New Report from the Manufacturing Leadership Council Shows More Than Half of Manufacturers Expect Investment in AI to Increase in the Next Two Years
Washington, D.C. – The Manufacturing Leadership Council, the digital transformation division of the National Association of Manufacturers, today released a groundbreaking report, “Shaping the AI-Powered Factory of the Future,” that reveals how manufacturers are embracing artificial intelligence on shop floors. The report, a product of the MLC’s “Future of Manufacturing Project,” underscores the need for a policy framework that supports U.S. AI growth, innovation and leadership—one that streamlines compliance, fosters transparency and aligns energy, workforce, privacy and innovation rules with the realities of smart manufacturing.
AI has become essential to modern, competitive manufacturing in America: for example, manufacturers use cutting-edge AI tools like AI-powered cameras to enhance worker safety and eliminate product defaults, AI simulations to design new products and optimize shop floor operations, and AI data analytics to control costs and manage supply chains more efficiently. Manufacturers are also embedding AI in new, intelligent products. The report shows that 51% of manufacturers already use AI in their operations, with 61% expecting investment in AI will increase by 2027. By 2030, 80% say AI will be essential to growing or maintaining their business.
The report also illustrates that manufacturers face ongoing barriers to using and scaling AI—indicating data quality and accessibility as the top challenges, with 65% of respondents reporting they lack the right data for AI applications and 62% citing data that is unstructured or poorly formatted.
“Artificial intelligence isn’t new to manufacturing. For years, manufacturers have been developing and deploying AI-driven technologies—machine vision, digital twins, robotics and more—to make shop floors smarter, supply chains stronger and workplaces safer,” said NAM President and CEO Jay Timmons. “The latest report from the MLC reinforces the need for modernized, agile, pro-manufacturing AI policy solutions, so that manufacturers can continue to innovate on shop floors across America. Manufacturers welcomed President Trump’s early commitment to maintaining and advancing America’s global AI dominance, and we look forward to continuing to champion American AI leadership and manufacturing in America, which starts with adopting a pro-AI regulatory framework and pursuing policies that bolster innovation.”
As manufacturers seek to expand their use of AI and unlock its full potential at scale, the report also highlights areas where manufacturers may face challenges and require additional investment, such as modernizing data architectures, developing a more knowledgeable workforce, building organizational trust and accelerating legacy infrastructure upgrades.
The NAM has proposed a series of policy recommendations for policymakers to drive AI development and adoption in manufacturing:
- Adopt a pro-AI regulatory approach given the growing number and variety of use cases in AI in manufacturing, which require an optimized regulatory environment.
- Develop the manufacturing workforce of the AI age by supporting training programs, career and technical education institutions and STEM education and immigration. According to the MLC’s report, 82% of manufacturers cite a lack of AI-ready skills as the top workforce challenge.
- Advance energy and permitting reform to support AI-related data center growth.
- Protect personal data by passing a comprehensive privacy law that preempts state laws, provides liability protections that prevent frivolous litigation and adopts a risk-based approach that enables innovation and AI.
- Support U.S. manufacturing of AI chips by executing funding agreements with chip manufacturers and renewing the Advanced Manufacturing Investment Credit.
- Incentivize U.S. AI innovation by passing the One Big Beautiful Bill Act that preserves pro-manufacturing tax policies.
“A worldwide competition for AI supremacy is underway, and manufacturers have the opportunity to lead the charge with this game-changing technology,” said MLC Founder, Vice President and Executive Director David R. Brousell. “Fast-moving developments in the technology have turbo-charged interest and adoption of AI in its many forms, intensifying competition. To win, manufacturers in America need a strong ecosystem of partners and support to create new, competitive advantages in all facets of the manufacturing industry, from operations, to supply chains, to the workforce—and in their efforts to innovate for the future.”
Background:
Manufacturers have been at the forefront of developing and implementing cutting-edge AI systems that are transforming shop floors and revolutionizing operations.
In March, the NAM submitted comments to inform the White House’s development of an AI Action Plan, explaining how manufacturers are using AI on the shop floor and in operations, with specific recommendations on rebalancing and right-sizing AI regulations to enhance America’s global AI dominance.
In May 2024, the NAM published “Working Smarter: How Manufacturers Are Using Artificial Intelligence”—a report that explains the ways in which manufacturers are already using AI, making the technology integral to modern manufacturing with manufacturers at the forefront of developing and implementing AI systems.
Most recently, the House-passed reconciliation bill included language to prevent a patchwork of state AI regulations that would impede AI innovation and development, in line with the NAM’s advocacy for workable, flexible national standards.
