Report finds manufacturers are optimistic about AI and see ERP as a critical infrastructure to support their investments

Rootstock Software, a recognized leader in the Manufacturing Cloud ERP space, today announced results from its State of AI in Manufacturing Survey. Compiled based on a survey of 350 manufacturers in the U.S., U.K. and Canada, the study assesses how manufacturers are currently using AI and their plans for future adoption. Most notably, the survey revealed that despite economic headwinds, 82% of surveyed manufacturers plan to increase their budgets for AI in the next 12-18 months, with 24% planning substantial increases that are between 26-50%.

In the year since ChatGPT was first introduced, AI has created a groundswell of interest across industries—particularly in manufacturing. Manufacturers have long needed tools capable of rapidly transforming operational, supply chain, and production processes, which are the exact areas where AI can drive significant value. As manufacturers seek to take advantage of AI, they’ll need to have the proper digital infrastructure and a keen understanding of how the technology is likely to impact their workforce. This survey was designed to help guide that shift by understanding the needs of the modern-day manufacturer in the wake of rising interest in AI.

“We are witnessing the dawn of a new era powered by AI, and manufacturers are eagerly embracing these tools as they’ve seen its potential to unlock powerful data insights across critical functions such as inventory, production planning, supplier collaboration, and more,” said Raj Badarinath, Chief Product & Marketing Officer at Rootstock Software. “While AI is not a new concept in the industry, we’re still just scratching the surface of what is possible. As our survey indicates, manufacturers need a solid ERP foundation in place to successfully leverage AI-powered tools.”

Additional key findings from the 2023 State of AI in Manufacturing Report include:

• Manufacturers are welcoming AI with open arms. Over 70% of respondents say they have implemented some form of AI into their operations already. Automation software is the most used type of AI at this stage (60%), though manufacturers are exploring other types, including Predictive AI (37%) and Generative AI (35%).
• The AI skills gap and integration complexities could prevent adoption. Respondents indicate that the biggest barrier to adoption is a lack of internal knowledge (49%) – followed by difficulty integrating (43%) and high implementation costs (37%).

• Manufacturers believe ERP is key to AI adoption. ERP is listed as the top technology to impact an organization’s ability to adopt and integrate more AI-powered tools over the next three years (as chosen by 47% of respondents).
• Confidence in data quality is low. AI is only successful if it has quality, accurate data powering it; unfortunately, only 37% of manufacturers are very or extremely confident in the data underpinning their AI initiatives.

• Manufacturers do not fear AI. Only 12% of surveyed manufacturers fear that AI will take their job. In fact, the majority (76%) are somewhat, very or extremely excited to use AI.

• AI is integral to the forward trajectory of the industry. Nearly every respondent (91%) agrees that AI is important to the future of manufacturing.

“There has been enormous pressure on manufacturers to find new ways to improve productivity and increase efficiency in their operations, so it’s satisfying to see how AI is accelerating those initiatives,” added Rootstock’s Vice President of Product Marketing, Stu Johnson. “As the available capabilities and integrations involving AI continue to advance, we’ll see a clear division between the leaders and laggards—with early adopters dominating their respective manufacturing segments.”

For complete survey findings and details, check out Rootstock’s analysis here.

Methodology

In partnership with Researchscape, Rootstock conducted this research via an online survey fielded in October 2023. There were 350 respondents to the survey across the U.S., U.K. and Canada in organizations with 100+ employees.

About Rootstock

Rootstock Software provides the leading Manufacturing Cloud ERP, which empowers hundreds of manufacturers to turbocharge their operations in today's dynamic, post-pandemic world. Natively built on the Salesforce Platform, Rootstock delivers a futureproof solution. With it, manufacturers gain the agility to continually transform their businesses to meet evolving customer needs, navigate emerging challenges, and accelerate success. In addition, the "connectability" of Rootstock Cloud ERP gives manufacturers 360° visibility to collaborate with suppliers, trading partners, and the broader value chain. As Rootstock continues to grow, stay tuned to hear about its new customers, career opportunities, and LinkedIn posts.

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