#USA #AI #Vienna #Automation #Redwood Software

The State of AI in Manufacturing: A Look Ahead to 2026

As the manufacturing sector steadily embraces automation, a recent report from Redwood Software sheds light on the outlook for AI and automation in the industry by the year 2026. Based on a global survey of 300 manufacturing professionals conducted through Leger Opinion, significant insights about current automation practices and preparedness for AI implementation were unearthed.

Key Findings

1. Automation Readiness

The report emphasizes that a staggering 98% of manufacturers are actively exploring or considering AI-based automation. However, this enthusiasm is muted by a troubling statistic – only 20% feel fully prepared for comprehensive AI adoption. The disconnect points to a significant gap in maturity regarding the automation processes currently in place.

2. Automation Progress

Despite the overwhelming interest in AI, the findings reveal that 70% of manufacturers have automated 50% or fewer of their core operations. This stunted progress highlights a plateau in automation maturity, with many manufacturers still completing tasks and processes within isolated systems rather than achieving an integrated flow of operations.

3. Impact of Automation

Interestingly, 60% of participants reported achieving a 26% or more reduction in unplanned downtime thanks to automation. Yet, the implementation of automation remains partial, with only 40% having automated exception management – a critical area flagged as particularly disruptive to overall operational efficiency.

4. Data Transfer Challenges

A significant 78% of respondents have automated less than half of their critical data transfers, which they acknowledge restricts their capacity for real-time decision-making. Moreover, inventory turnover continues to present challenges, underscoring the limitations of isolated execution, despite the advances gained through automation.

5. Maturity Levels and Client Experience

The report indicates that Redwood Software clients are 2.7 times more likely to be in the middle or high stages of automation maturity. This statistic emphasizes the positive correlation between the use of a strategic orchestration platform and greater automation efficacy.

Challenges in Automation

The study notes that many manufacturers are reaching the limits of isolated execution, with fragmented jurisdictions causing bottlenecks. It reveals that although there is widespread ambition for AI adoption, many companies are hindered by outdated practices like manual data transfers and insular automation strategies.

Recommendations for Manufacturers

Kevin Greene, CEO of Redwood Software, states, "Manufacturers are not failing at automation but are encountering the constraints of disjointed execution systems. With powerful automation already embedded within these companies, inefficiencies are caused by fragmented workflows impacted by unaddressed exceptions and delayed data flows."

To combat these challenges, the report advocates for manufacturers to focus on orchestrating workflows, data flows, and exception management across all system environments. This holistic approach is crucial for overcoming the intermediate maturity trap and preparing for an AI-driven future.

The Path Forward

As the manufacturing industry progresses toward AI-driven operations, the report asserts that effective orchestration will enable faster production rates without compromising quality. It emphasizes that the integration of a Service Orchestration and Automation Platform (SOAP) like Redwood's RunMyJobs can unify these fragmented aspects of manufacturing operations, maximizing the potential for scalability in both automation and AI.

Access to the Full Report

For organizations looking to dive deeper into the intricate dynamics of automation maturity and AI preparedness, the full report, titled "Outlook on AI and Automation in Manufacturing for 2026," is available for download. This resource provides detailed insights into operational bottlenecks and highlights the divergent perceptions between executive teams and frontline workers.

About Redwood Software

Redwood Software is at the forefront of business orchestration, enabling companies to efficiently automate critical business processes across complex information systems, including ERP, cloud integrations, and emergent AI technologies. With over 30 years of experience assisting Fortune 50 companies, Redwood aids organizations in unlocking human potential, thereby fostering innovation and future growth. Visit www.redwood.com and follow Redwood on LinkedIn at @Redwood Software for more information.