NTT DATA, a global leader in digital business and technology services, today published new research showing that manufacturers worldwide are rapidly adopting generative artificial intelligence [GenAI] to create smart factories, boost productivity and secure competitive advantage. The report, “Feet on the Floor, Eyes on AI: Do You Have a Plan or a Problem?”, surveyed more than 500 manufacturing executives across 34 countries.
Key Findings
- 95 % say GenAI is already improving efficiency and bottom-line performance.
- 94 % expect fusing IoT/edge data with GenAI models to markedly sharpen the accuracy and relevance of AI-generated insights.
- 91 % believe pairing digital twins with GenAI will lift physical-asset performance and supply-chain resilience.
- Top use cases: supply-chain and inventory management, knowledge management, quality control, R&D and process automation.
“AI is streamlining processes and redefining what’s possible across the entire manufacturing value chain, from predictive supply chains to zero-defect quality control,” said Prasoon Saxena, Co-Lead, Products Industries, NTT DATA, Inc. “GenAI enables the flexibility required in today’s volatile trade environment and positions manufacturers to innovate at speed.”
Barriers to Scale
Despite rising satisfaction with AI pilots, respondents flagged five critical hurdles:
| Challenge | Insight |
|---|---|
| Legacy infrastructure | 92 % say outdated systems slow AI initiatives; fewer than half have completed a full readiness assessment. |
| Technology integration | While 94 % see IoT data as a game-changer, many doubt their integration capabilities. |
| Responsible AI | Only 47 % strongly agree they follow a governance framework that balances risk and value. |
| Workforce skills | Two-thirds report skill gaps that hamper GenAI adoption and create operational risk. |
| Data management | Just 41 % are confident they have sufficient storage and processing power for GenAI workloads. |
Feet on the Floor, Eyes on AI is based on a Q1 2025 quantitative survey of 517 senior manufacturing leaders and in-depth interviews in 34 countries spanning North America, EMEA, APAC and Latin America.
