**London**: A new survey reveals that 82% of manufacturers plan to increase AI budgets, with 77% already using AI solutions. The focus on integrating AI with ERP systems signifies its strategic importance in enhancing operational efficiency and supply chain resilience amid ongoing digital transformations.
A recent survey conducted by Rootstock Software reveals a significant shift towards artificial intelligence (AI) within the manufacturing sector, highlighting the critical role of supplier relationship management (SRM) in the broader context of digital transformation. The 2nd Annual State of AI in Manufacturing Survey gathered insights from more than 369 manufacturers across the U.S., U.K., and Canada and shows that 82% of participants plan to expand their AI budgets over the next 12 to 18 months.
The results indicate that 77% of surveyed manufacturers have implemented AI solutions, a notable increase from 70% in 2023. Applications of AI are being utilised in various areas, including production (31%), inventory management (28%), and customer service (28%). This trend underscores AI’s imperative role in streamlining operations and enhancing supply chain resilience.
Raj Badarinath, Chief Product & Marketing Officer at Rootstock Software, emphasised the integration of AI with enterprise resource planning (ERP) systems, noting that as AI applications evolve, manufacturers are increasingly relying on these systems “to anchor their AI investments”. This indicates that a robust digital infrastructure is in demand to support strategic decision-making in manufacturing.
The focus on AI in supply chain management is apparent, with 49% of respondents identifying it as a leading investment driver. The survey also marked a preference among professionals for collaborative AI technologies—referred to as “copilots”—which support human roles over fully autonomous agents. This reveals a trend towards enhancing workforce productivity without entirely replacing human oversight.
Despite the enthusiasm for AI, the survey highlights persistent challenges. A lack of internal expertise was cited by 45% of manufacturers as a barrier to adoption, while 44% reported difficulties with integrating AI into existing systems. In response, many manufacturers are addressing the skills gap through training and upskilling initiatives.
Badarinath remarked on the evolving perspective towards AI in manufacturing, stating, “We are witnessing a pivotal moment where manufacturers are adopting AI not just as a productivity tool but as a strategic asset.” This sentiment aligns with the survey’s findings that manufacturers who effectively integrate AI within robust ERP systems are likely to gain competitive advantages in an increasingly digitised marketplace.
As the manufacturing industry continues to embrace digital transformations driven by AI, the implications for supply chain management and strategic supplier relationships are significant. The need for modernized ERP solutions becomes critical to ensure that organisations can leverage AI’s predictive capabilities to balance demand and supply effectively, ultimately driving revenue and enhancing operational efficiency.
Source: Noah Wire Services
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