Industrial AI adoption surges but skills & trust gaps remain

IFS has released a study highlighting the rapid adoption of Industrial AI across industries worldwide, revealing both major progress and significant challenges for organisations.

The global survey, conducted among more than 1,700 senior decision makers in industrial enterprises, uncovered what IFS refers to as an "Invisible Revolution" in the way businesses are implementing AI technology. Rather than focusing on consumer-facing productivity tools, companies are embedding AI into core operational processes to automate tasks such as maintenance and supply chain management.

AI execution gap

According to the findings, enterprise AI adoption is expected to rise sharply within the next year, with usage climbing from 32% currently to 59%. Despite this rapid uptake, a pronounced "AI Execution Gap" has emerged. The gap, according to IFS, represents the difference between the pace of AI adoption and the preparedness of staff and management to leverage it effectively.

Of those surveyed, 53% of business leaders acknowledged that their organisations still lack a clear AI strategy. Furthermore, 52% reported that management teams do not fully understand AI, and 99% said their global workforce will require major reskilling to maximise the benefits AI can offer the industrial sector.

"AI is a core driver of business performance, it's time to plug the AI Execution Gap – bring people, process and product together to deliver tangible outcomes," said Kriti Sharma, CEO, IFS Nexus Black. "The pace of adoption is inspiring, but the next big unlock will come from scaling trust, strategy, and talent. Industrial AI is a powerful force for good, and we're in a moment of opportunity: those who move fast will lead the next decade of industry."

Profitability and trust

The research points to measurable benefits, with 88% of organisations reporting improvements in profitability from AI use. Some regional differences also emerged, with the United States reporting 92% and Germany 94% of organisations seeing such gains. In addition, 70% of respondents indicated that their returns on AI investments have exceeded expectations.

Despite the financial benefits, trust in AI remains low among senior decision makers. Only 29% of global leaders are currently comfortable allowing AI to make strategic decisions autonomously. In practice, 68% require human intervention to confirm or approve AI-generated outputs. Concerns about AI bias are also prevalent, with 63% of US respondents highlighting it as a top worry, compared to 40% in Nordic countries.

Amid these concerns, 65% of leaders globally support the establishment of an independent, international AI regulatory body to help bridge the trust gap between technology and business users.

Workforce impact

The study also examined organisational readiness and the implications for employees. Over half of business leaders estimate that up to 60% of their workforce will need new skills to keep pace with AI adoption, and one third believe that the figure could reach as high as 100%. Training and upskilling are seen as essential to maintaining competitiveness and relevance in an increasingly AI-first industrial environment.

Changing business models

Industrial AI is not only transforming productivity, but is also changing fundamental business models. The technology is now frequently used to automate maintenance, predict operational disruptions, and optimise supply chain processes across sectors such as asset management, field service, and manufacturing. The research found that 54% of organisations are already utilising automation AI, while 45% deploy predictive AI, and 35% are experimenting with "Agentic AI" - AI that can autonomously execute decisions throughout operational workflows.

Significantly, 77% of business leaders indicated that AI is accelerating "servitisation" - the shift from selling physical products to providing outcome-based services focused on uptime, performance, and continuous value.

"This is a bold new era where AI is redefining how industries create and deliver value. Industrial AI is moving into real-time, decision-grade intelligence embedded across the enterprise. It's already securely automating the complex, predicting the unexpected, and powering new service-led business models. This is about shifting from tasks to transformation, and the organisations who embrace that shift will lead the next industrial chapter," said Kriti Sharma.

Looking ahead

The study indicates that the next 12 months will be decisive for industrial enterprises aiming to capitalise on AI. Organisations that address the skills gap, develop coherent strategies, and build trust in AI systems will be better positioned to lead in their respective fields as the technology becomes an integral part of day-to-day operations.

"We're experiencing one of the most profound and underestimated shifts in global business. Industrial AI is here and already reshaping how entire industries run, compete, and grow. The time is now," said Kriti Sharma.