95% of manufacturers say GenAI is already improving efficiency, but lack of governance and outdated infrastructure remain key risks
A new global study from NTT DATA reveals that Generative AI (GenAI) is already transforming the manufacturing sector, with 95% of industry leaders reporting improvements in efficiency and bottom-line performance. Yet, the research also highlights critical gaps in governance, data readiness, infrastructure, and workforce capabilities—posing a significant risk to long-term adoption and ROI.
The report, “Feet on the Floor, Eyes on AI: Do you have a plan or a problem?”, surveyed over 500 manufacturing decision-makers across 34 countries. It shows that while manufacturers are increasingly embracing GenAI to build smart factories, enhance R&D, and improve supply chain resilience, many organizations lack the foundational readiness to scale effectively.
“GenAI can help organizations achieve flexibility in fast-changing business environments, especially in the face of uncertain tariff policies worldwide,” said Prasoon Saxena, Co-Lead, Products Industries, NTT DATA, Inc.
“GenAI is streamlining processes and redefining what’s possible across the entire manufacturing value chain.” — Prasoon Saxena, NTT DATA
Key Findings: GenAI’s Rise in Manufacturing
- 95% report GenAI is directly improving operational efficiency and performance
- 94% believe integrating IoT/Edge data into GenAI models will greatly improve accuracy and relevance
- 91% say combining GenAI with digital twins will enhance physical asset management and supply chain agility
- Frequent GenAI use cases include: supply chain optimization, inventory control, knowledge management, quality assurance, and process automation
Despite this optimism, the study reveals that:
- 92% say legacy systems are holding back transformation efforts, but less than half have conducted infrastructure readiness assessments
- Only 47% strongly agree their organization follows a robust AI ethics and governance framework
- Two-thirds admit their workforce lacks the skills to effectively use GenAI
- Just 41% feel confident about their data storage and processing capacity for GenAI workloads
“Companies failing to plan, deploy, and govern GenAI strategically will not only have a problem—they may be planning to fail,” added Saxena.
Closing the Readiness Gap
To fully unlock the benefits of GenAI, the report emphasizes the need for coordinated investments in data management, AI governance, upskilling initiatives, and modernizing legacy systems. NTT DATA warns that without these foundational shifts, the industry risks widening the digital divide between early adopters and those left behind.
