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A new study reveals that manufacturers are aggressively investing in artificial intelligence, anticipating significant profit gains within the next two years. Almost half of modernization budgets are being funneled into AI systems, with 88% of manufacturers projecting at least a 5% increase in operating margin. A quarter of those surveyed even expect AI to boost profits by more than 10%.

Despite the optimistic outlook, challenges remain. The survey highlights a disconnect between AI investment and underlying data infrastructure. Many manufacturers are grappling with fragmented and poorly maintained data, hindering AI’s potential. Traditional risk management, often relying on manual processes, also needs to evolve.

Experts advise manufacturers to prioritize data quality and unification, foster trust in AI through phased implementations, and adopt multi-platform strategies to avoid vendor dependence. The industry is increasingly embracing “agentic AI,” where AI agents handle routine production tasks. By 2028, nearly three-quarters of manufacturers expect AI agents to manage up to 50% of these decisions. This requires a shift towards workforce augmentation rather than displacement, along with robust security measures to ensure safe and effective AI deployment.

See also: Frontier AI research lab tackles enterprise deployment challenges