• 98% of manufacturers say they are exploring AI and automation tools.
  • Only 20% report being fully prepared to adopt those technologies.
  • The gap suggests many companies could face execution, integration or skills challenges.
  • The report underscores urgency for orchestration platforms and clear AI strategies.

What the report found

Redwood Software’s “Manufacturing AI and Automation Outlook 2026” survey found near‑universal interest in AI across the sector: 98% of manufacturers are exploring AI and automation. Yet just 20% describe themselves as fully prepared to deploy those technologies. The contrast reveals a large readiness gap as companies evaluate next steps.

Why this matters

The split between exploration and preparedness matters for manufacturers and their partners. High interest shows AI is now mainstream thinking in factories and supply chains. But with only one in five fully prepared, many organizations risk delays, failed pilots or wasted investment if they move too quickly without the right resources.

The report’s headline numbers act as a warning: being aware of AI is not the same as being ready to adopt it at scale. For procurement teams, operations leaders and IT, the shortfall will affect project timelines, vendor selection and hiring priorities.

Where the gaps are likely to appear

Although the report does not list every barrier, the large disparity between interest and readiness suggests common issues are at play: unclear strategy, insufficient data infrastructure, integration complexity, and workforce skills. Left unaddressed, these issues can slow deployments and limit business value from AI investments.

Operational impact

Manufacturers that rush pilots without orchestration and governance risk fragmented deployments that are hard to scale. The report highlights why orchestration platforms — tools that connect AI models, applications and workflows — are becoming central to execution.

What manufacturers should consider now

  • Treat the 20% figure as a signal to benchmark readiness across your organization: strategy, data, skills and tooling.
  • Focus initial projects on high‑value, well‑scoped pilots that are easy to measure and scale.
  • Consider orchestration platforms to manage workflows, integrations and governance as AI moves from pilot to production.
  • Partner with vendors that offer implementation support and clear success metrics to reduce costly missteps.

Bottom line

Redwood Software’s Outlook 2026 captures a pivotal moment for the manufacturing sector: near‑universal curiosity about AI paired with limited readiness to act. The numbers create both a warning and an opportunity — manufacturers that close the readiness gap now will likely gain a competitive edge, while those that delay could fall behind as peers operationalize automation at scale.

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