GenAI promises manufacturing boost but firms lack readiness

NTT DATA has released new research revealing that while manufacturing leaders have high expectations for generative artificial intelligence (GenAI) to revolutionise operations, most lack the technical infrastructure and policies needed to realise these benefits fully.

The report, which surveyed more than 500 manufacturing leaders and decision-makers in 34 countries, identified a strong drive among manufacturers to leverage GenAI for smart factories, productivity gains, innovation, resilience, and competitive edge. Despite this, 92% of respondents indicated that outdated technology infrastructure and capabilities are obstructing the effective adoption of GenAI.

The findings demonstrated near-universal optimism, with 95% of respondents reporting that GenAI is already improving efficiency and bottom-line performance. The integration of Internet of Things (IoT) and edge data is particularly anticipated to enhance GenAI's capabilities, with 94% expecting it to significantly improve the accuracy and relevance of AI-generated outputs. However, confidence in implementing such integrations is not universal among respondents.

The survey found that 91% believe combining digital twins with GenAI will benefit physical asset performance and supply chain resilience. Among the most frequent GenAI use cases were supply chain and inventory management, knowledge management, quality control, research and development, and process automation.

Challenges persist across several areas. Seventy-six percent of manufacturers do not have a formal GenAI usage policy for employees, raising concerns about risk and governance. Seventy-eight percent said their GenAI ambitions could negatively affect their sustainability goals, indicating a need to balance technological progress with environmental considerations.

On ethics, only 47% of manufacturing leaders strongly agree that their organisation follows a robust framework that balances risk with value creation for AI use. The survey also highlighted workforce readiness as a barrier, with two-thirds of manufacturers stating that their employees lack the necessary skills to use GenAI effectively. This skills gap was seen as a source of operational disadvantage and risk.

Data management also emerged as a constraint, with only 41% of manufacturers strongly agreeing they have sufficient data storage and processing capabilities to support the intensive workload requirements of GenAI.

Prasoon Saxena, Co-Lead, Products Industries, NTT DATA, said: "AI is streamlining processes and redefining what's possible across the entire manufacturing value chain, from supply chain predictions to quality control. GenAI can help organisations achieve flexibility in fast-changing business environments, especially in the face of uncertain tariff policies worldwide."

Despite increased satisfaction with AI initiatives over the past year, satisfaction has not translated into full readiness for adoption. Less than half of respondents have conducted a comprehensive infrastructure readiness assessment, pointing to a need for better planning and evaluation before pursuing GenAI projects at scale.

Saxena added: "The most successful manufacturing organisations have already integrated GenAI into essential operations. Companies failing to plan, deploy and govern GenAI strategically will not only have a problem, they may be planning to fail."

As digital transformation continues to shape manufacturing globally, the report signals that robust policies, governance, investment in skills, and modern infrastructure are required if the sector is to fully capitalise on the potential efficiencies and advantages presented by generative AI.