NTT Data: Gen AI’s Potential for Manufacturing Challenges
Gen AI is changing factory operations worldwide.
Following decades of incremental improvements through automation and traditional AI applications, Gen AI is evolving manufacturing processes from design to delivery.
This technology, which can generate new content and solutions based on existing data inputs, is being integrated as manufacturers face pressures from global supply chain disruptions, labour shortages and increasing demands for customisation and sustainability.
Now, new research from NTT Data suggests that manufacturing organisations globally are increasingly adopting Gen AI to establish smart factories and improve operational performance.
However, most manufacturers lack essential usage policies and governance frameworks to manage associated risks.
The benefits Gen AI brings to manufacturing
The report, titled: Feet on the Floor, Eyes on AI: Do you have a plan or a problem?, surveyed over 500 manufacturing leaders across 34 countries to assess the current state of Gen AI adoption in the sector.
The research finds that 95% of respondents report Gen AI is already improving efficiency and performance.
Furthermore, 94% expect combining Internet of Things (IoT) data with Gen AI models will enhance the accuracy of AI outputs.
Digital twins are also proving valuable when paired with Gen AI capabilities. According to the survey, 91% of manufacturers believe this combination improves both physical asset performance and supply chain resilience.
The findings suggest current applications are focused on supply chain and inventory management, knowledge management, quality control, research and development and process automation.
“AI is streamlining processes and redefining what's possible across the entire manufacturing value chain, from supply chain predictions to quality control,” says Prasoon Saxena, Co-Lead, Products Industries at NTT Data.
“Gen AI can help organisations achieve flexibility in fast-changing business environments, especially in the face of uncertain tariff policies worldwide.”
The barriers to Gen AI implementation
Despite enthusiasm for Gen AI, manufacturers face significant challenges.
NTT Data finds that legacy technologies remain a barrier for 92% of respondents, yet less than half have conducted comprehensive infrastructure assessments to address these limitations.
Data storage presents another obstacle, with just 41% of manufacturing leaders confident they have sufficient capacity to support growing Gen AI workloads.
The workforce skills gap also is a critical concern, as two-thirds of manufacturers report their employees lack the necessary skills to use Gen AI effectively, creating operational disadvantages and potential risks.
Nick Smith, UK Sector Lead for Industry at NTT Data says: “The manufacturing sector is under pressure from rising costs, global competition, varying local regulation and increasing complexity across supply chains.
“Gen AI holds enormous potential for UK manufacturers looking to overcome these challenges, upskill their workforce and modernise core systems.
“Manufacturing organisations who build a strategic, responsible approach to this technology – integrating it with IoT Data digital twins and robust data foundations – will lay the digital foundations for their success over the next decade and set the pace for the next era of British industry.”
Perhaps most concerning is the governance gap. While ethical AI implementation is recognised as important, only 47% of manufacturing leaders strongly agree their organisation follows a robust framework that balances risk with value creation.
“The most successful manufacturing organisations have already integrated GenAI into essential operations,” Prasoon adds.
“Companies failing to plan, deploy and govern Gen AI strategically will not only have a problem, they may be planning to fail.”
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