers anticipate AI will increase revenue in the coming year, projecting a growth rate of 188%.

Barriers to broader adoption

Although AI presents significant potential for transforming the manufacturing sector, several challenges hinder its wider adoption. Foremost among these concerns are security issues, with 76% of respondents citing AI-related data risks—an incidence higher than the cross-industry average (Figure 1).

Other notable barriers include a lack of AI education (42%), high implementation costs (30%), and insufficient financial support for scaling AI initiatives. However, manufacturers are optimistic, with 81% anticipating increased AI investment in the coming year. Addressing these obstacles through targeted education programs, strategic financial planning, and clear communication about AI’s long-term value will be crucial for achieving broader adoption.
 

Looking ahead

Investment in artificial intelligence is critical for manufacturing to achieve its full potential. The prioritization of education is evident, with 96% of respondents acknowledging the necessity of further training to mitigate associated risks, and 74% affirming plans for additional educational programs. Leadership plays a pivotal role as well, with 68% endorsing the appointment of a “Chief AI Officer” to oversee strategies and ensure responsible adoption.

“AI has already proven its ability to transform businesses, but we’ve only scratched the surface of its potential,” Dent explained. “By focusing on collaboration, education and responsible adoption, manufacturers can harness AI to achieve remarkable results while fostering innovation.”

_{This feature originally appeared in the May 2025 edition of Automation.com Monthly.}