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Assembly Breaking News IndustriesManufacturing SoftwareManufacturing Management

AI Use Expands Across Manufacturing, Study Finds, but Scaling Remains Limited

By JJ Moore
Infographic showing 93% of manufacturers plan to adopt new technology in 2026, 77% increased their software budgets for the year, and 56% use AI in limited areas of work.
Courtesy: Revalize
February 3, 2026

JACKSONVILLE, Fla.– After years of experimentation, artificial intelligence is now a core priority for manufacturers, but a new study shows that adoption is moving faster than the foundations needed to support it.

A new report released by Revalize, a software solutions provider, shows that manufacturers are all-in on AI, automation and Industry 5.0. However, execution is becoming the differentiator. AI is everywhere, integration remains uneven and talent shortages continue to slow progress.

AI Adoption Is Universal, but Full Integration Is Rare

The study found that 100% of manufacturing leaders surveyed said their organizations are using AI in some form, ranging from small pilots to deployment across multiple processes. Predictive maintenance and quality control are the most common use cases, reflecting a focus on near-term operational gains.

Yet widespread use has not translated into enterprise-wide transformation. More than half of manufacturers (56%) said AI is implemented only in select areas, and just 10% reported that AI is fully embedded across their operations. The gap highlights a central tension: manufacturers are investing aggressively in AI, but most have not yet scaled it across engineering, production, supply chain and commercial functions.

Integration and Data Quality Are the Primary Barriers to AI at Scale

The biggest obstacles to AI adoption are no longer technical ambition, but system complexity. Nearly one-third of manufacturers cited software platform integration as a top challenge, while others pointed to workload prioritization and data management issues.

Manufacturers continue to operate with sprawling IT environments built on legacy systems, resulting in fragmented and inconsistent data. The study emphasizes that enterprise-ready AI depends on clean, structured and integrated data, something many manufacturers still lack. Poor data quality not only limits AI’s effectiveness but introduces risk, as incomplete or inaccurate data can undermine model accuracy and decision-making.

As a result, manufacturers are increasing software budgets to address these issues. More than three-quarters of respondents said their software spending increased over the past year, driven largely by the need to support automation initiatives.

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

Talent, Not Technology, May Be the Tightest Constraint

While manufacturers are investing heavily in AI tools, the study shows that workforce readiness is lagging. Globally, more than one-third of manufacturers said their teams are most in need of AI skills. The need is even higher among U.S. manufacturers, in particular, with 44% of respondents citing this as a key issue.

This shortage compounds integration challenges, according to the report, as organizations lack the internal expertise needed to deploy AI responsibly, manage models and extract value from advanced analytics. Manufacturers that fail to close these gaps risk underutilizing their technology investments or creating operational blind spots.

In response, manufacturers are prioritizing upskilling existing employees, staying current on technology trends and establishing stronger product and data backbones. Leaders expressed confidence in their ability to support Industry 5.0 goals, but the study suggests that success will depend less on buying new tools and more on building the skills and data infrastructure to use them effectively.

Revalize commissioned TEAM LEWIS to survey 500 decision-makers who use or oversee CPQ, PLM and engineering modeling or simulation software at manufacturing companies with at least 100 employees. The survey included respondents in the United States, Austria, Germany and Switzerland. The survey was conducted in fall 2025. Respondents were recruited by OpinionRoute, a global market research panel provider.



KEYWORDS: Artificial Intelligence (AI) skilled labor shortage skills gap workforce

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Jj moore author

JJ joined ASSEMBLY Magazine in 2026. He has over a decade of writing and editing experience. As a lifelong learner, he particularly enjoys covering topics that are new to him and likes to keep up on emerging trends.

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