Global manufacturers are accelerating their shift toward AI-driven operations, with a large majority expecting artificial intelligence to play a central role in both profitability and decision-making over the next three years, according to the Future-Ready Manufacturing Study 2025 released by Tata Consultancy Services (TCS) in collaboration with Amazon Web Services (AWS).
The report finds that global manufacturers are rapidly advancing toward intelligence-driven operations and higher levels of autonomy in manufacturing processes, even as foundational readiness gaps persist. While 75% of respondents expect AI to be among the top three contributors to operating margins by 2026, only 21% say they are fully AI-ready, indicating significant work ahead on data, integration and systems.
TCS says AI is reshaping manufacturing performance
“Manufacturing is an industry defined by precision, reliability, and the relentless pursuit of performance. Today, that strength of foundation becomes multi-fold with AI in orchestrating decisions—delivering transformational business outcomes through greater predictability, stability, and control,” Anupam Singhal, president – manufacturing at TCS, said.
He added, “At TCS, we see this as a defining opportunity to help manufacturers build resilient, adaptive, and future-ready enterprise ecosystems that can thrive in an era of intelligent autonomy.”
The study, which surveyed 216 senior leaders across North America and Europe, highlights rapid progress in operational AI adoption. Nearly 40% of manufacturers report early gains from AI-driven quality and planning use cases, while Agentic AI is emerging as a core capability for autonomous decision-making. The report notes that 74% expect AI agents to manage 11–50% of routine production decisions by 2028, signalling a significant shift towards self-optimising factories.
AWS flags rising pressures on global manufacturers
AWS emphasised the scale of transformation underway. “Manufacturers today are facing unprecedented pressure — from tight margins to volatile supply chains and workforce gaps,” Ozgur Tohumcu, General Manager – Automotive and Manufacturing at AWS, noted.
He added that AWS is enabling a shift from reactive processes to more autonomous operations using AI-powered solutions that operate at scale.
“This study makes it clear: the future of manufacturing is not just digital, it is autonomous — powered by AI that learns, evolves, and operates continuously,” Tohumcu said.
Among other findings, 67% of leaders report improved real-time supply-chain visibility, and more than 30% expect meaningful productivity gains from AI-led modernisation. These trends, the study notes, point to a sector preparing to operate with greater intelligence, resilience, and agility across the entire manufacturing value chain.
