93% Of Manufacturing Leaders See AI As Strategic Necessity: KPMG Report

New Delhi, May 21 (KNN) KPMG International has released a new report titled ‘Intelligent Manufacturing - A Blueprint for Creating Value through AI-Driven Transformation,’ examining how manufacturing leaders can harness artificial intelligence as a transformative force in the industry.

The report, which surveyed 183 senior manufacturing AI leaders across eight countries including India, emphasises that AI implementation has evolved beyond simple automation to encompass autonomy, intelligence, and integration across operations.

According to the findings, 93 percent of manufacturing leaders believe organisations that fully integrate AI will gain significant competitive advantages. 

The report notes that 96 percent of surveyed companies have already experienced operational and efficiency improvements, with 62 percent reporting a return on investment exceeding 10 percent.

"AI is no longer a choice but a strategic necessity," stated S Sathish, Partner and National Sector Leader for Industrial Manufacturing, KPMG in India. 

"As organisations embrace intelligent technologies, they're not only enhancing efficiencies but redefining existing industry operating models," he added.

The report highlights that AI adoption is having the greatest impact on research and development and information technology functions, according to 77 percent of industry leaders. 

However, its influence extends throughout the value chain, with 70 percent citing significant operational improvements as AI becomes embedded into core business processes.

For production and supply chains, AI enables real-time decision-making, predictive analytics, and self-optimising workflows. The technology can combine external and internal data points to provide meaningful decision support systems around cost optimisation and intelligent commodity forecasting.

The survey reveals that 74 percent of organisations are using machine learning, 72 percent are implementing predictive analytics, and 67 percent are employing agentic AI. 

Additionally, 80 percent of organisations have invested in AI knowledge and skills training, while 72 percent have focused on building comprehensive business frameworks for implementation.

To maximise value creation, KPMG recommends that manufacturers align AI efforts with core operational strengths to foster trust, build sustainable infrastructure, and empower their workforce. 

The report outlines a three-phased approach for AI transformation: building foundations, leveraging AI across organisational value streams, and redefining industrial operating models through connected ecosystems.

Despite the emphasis on technological advancement, sustainability remains a priority, with 78 percent of respondents believing that meeting sustainability targets is more important than AI implementation. 

The report also acknowledges challenges, noting that 56 percent of manufacturers have faced data-related issues when implementing AI solutions.

Looking toward 2030, KPMG projects that the most successful manufacturers will be those that effectively combine human ingenuity with machine intelligence, creating organisations that are not merely automated but truly intelligent in their operations and decision-making processes.

(KNN Bureau)