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AI is reshaping manufacturing. When we set out to sponsor the second annual State of AI in Manufacturing Survey, conducted by Researchscape, there were certain AI trends we expected to see across the 369 manufacturers who participated.
For example, it wasn’t surprising to find that 90% of manufacturers say AI is important to the future of the industry, nor was it shocking to see that 77% of manufacturers have now implemented some form of AI—up from 70% in 2023. These findings validate AI’s critical role in driving transformation, equipping manufacturers to compete in an increasingly complex and dynamic market.
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However, some findings challenged our perspective and caused us to reflect more deeply on AI’s trajectory in the industry.
Copilots vs. agents
One of the most striking revelations came from a new question in the survey: whether manufacturers preferred AI copilots—tools designed to assist and augment human work—or autonomous AI agents, which operate independently without human oversight.
Manufacturers’ current preference, at least as reflected in Rootstock’s survey, was clear: 53% of respondents favored copilots, while only 22% opted for agents. Copilots enhance productivity by providing insights and automating repetitive tasks, but they keep decision-making in the hands of human resources. This preference may be driven, at least in part, by apprehension.
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The study shows that concerns over AI resulting in job displacement are on the rise: 17% of respondents believed AI could replace their roles, up from 12% in 2023. Since copilots are perceived as tools that collaborate rather than replace workers, manufacturing professionals may feel more comfortable with AI in a supporting role.
However, not all survey respondents were familiar with the distinction. A notable 25% of participants were unsure or didn’t know which approach they preferred, highlighting the need for greater education on AI tools and their capabilities.
The Great Divide
The choice between copilots and agents reflects a deeper philosophical divide, one that often depends on who is being asked the question. Leaders versus frontline workers may envision AI’s role differently.
Copilots are designed to seamlessly integrate into workflows, assisting employees with data-driven insights and automating routine tasks. They are viewed as drivers of human productivity, ideal for augmenting the workforce without disrupting it.
In contrast, AI agents represent a bold, transformative vision, as they can independently drive decision-making and execution, promising even higher levels of efficiency and reducing reliance on human input and actions. But this approach requires significant buy-in and strategic changes, including rethinking workflows, addressing workforce concerns, and investing heavily in training.
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The distinction comes at a critical point, as manufacturing faces a labor crisis, with 2.1 million jobs projected to remain unfilled by 2030. This is due to the large number of retiring workers along with the industry’s challenge to recruit the next generation.
While copilots provide an immediate and acceptable bridge to a more automated future, agents represent a long-term vision that will offer the autonomy and scalability needed to navigate the industry’s workforce challenges.
It also presents a unique opportunity to meet the expectations of younger workers. In the survey, Generation Z surpassed all other groups in their enthusiasm for AI, with 56% reporting they were very or extremely excited to use AI in their jobs—a significant increase from 32% in 2023. By investing in AI solutions that align with the aspirations of this tech-savvy generation, manufacturers can better position themselves as leaders addressing the talent gap.
AI drivers
In terms of investments, manufacturers are pushing forward—82% plan to increase AI budgets in the next 12 to 18 months, with 23% of them planning substantial increases of 26% to 50%. Leaders are targeting investments toward key priorities:
- Production remains the top focus, climbing to 38% in 2024.
- Production planning also saw notable growth, increasing from 22% in 2023 to 28% in 2024. Similarly, quality control rose to 28%, reflecting the need for reliable demand fulfillment and product consistency.
- Inventory management (up from 20% to 26%) and supply chain planning (up from 16% to 21%) demonstrate the growing reliance on AI to navigate supply chain challenges and optimize operations.
These trends show that manufacturers are not just adopting AI to improve existing processes but are actively exploring ways to innovate around continued challenges.
AI blockers
Even as manufacturers recognize AI’s potential, significant barriers hinder adoption. As previously noted, 25% of respondents were unsure or didn’t know whether to select copilots or agents, highlighting the need for AI education. Addressing these blockers that respondents identified in the survey will be essential to unlocking AI’s full potential:
- Lack of internal expertise (45%) and difficulty integrating AI with existing systems (44%) remain the top challenges.
- High implementation costs (37%) and unclear ROI (24%) further complicate adoption, making it difficult for manufacturers to justify investments without anticipated outcomes.
These challenges underscore the need for accessible, intuitive solutions and ongoing workforce training to ensure AI adoption aligns with expectations at various levels of organizations. It will also help address the 19% of respondents who are still unenthusiastic about using AI in the workplace.
ERP’s role in AI adoption
Almost half of survey respondents—54%—expressed uncertainty about their ERP’s readiness for AI, highlighting an urgent need for modernization. Without AI-ready ERP solutions, manufacturers risk missing out on AI’s transformative potential.
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In this survey, copilots may have been the preferred choice for manufacturing professionals, but as AI continues to evolve and education increases about the capabilities and benefits of each tool set, the potential for agents to take on a greater role remains significant.
Manufacturers must navigate this transition thoughtfully, balancing innovation with workforce empowerment and ERP readiness. By leveraging AI as both a collaborator and a transformative driver, businesses can unlock unprecedented levels of efficiency, productivity, and resilience in an increasingly dynamic global market.