In this episode of The Manufacturer podcast, we revisit our discussion with Robert Garratt of IBM and Dominic Regan of Oracle, following the release of The Manufacturer AI Readiness Index.
AI is rapidly moving from experimentation towards implementation across industry. But as manufacturers begin to explore how the technology can deliver tangible business value, new questions are emerging, such as; where should AI be deployed, what problems can it solve, and are manufacturers ready to make the most of it?
While AI adoption in manufacturing is certainly not new, the research points towards a shift in the industry’s approach. Manufacturers are increasingly moving beyond simply exploring what AI might be capable of and towards understanding how it can be implemented to deliver meaningful results.
However, the journey is far from straightforward. More than 70% of manufacturers surveyed for the AI Readiness Index described themselves as being at an early stage of their AI journey, while almost one in five remain unsure about the value the technology could bring to their organisation. For an industry that has long embraced sophisticated digital technologies, it raises the question – why is AI adoption proving more complicated?
In the podcast, Robert and Dominic explore some of the reasons behind this apparent gap, considering how manufacturing’s existing digital capabilities compare with other sectors and where the most immediate opportunities for AI adoption may lie.
Much of the current focus is on using AI to improve internal operations, reduce costs and enhance productivity. But the conversation also considers whether this focus on efficiency risks overlooking a much bigger opportunity – using AI to rethink processes, create new business outcomes and support future growth.
Getting the foundations right will be crucial. Data quality, governance and trust are emerging as key considerations for manufacturers looking to scale AI, while a shortage of the right skills presents another significant barrier. Importantly, the skills required may not simply be technical. Understanding business processes and identifying where AI can genuinely improve an outcome could prove just as important.
The discussion also looks ahead to the next phase of AI in manufacturing, including the growing potential of agentic AI and its ability to move beyond simply supporting existing processes.
Indeed, one of the most intriguing possibilities discussed is that AI could eventually help businesses identify where AI itself could be most effectively deployed – analysing processes and operations and recommending where improvements could be made.
As the pace of AI development continues to accelerate, manufacturers will need to keep moving with it.
Listen to the full episode above to hear Robert and Dominic discuss the findings of The Manufacturer AI Readiness Index, the barriers facing manufacturers and where the biggest opportunities for AI adoption could emerge.
