The State of AI: Manufacturing 2025

In 2024, as artificial intelligence (AI) became more accessible, manufacturing companies realized the true potential of this technology. AI initiatives are now an integral part of their overall digital transformation strategy and manufacturers are making significant investments in AI and generative AI. This trend will continue in 2025 and beyond.

According to Deloitte’s 2025 Manufacturing Industry Outlook, ¹ looking ahead to 2025, manufacturers are expected to continue to face a challenging and uncertain business climate due to a combination of higher costs, potential policy changes following the US and global elections, and geopolitical uncertainty.

“Identifying targeted opportunities to invest in AI, including generative AI, may be key for manufacturers in 2025 as elevated costs and uncertainty are expected to continue in the coming year. Improved efficiency, productivity, and cost reduction have been identified as important benefits achieved through generative AI implementation,” according to the Deloitte article.

In 2023, the National Association of Manufacturing Leadership Council, ² a global network of executives in the manufacturing industry, conducted surveys on how manufacturers use AI in their operations to explore some of the ways it is already making an impact. When asked about why they were investing in digitally integrated technologies such as AI, respondents pointed to cost reduction, operational awareness, and process optimization.

AI represents a tremendous opportunity across the manufacturing industry. To successfully implement and benefit from AI in 2025, manufacturers will need to develop a clear AI strategy, optimize operations, and manage risks.

In the following pages, three industry experts share their insights on the future outlook for AI in manufacturing:

The Future of AI for Aerospace Manufacturing

How AI Impacts an Industrial Machinery Manufacturer’s Design Process

Artificial Intelligence and Industrial Robotics: Far beyond the Hype