Top 5 Priorities for Manufacturers in the Age of AI
From smart factories and AI-powered maintenance to cobots, 3D printing and zero-downtime operations, the shop floor of 2026 looks nothing like it did a decade ago.
Embrace digital transformation at speed and scale for better resiliency, agility, adaptability and spend/value.
Concepts such as Internet of Things (IoT), democratized engineering and manufacturing, open-source development models, adaptive manufacturing and 3-D printing together form the current manufacturing renaissance.
Do you know how to leverage new technologies and the captured data to become more efficient? Are you building a new operating model to gain the visibility, flexibility and agility that you need to succeed in the digital age? Do you know how to address organizational adoption of new initiatives? Do you know how to build a reliable business case model?
For ISG, the smart manufacturing landscape spans the value chain from smart products, smart production and smart services, and from shopfloor up to ERP and cloud. ISG’s deep expertise in smart manufacturing solutions can help you succeed to ace your “must win” battles:
ISG's recent study shows manufacturers are reporting significantly higher levels of success year-over-year.
In the coming years, millions of devices globally will lose the ability to communicate as Mobile providers sunset legacy technology. This means software updates, product monitoring data and customer experience will just stop. ISG monitors over 800 carrier technologies across 200 countries so you can plan accordingly.
AI investment is accelerating, but results remain uneven. Only one in four initiatives is meeting revenue impact expectations, at an average spend of $1.3M per use case. Enterprises are no longer asking whether AI works. They are being asked to prove that it pays.
We help you identify where AI agents deliver the most value, restructure workflows around them and build the accountability models that keep autonomous execution auditable. The enterprises that win won't be the ones that reacted. They'll be the ones that designed for it first.
We give enterprises transparent, benchmarkable pricing models that tag each resource unit with the autonomy level used to deliver it. As AI capability advances, your pricing keeps pace. Both buyers and providers can quantify what that progress is worth.
We bring analysis of more than $2.6 billion in tracked AI spend to every sourcing decision. Procurement, technology and finance leaders get the independent intelligence to rationalize vendor portfolios and hold providers accountable to measurable outcomes.
We embed controls at the point of data creation, define accountability for autonomous actions and build adaptive frameworks that keep pace with AI without impeding it. Enterprises that get this right don't just manage risk. They build the trust that lets them scale faster.
We ground strategy in research across 2,400 enterprise use cases, aligning investment to where impact is proven and designing the data, talent and governance foundations that move AI from pilots into the workflows that drive commercial results.
We benchmark your AI readiness against peers across 75 countries, identify the dimensions holding you back and give you a personalized roadmap to close the gap.
AI investment is shifting decisively toward revenue-generating functions. CRM automation, sales enablement and forecasting have replaced chatbots and IT productivity tools as the leading use case priorities, reflecting enterprise recognition that productivity gains alone do not satisfy board-level scrutiny. At the same time, use cases in production have doubled since 2024, and the portfolio is diversifying rapidly, with over 300 distinct function and industry-specific use cases now in active deployment.
ISG research across 2,400 enterprise use cases shows that the strongest AI returns are currently concentrated in compliance, risk management and quality control, not in the growth and cost outcomes most enterprises originally set out to achieve
The gap between where enterprises are investing and where AI is actually delivering is the defining commercial tension of 2025. Organizations that close it by targeting functions with structured, revenue-attributable data and clear ROI measures will establish performance benchmarks that compress the window for competitors still cycling through pilots. The standard is being set now.
ISG is a leader in proprietary research, advisory consulting and executive event services focused on market trends and disruptive technologies.
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Learn MoreThe manufacturing industry is undergoing a seismic shift, driven by the convergence of digital technologies, sustainability imperatives and evolving customer expectations. As manufacturers strive to modernize legacy systems, integrate emerging technologies and build resilient supply chains, they face a complex landscape of challenges and opportunities. This transformation is not uniform across geographies or company sizes. Mid-tier and specialist IT firms must navigate a complex landscape to deliver scalable, costefficient and domain-specific solutions.
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