**Global**: A global NTT DATA survey shows 95% of manufacturing leaders see generative AI boosting efficiency, yet 92% face legacy system barriers and skills shortages threaten scaling. UK workers report widespread AI use, but governance and infrastructure gaps risk undermining long-term adoption.
A recent global survey conducted by NTT DATA indicates a notable shift in the manufacturing sector, with generative AI (GenAI) increasingly being integrated into core business functions, particularly in supply chain and inventory management. The report reveals that 95% of manufacturing leaders assert that GenAI enhances operational efficiency and profitability. Furthermore, 91% of these leaders believe that the combination of GenAI and digital twins will significantly improve asset performance and strengthen supply chain resilience.
The survey, which encompassed over 500 decision-makers across 34 countries, identified several primary applications for GenAI, including supply chain planning, inventory optimisation, knowledge management, and quality control. These developments are not trivial; for supply chain directors, GenAI represents a pivotal tool in addressing market volatility, refining demand planning, and optimising throughput.
In an official statement, Prasoon Saxena, Co-Lead of Products Industries at NTT DATA, remarked, “AI is streamlining processes and redefining what’s possible. GenAI helps organizations achieve flexibility in fast-changing business environments, especially in the face of uncertain tariff policies worldwide.”
However, despite the clear advantages of GenAI, manufacturers are encountering significant challenges. A striking 92% of survey participants reported that outdated legacy systems are hindering the advancement of GenAI initiatives. Additionally, fewer than half of the respondents had undertaken assessments to determine their infrastructure’s readiness for such transformative technologies. This disconnect suggests that many AI projects may remain at a trial stage without essential upgrades to data management systems and cloud capabilities.
Talent acquisition presents another barrier, with two-thirds of respondents acknowledging a lack of essential skills within their workforce to fully leverage GenAI’s capabilities. Alarmingly, only 41% expressed strong confidence in their organisation’s storage and computational capabilities, highlighting persistent concerns regarding scalability.
Governance also poses a challenge, with less than half of the leaders indicating that their companies adhere to a comprehensive ethical framework for AI usage. This absence of structured oversight raises potential compliance, privacy, and reputational risks as AI technologies become increasingly integral to decision-making processes.
As Saxena noted, “The most successful manufacturing organizations have already integrated GenAI into essential operations. Companies failing to plan, deploy, and govern GenAI strategically will not only have a problem—they may be planning to fail.”
In the UK, a separate survey conducted by The Access Group revealed that 57% of manufacturing employees are currently utilising AI tools such as ChatGPT in their daily responsibilities, with 93% reporting positive outcomes ranging from reduced workloads to enhanced productivity. This rapid adoption reflects genuine momentum in the sector, yet it also underscores a gap between employee experience and senior leadership’s understanding of AI applications.
While GenAI is increasingly recognised for its potential to enhance efficiency, resilience, and responsiveness in manufacturing—especially within supply chains—NTT DATA’s findings caution that initial enthusiasm does not equate to long-term preparedness. The path forward involves transforming experimentation into structured implementation, which necessitates thorough evaluations of infrastructure capabilities, recognition of skill gaps, and the establishment of governance that is both effective and future-oriented.
As the manufacturing industry continues to navigate these complexities, the effective integration of GenAI may prove essential for companies aiming to remain competitive in a rapidly evolving landscape.
Source: Noah Wire Services
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