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TechnologiesAutomated Assembly Systems

Assembly Lines

AI’s Increasing Role in Manufacturing Spurs Call for New Policies

By Austin Weber
appliance assembly plant
Photo courtesy Beko B.V.

Manufacturers are using artificial intelligence technology to address labor shortages and improve product quality.

Photo courtesy Beko B.V.

July 8, 2025

WASHINGTON—A new report by the National Association of Manufacturers (NAM) claims that more than 50 percent of U.S. companies plan to increase investments in artificial intelligence technology during the next two years. “Shaping the AI-Powered Factory of the Future” was conducted by NAM’s Manufacturing Leadership Council.

“The report reinforces the need for modernized, agile, pro-manufacturing AI policy so that manufacturers can continue to innovate on shop floors across America,” says Jay Timmons, president and CEO of NAM. “We look forward to continuing to champion AI leadership and manufacturing in America, which starts with adopting a pro-AI regulatory framework and pursuing policies that bolster innovation.”

According to Timmons, the growing importance of AI underscores the need for “a policy framework that supports [domestic] AI growth, innovation and leadership—one that streamlines compliance, fosters transparency and aligns energy, workforce, privacy and innovation rules with the realities of smart manufacturing.”

The NAM report claims that 51 percent of U.S. manufacturers already use AI in their operations, with 61 percent expecting investments will increase by 2027. By 2030, 80 percent of manufacturers predict AI will be essential to growing or maintaining their business.

However, the report also illustrates that manufacturers face ongoing barriers to using and scaling AI. Data quality and accessibility are the top challenges, with 65 percent of respondents reporting they lack the right data for AI applications and 62 percent citing data that is unstructured or poorly formatted.

Another recent study conducted by Rockwell Automation Inc. claims that 95 percent of manufacturers around the world are in the process of investing in AI to navigate uncertainty and accelerate smart manufacturing. Those companies are turning to technology such as machine learning and cloud-based systems to manage risks, improve performance and support their employees.

“Today’s technology advancements are unlocking new opportunities where the combined potential of people and technology will shape our collective future,” says Blake Moret, chairman and CEO of Rockwell Automation. “Manufacturers around the world are using smart manufacturing to navigate disruption and create new opportunities for speed and agility.”

Among the findings, 81 percent of manufacturers say external and internal pressures are accelerating digital transformation, with AI, cybersecurity and quality management ranking as the top investment areas.

More than one-third (41 percent) are using AI and automation to help close the skills gap and address labor shortages, while 50 percent are harnessing AI to support product quality initiatives.

Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM →

KEYWORDS: advanced manufacturing Artificial Intelligence (AI) assembly line automation Industry 4.0

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Austin has been senior editor for ASSEMBLY Magazine since September 1999. He has more than 21 years of b-to-b publishing experience and has written about a wide variety of manufacturing and engineering topics. Austin is a graduate of the University of Michigan.

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