Rootstock AI in Manufacturing Survey Reveals Increasing AI Budgets
January 30, 2025Comments
Rootstock Software, in its 2nd Annual State of AI in Manufacturing Survey, reveals ongoing momentum for artificial intelligence (AI) adoption within the industry. The survey, encompassing 370-plus U.S., U.K. and Canadian manufacturers, highlights key trends in AI usage, investment priorities and the crucial role of ERP solutions. As AI-driven transformations accelerate, 82% of surveyed manufacturers report plans to expand AI budgets over the next 12 to 18 mo., with 23% expecting significant increases of 26 to 50%.
Other survey findings:
- More than 77% of manufacturers have implemented AI solutions, a rise from 70% in 2023, with applications spanning from production (31%) to inventory management (28%) and customer service (28%)—reflecting AI’s growing role in optimizing day-to-day operations.
- Manufacturing professionals favor “copilots” (53%), which support human roles, rather than fully autonomous agents that could replace human resources. This indicates a strong preference for collaborative AI capabilities that enhance workforce productivity while maintaining human oversight.
- AI for supply-chain management (49%) and big data/analytics (43%) rose as leading drivers for AI investment, highlighting a strategic focus on balancing demand, supply and production with AI’s predictive capabilities.
- ERP solutions remain crucial for successful AI usage, with manufacturers relying on an ERP to contextualize and manage data. However, 56% of manufacturers expressed uncertainty about their ERP systems’ readiness for AI integration, underscoring the ongoing need for ERP modernization.
Despite significant advancements, manufacturers still face obstacles to AI adoption. A lack of internal expertise (45%) and integration challenges with existing systems (44%) remain top barriers. The skills gap increasingly is addressed through training and upskilling (60%), with additional reliance on intuitive AI technologies that help ease the transition (41%).
“We are witnessing a pivotal moment where manufacturers are adopting AI not just as a productivity tool but as a strategic asset,” says said Raj Badarinath, Rootstock chief product and marketing officer. “Manufacturers that embrace AI within a strong ERP will be well-positioned to lead in an AI-driven market.”
Download Rootstock’s full report at clouderp.rootstock.com/state-of-ai-manufacturing-survey-2025.
See also: Rootstock Software
Technologies: Management