Manufacturers are ready to invest in AI according to a new report from Augury. The AI solutions provider in the health and process health sector released its annual State of Production Health Report this month which identifies challenges, trends and best practices in manufacturing’s quest to balance the competing demands of profits, people and the planet. New data shows that 83 percent of respondents are investing in AI in 2024, compared to 63 percent in 2023. The report also found a 300 percent year-over-year increase in respondents who said there are no roadblocks to AI adoption. 

“Our 2024 findings paint a positive outlook for the industrial sector and technology adoption, as almost all (96 percent) leaders feel optimistic about manufacturing’s future,” said Saar Yoskovitz, Augury’s CEO and co-founder. “Manufacturers’ trust in the value of AI is rapidly growing as they enhance their organizations’ AI skills and achieve higher returns. While measuring AI’s influence on vital business objectives remains challenging for some, many industrial leaders have found their footing in 12 short months. This group of innovators will pull ahead as industry leaders and provide a blueprint for achieving the Industry 4.0 ideal.”

Nearly 90 percent of manufacturers reported they anticipate more frequent supply chain disruptions over the next 12 months. Despite the “great promise” of AI, many manufacturers are concerned about the complex relationship between supply chain hurdles and AI. 

Supply chain was named the top production obstacle by 25 percent of respondents, and leveraging AI is still a low-ranked objective. Increasing capacity, however, is now the number-one objective for leveraging AI, according to 44 percent of respondents. 

Manufacturers are also concerned about the pace at which their staff can keep up with AI. Nearly 91 percent of industrial leaders worry that retiring veterans exacerbate the knowledge gap in manufacturing. 

Upskilling the workforce will be necessary to meet this challenge with 97 percent of respondents saying that AI and advanced technologies will help create new jobs in the manufacturing industry.

“Though AI has started proving its effectiveness, nine out of ten industrial leaders say that just 11 percent to 50 percent of their AI pilots have reached scale,” Yoskovitz added. “To bridge this gap, manufacturers are increasing AI spending. It will be critical to target investments specifically around production health solutions to better visualize and act on data that connects machines, processes and operations. Those who do will be better positioned to meet production goals while addressing today’s key challenges for manufacturers.”