August 22, 2024 – Research from IFS, the leading technology provider of enterprise cloud and industrial AI software, shows despite high levels of AI optimism among manufacturing companies, hurdles still stand in the way of successful AI adoption and deployment.
Limited skills & expertise (43%), data complexity (40%), and limited use cases (38%) were identified as the top manufacturing factors slowing adoption progress. What’s more, manufacturing had the highest number of respondents feeling that a lack of strategic approach and board leadership is holding them back from AI success (55%).
However, there is optimism about the benefits of AI. Innovative products and services (40%) and cost reductions/margin gains (36%) are the two areas where manufacturers expect AI to make large differences.
Sustainability planning also correlates directly with overall AI optimism. The less wide-ranging an industry’s sustainability strategy was with regard to AI, the less likely they were to be optimistic about AI in general. Interestingly, most respondents that have an AI strategy for sustainability believe it can have the biggest impact through designing better process to improve efficiency (22%).
Christian Pedersen, Chief Product Officer, IFS, commented: “At the surface level, the lack of optimism across some respondents may suggest we are at the edge of a trough of disillusionment, particularly following the all-encompassing hype that AI enjoyed for much of the last 18 months.
“The lofty expectations for AI bely a fundamental misunderstanding of how it is supposed to drive value. The real power lies in Industrial AI, where data flows through every part of your business, combining structured, interlinked datasets to uncover insights, optimize every process and marry the digital with the physical world. If a business doesn’t have a strategy to reach that point, then they need a partner who can guide them on that journey,” concluded Pedersen.
There are more insights and actions in the Industrial AI: the new frontier for productivity, innovation and competition Executive Report.
The IFS Global AI Optimism League Table by Country
Research Methodology
Censuswide surveyed 1,709 C-level/President/SVP/Directors who work in Manufacturing, Telecommunications, A&D, Services, Construction & Engineering or Energy & resources in organizations with $50m+ annual revenue (Aged 18+) across the U.S., Canada, UK, Germany, France, UAE, Norway, Japan, Australia, Sweden, Denmark and Finland.
About IFS
IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build, and maintain assets, and manage service-focused operations. Within our single platform, our industry specific products are innately connected to a single data model and use embedded digital innovation so that our customers can be their best when it really matters to their customers - at the Moment of Service™. The industry expertise of our people and of our growing ecosystem, together with a commitment to deliver value at every single step, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of over 6,000 employees every day live our values of agility, trustworthiness, and collaboration in how we support our 6,500+ customers. Learn more about how our enterprise software solutions can help your business today at ifs.com.
