New Study Reveals AI Knowledge Deficit in Manufacturing Industry

IFS, provider of Industrial AI software, released the results of its global study on the scale of Industrial AI adoption across industries. The study found that while organizations, in manufacturing for example, are adopting AI, they are not ready for its full implementation, creating 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 shift away from consumer productivity-led AI experimentation and toward embedded, operational AI across core business processes. But significant challenges, in particular an AI Execution Gap, are emerging.

The Execution Gap occurs when companies move faster into AI adoption than their staff can upskill, as is the case in manufacturing. 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,” say 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.”

The research reveals a contrast at the heart of the AI surge. While the technology is already delivering 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.

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.

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.

“We’re experiencing one of the most profound and underestimated shifts in global business," Sharma says. "Industrial AI is here and already reshaping how entire industries run, compete, and grow.”

An Executive Summary of the study is available here.

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