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Rootstock AI in Manufacturing Survey Reveals Increasing AI Budgets

January 30, 2025
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Rootstock Software, in its 2nd Annual State of AI in Manufacturing Survey, reveals ongoing momentum for artificial intelligence (AI) adoption within the industry. The survey, encompassing 370-plus U.S., U.K. and Canadian manufacturers, highlights key trends in AI usage, investment priorities and the crucial role of ERP solutions. As AI-driven transformations accelerate, 82% of surveyed manufacturers report plans to expand AI budgets over the next 12 to 18 mo., with 23% expecting significant increases of 26 to 50%.

Other survey findings:

  • More than 77% of manufacturers have implemented AI solutions, a rise from 70% in 2023, with applications spanning from production (31%) to inventory management (28%) and customer service (28%)—reflecting AI’s growing role in optimizing day-to-day operations.
  • Manufacturing professionals favor “copilots” (53%), which support human roles, rather than fully autonomous agents that could replace human resources. This indicates a strong preference for collaborative AI capabilities that enhance workforce productivity while maintaining human oversight.
  • AI for supply-chain management (49%) and big data/analytics (43%) rose as leading drivers for AI investment, highlighting a strategic focus on balancing demand, supply and production with AI’s predictive capabilities.
  • ERP solutions remain crucial for successful AI usage, with manufacturers relying on an ERP to contextualize and manage data. However, 56% of manufacturers expressed uncertainty about their ERP systems’ readiness for AI integration, underscoring the ongoing need for ERP modernization.

Despite significant advancements, manufacturers still face obstacles to AI adoption. A lack of internal expertise (45%) and integration challenges with existing systems (44%) remain top barriers. The skills gap increasingly is addressed through training and upskilling (60%), with additional reliance on intuitive AI technologies that help ease the transition (41%).

“We are witnessing a pivotal moment where manufacturers are adopting AI not just as a productivity tool but as a strategic asset,” says said Raj Badarinath, Rootstock chief product and marketing officer. “Manufacturers that embrace AI within a strong ERP will be well-positioned to lead in an AI-driven market.”

Download Rootstock’s full report at clouderp.rootstock.com/state-of-ai-manufacturing-survey-2025.

 

See also: Rootstock Software

Technologies: Management

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